4,800,082
No standard commission for me David, though there is a minimum. Though, it's a secret. And, if I told you, I'd have to kill you!
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David Saks
Memphis, TN
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Angela Foley
Falls Church, VA
1,572,727
Okeedokee, Jason. No need to argue, but I'll refer to the fact that a "standard" is a basis for comparison in this case, and since the broker isn't in collusion to control a market with other brokers it's a reference point against which other things can be evaluated by that broker in determining his "normal" commission rate, as you suggest.
And, as you were so quick to point out that the legislative codes had nothing to do with the question, the first example is very easy to understand. It basically says that if you you don't have a contract for a commision you have the right to prove in a courtroom that your services are worth what you claim they're worth.
The second legislative code basically states in language, that anyone with a third grade education or lower could understand, that if the real estate commission attempts to set the commission they'll end up in deep trouble. So if the commission can't establish one why should anyone else be allowed to ?
I thought clues were well laid in #4 #4 that the "original" question is wrought with controversy. Thanks.
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David Saks
Memphis, TN
1,304,300
A brokerage is in fact entitled to set its "normal" commission rate, as long as they don't imply that it's standard for others, which would imply collusion. The stuff you posted has nothing to do with your original question.
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David Saks
Memphis, TN
1,572,727
That's right, Angela, although the broker can establish the commission split.
62-13-301 of the TREC adds:
A real estate agent, employed to sell property
without any special contract as to his compensation,
will be entitled to prove and recover
such reasonable commissions as, for similar
services, real estate agents in that particular
locality are, by usage and custom, entitled.
Arrington & Farrar v. Cary, 64 Tenn. 609, 1875
Tenn. LEXIS 139 (1875); Pennsylvania R.R. v.
Naive, 112 Tenn. 239, 79 S.W. 124, 1903 Tenn.
LEXIS 101, 64 L.R.A. 443 (1903).
and
62-13-204. Regulation of fees or commissions. — Nothing herein shall allow the commission to set fees or commissions for real estate contracts or transactions and if the practice is found to be in actual practice in the field, if because of action of the commission, all members of the commission shall forfeit their licenses. [Acts 1973, ch. 181, § 21; T.C.A., § 62-1312.]
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David Saks
Memphis, TN
10,293
1,572,727
Gabe...you're a riot !!!
Can I send you a peanut butter and banana sandwich ?
After you finish it you'll tell me !
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David Saks
Memphis, TN
6,393,404
279,878
630,251
4,319,419
3,071,489