Co-Broking Procedures Deborah Cumming April 2012

Co-operation between two companies Listing broker and selling broker Commission is typically split Two sides to the commission (listing and selling)

Open Listings Multiple Listings (Exclusive Right of Sale)

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

Not recommended for co-broking Co-broke letter required

Real estate firms are able to sell each other’s listings Quicker sale Vendor representation Buyer representation No dual agency

Maximum exposure Best price Guaranteed commission (contractual arrangement) Automatic co-operation Standard documentation Established commission

Listing Broker  Represents the vendor exclusively  Establishes commission  Markets the property  Arranges viewing appointments  Prepare offers (completes documentation)  Present ALL offers and counter offers to vendor

Listing Broker  Send information to vendor’s attorney (carriage of sale)  Oversees the SALE process  Updates sale process on website  If offer is rejected, signed rejected offer MUST be returned to selling broker

Selling/Co-operating Broker  Represents purchaser  Pre-qualifies the purchaser  Introduces property to purchaser  Obtain relevant information for offer  Arrange earnest deposit  Keep purchaser informed

Selling/Co-operating Broker  Buyer to sign offer  Send accepted offer to purchaser’s attorney

Name TRN Ad Address Company, Occupation and Title Purchase Price (Offer) Payment Terms

Deposit (at least 15% of Sale Price) Earnest Deposit (at least 10% of Deposit) Conditions Completion Possession Purchaser’s Attorney

Co-operation and effective communication between brokers Quicker sale Best price for vendor Fosters good working relationships between companies Raise the bar in the industry