Role of a Retired Licensee

June 13th, 2016 at 11:24 pm

Question: You are the listing agent for a home. The buyer’s mother submits an offer to you. The mother does not have a valid real estate license, although she used to be in the business for many years. She tells you that she will be helping the buyer with the purchase, and that the buyer will not be represented by any real estate agent. Can you proceed with this transaction?

Answer: Yes. The mother does not have to be licensed to act on someone else’s behalf in buying a home unless she is acting for compensation (or in anticipation of compensation). So if the mother is helping the buyer free-of-charge, that’s fine. However, you are not allowed to or required to pay the mother any compensation. You should have the buyer sign the Buyer Non-Agency Agreement (BNA) to document that we do not represent the buyer, and that the buyer is not represented by a real estate licensee.

Bonus Question: If you have a 6% Residential Listing Agreement (C.A.R. Form RLA) and you offered 3% to a cooperating broker through the MLS, what is your commission for this transaction?

Answer: You are entitled to receive 6%. Under the RLA, you earn 6% regardless of who procures the buyer, and in this instance, you have no obligation to pay out 3% to a cooperating broker.

Copyright© 2016 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of June 13, 2016. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.

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