Residential Listing Agreement (RLA) Stated Total Compensation & Co-op Compensation
Residential Listing Agreement (RLA) Stated Total Compensation & Co-op Compensation
Compensation percentage – Total compensation to Listing Broker (paragraph 3.A.) and CSO compensation (Cooperating Sales Office) offered to potential Buyer Broker (paragraph 3.D.) needs to specified in the RLA.
- Paragraph 3.A. – Specify the “total” compensation (percentage/amount) to be paid by the Seller to the Listing Broker. This amount equals the percentage/amount of the Listing Broker’s “portion” and the percentage/amount of the Buyer’s Broker’s “portion” combined.
- Example: 5.0% total commission – 2.5% to Listing Broker and 2.5% to Buyer’s Broker.
- Example: 4.0% total commission – 1.5% to Listing Broker and 2.5% to Buyer’s Broker.
- Paragraph 3.D. – Specify the CSO [Cooperating Sales Office] “portion” of the total compensation that is being offered to the cooperating Broker. Seller agrees to the amount of compensation being offered to the CSO [Cooperating Sales Office].
- Broker Compensation is negotiable for both total and CSO amounts.
- If no CSO compensation is offered, state $0.00.
- If CSO is less than 2.5% percent. please specify the percent being offered.
- Seller to initial paragraphs 3.A. & 3.D. to acknowledge that the Seller understands and agrees to the specified compensation(s).
Discuss with the Seller about any potential corrections or modifications that may need to be made to the Listing Agreement and use the Form MT [Modification of Terms].
Keller Williams Policy
The minimum acceptable compensation to Keller Williams Realty for performance of brokerage services is 2.5% of the sales price of the property at Close of Escrow, whether our brokerage is representing the Buyer or Seller. If the brokerage is representing both Buyer and Seller the minimum acceptable compensation is 5% of the sales price. Any request for a deviation from this policy must be brought to the Team Leader for review.