What is co-broking?•Co-operation between two companies•Listing broker and selling broker•Commission is typically split•Two sides to the commission (listing and selling)
OPEN LISTINGSCo-broking Disadvantages…
•Multiple listing agents•Competing with the owner•No control on the listing or selling process•Creates competition, rather than co-operation•No guarantee of commission•No standard documentation
MULTIPLE LISTINGSCo-broking Benefits…
•Real estate firms are able to sell each other’s listings•Quicker sale•Vendor representation•Buyer representation•No dual agency
MULTIPLE LISTINGSCo-broking Benefits…
•Maximum exposure•Best price•Guaranteed commission (contractual arrangement)•Automatic co-operation•Standard documentation•Established commission
Who does what?•Listing Broker
Represents the vendor exclusivelyEstablishes commissionMarkets the propertyArranges viewing appointmentsPrepare offers (completes documentation)Present ALL offers and counter offers to vendor
Who does what?•Listing Broker
Send information to vendor’s attorney (carriage of sale)Oversees the SALE processUpdates sale process on websiteIf offer is rejected, signed rejected offer MUST be returned to selling broker
Who does what?•Selling/Co-operating Broker
Represents purchaserPre-qualifies the purchaserIntroduces property to purchaserObtain relevant information for offerArrange earnest depositKeep purchaser informed
Who does what?•Selling/Co-operating Broker
Buyer to sign offerSend accepted offer to purchaser’s attorney
Standard Documentation…NameTRNAdAddressCompany, Occupation and TitlePurchase Price (Offer)Payment Terms
Standard Documentation…Deposit (at least 15% of Sale Price)Earnest Deposit (at least 10% of Deposit)ConditionsCompletionPossessionPurchaser’s Attorney