We’ve recently received calls from members wondering if they have to submit their personal transactions through their brokerage. Neither TREC nor Texas REALTORS® has any rules stating that members have to use their brokerage for their personal transactions. However, the brokerage may have its own policy that all transactions, including the personal transactions of its independent contractors, must be submitted and handled through the brokerage.
Members should check with their brokerage first to see if there is such a policy. It may also be found in the member’s independent contractor agreement with their broker.
–Traci Jackson, Staff Attorney
This is partially bad advice. TREC states all brokerage activities must go through a broker. If an agent wants to circumvent their broker in their personal transactions, they have 2 choices: 1) put their license on inactive. 2) use an agent of another broker. The real underlying question here is, “how can an agent get the full commission without splitting with their broker on their personal transactions?” The answer: Refer to your independent contractor agreement and attached documents. If it isn’t addressed there, talk with your broker directly about their personal transaction policy and get it in writing. Any other… Read more »
In personal transactions, such as selling your own home, you wouldn’t be getting a commission. If you offer a buyer’s agent commission then that money would go through that agents broker. No money on your side. No listing agreement signed.
…sometimes (as in our case) our E & O Insurance requires ALL transactions to go through the Brokerage.
If a REALTOR personally engages any services which involve use of a Brokerage subscription (MLS) or online service in the process of representing themselves or ….
if the REALTOR indicates they are a licensed REALTOR (i.e., as required in the contract), how can they NOT have their Broker involved?
Transparency and ethics are involved….
If you wanted to sell your personal home, you can list without a broker. You have to always disclose you are a realtor on any real estate transaction. But, you aren’t doing a listing agreement and you aren’t taking a commission. Its your personal home. You can also offer a buyer’s agent commission as that money would go through that agents broker. I’ve seen a lot if agents list on zillow or fsbo and offer a buyers agent commission.