Q: What is the most common dispute amongst REALTORS?

A: The most common dispute between REALTORS® involve commission disputes based upon unilateral offers of compensation on the MLS. A listing broker has the option of making a unilateral offer of compensation through the MLS to other cooperating brokers who submit purchase agreements to the seller, that result in a successful transaction. A cooperating broker is entitled to the amount of compensation offed by the listing broker in the MLS if they can demonstrate that they were the “procuring cause” of the sale. If the listing broker chooses not to offer compensation through the MLS or the seller chooses not to withhold the listing from the MLS, then a broker representing or assisting a buyer who wishes to negotiate a cooperating compensation from the listing broker will need to secure a written agreement stating the terms of the cooperating compensation to be entitled to any cooperating compensation from the listing.

Find more common real estate questions and answers in the Desktop Reference Guide!

The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry. 

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