[WSBARP] lawyers receiving commissions

Mon Jun 19 19:03:41 PDT 2017

Thanks Kary.  Your suggestion is one of several "work-arounds," but as you
pointed out,  it still requires the cooperation of the Listing Agent.

Does anyone think there is anything wrong with the Selling Firm just
rebating the remainder directly to the buyer after closing?  Does it
violate the statute in question or any others?

Thanks, -Randy.

___________________________
Randall J. COrnwall
DEMCO LAW FIRM, P.S.
(206) 203-6000

On Mon, Jun 19, 2017 at 5:43 PM, Kary Krismer <krismer at comcast.net> wrote:

> Any attorney fees that would be charged for representing the buyer would
> need to be paid by the buyer, not the seller as part of the Selling Office
> Commission.  And if there is no agent on the other side the listing office
> is entitled to the Selling Office Commission.
>
>
>
> So if the buyer pays additional funds into escrow to pay their attorney I
> suspect the escrow could pay that to the attorney, but I don’t think that
> deals with the issue.  And there would be nothing that would keep the buyer
> from paying their attorney directly, so no reason to pay them through
> escrow.
>
>
>
> On the lender complaining issue we’ve dealt with rebates by having the
> seller agree to pay buyer closing costs in Form 22A and then in Form 22D
> offering to reduce the SOC.  That basically accomplishes the same thing
> (but it does require the listing agent to go along since as noted they
> would be entitled to the SOC if not otherwise paid).
>
>
>
> Kary L. Krismer
>
> John L. Scott/KMS Renton
> 206 723-2148 <(206)%20723-2148>
>
>
>
> *From: *Bryce Dille <BryceD at cdb-law.com>
> *Sent: *Monday, June 19, 2017 3:10 PM
> *To: *WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject: *Re: [WSBARP] lawyers receiving commissions
>
>
>
> If the atty involved charged a fee for services and not a commission for
> putting a deal together it could be paid at closing and not run  afoul of
> the statute.
>
>
>
> *From:* wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.
> wsbarppt.com] *On Behalf Of *Randall Cornwall
> *Sent:* Monday, June 19, 2017 2:53 PM
> *To:* WSBA Real Property Listserv
> *Subject:* Re: [WSBARP] lawyers receiving commissions
>
>
>
> Please respond to the list.
>
>
>
> On a semi-related note - I recently had a Managing Broker tell me that his
> real estate firm could not refund a buyer the fully agreed upon commission
> rebate out of the SOC because the buyer's lender said they would not allow
> the full amount of the rebate to be paid in closing.  He also cited this
> statute saying the firm could not pay the buyer the remainder of the
> commission rebate outside of closing because the buyer was not a licensed
> broker.
>
>
>
> Thoughts?
>
>
> ___________________________
>
> Randall J. COrnwall
>
> DEMCO LAW FIRM, P.S.
>
> (206) 203-6000
>
>
>
> On Mon, Jun 19, 2017 at 12:41 PM, Roger Hawkes <Roger at law-hawks.com>
> wrote:
>
> To your knowledge are there any judicial rulings or WACS establishing a
> lawyer’s right to get a selling broker’s commission without a real estate
> broker’s license?  A managing broker is quoting this statute as the reason
> why escrow can’t pay a ‘procuring cause’ lawyer the ‘selling broker’s’
> commission as listed on the purchase and sale agreement.
>
>
>
> *RCW 18.85.301*
>
> *Sharing commissions.*
>
> (1) Except under subsection (4) of this section, it is unlawful for any
> licensed firm, broker, or managing broker to pay any part of the licensee's
> commission or other compensation to any person who performs real estate
> brokerage services and who is not a licensed firm, real estate broker, or
> managing broker in any state of the United States or its possessions or any
> foreign jurisdiction with a real estate regulatory program.
>
> (2) Except under subsection (4) of this section, it is unlawful for any
> licensed real estate firm to pay any part of the firm's commission from
> brokerage services or other compensation to a real estate broker or
> managing broker not licensed to do business for the firm.
>
> (3) Except under subsection (4) of this section, it is unlawful for
> licensed brokers or managing brokers to pay any part of their commission
> from brokerage services or other compensation to any person, whether
> licensed or not, except through the firm's designated broker.
>
> (4) A commission may be shared with a manufactured housing retailer,
> licensed under chapter *46.70*
> <http://app.leg.wa.gov/RCW/default.aspx?cite=46.70> RCW, on the sale of
> personal property manufactured housing sold in conjunction with the sale or
> lease of land.
>
>
>
>
>
> Roger Hawkes, WSBA 5173
>
> 19909 Ballinger Way NE
>
> Shoreline, WA 98155
>
> www.hawkeslawfirm.com
>
> 206 367 5000 <(206)%20367-5000> voice
>
> 206 367 4005 <(206)%20367-4005>  fax
>
>
>
>
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