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November 2, 2009
Fee for Lawyer Acting as Broker
My husband and I are both attorneys, and I've heard through the grapevine that if we represent ourselves when buying an apartment (no buyer's broker) we are entitled to part of the broker's fee. If anyone has details on how this works, I would really appreciate it. Thanks!!
Comments
Wow, I never thought to try that one. Sounds far fetched, but I am not knowledgeable in this area. I imagine you'd have to contract for it, as in that you might be entitled in teh sense that you are allowed to serve as a broker due to your law shingle, but not a right to collect something no one has agreed to pay you. I wonder if you'd ahve to assert that you are representing yourself as your own broker when you go to see the place so the seller's broker knows the terms up front. Not sure sandbagging later will work. But that is my totally uninformed gut reaction.
Posted by: slopefarm at November 2, 2009 11:19 AM
I think it only applies to R.E. Attorneys, but you should check that out.
If you are acting as your own broker, you are entitled to collect your co-broke commission (traditionally 3% of 6%). You can collect it at closing, but will have to pay income tax on it. Or you can built into the deal and receive the discount on the purchase price (this is what I suggest).
Word to the wise, make sure you deal with a reputable REBNY firm. Most Listing Brokers will want to keep the entire commission and will make it as difficult as possible.
Posted by: kdabrowski at November 2, 2009 11:24 AM
As an attorney, you can get a real estate license without taking the classes and exam. It is that license that enables you to seek a cut of the fees.
The theory is that if you do not use a buyers' agent and have your own license, you should be entitled to the share of the fee that a buyers' agent would have received. Whether the sellers' broker agrees remains to be seen. You do need to disclose the idea up front.
Posted by: nyc_sport at November 2, 2009 2:18 PM
It applies to all licensed NYS attorneys. However, as slope farm said, it's something that should be disclosed from the begining. If the listing is an open listing, not a co-broke or otherwise does not compensate a buyer's broker - then you are entitled to nothing.
Posted by: Crownlfc at November 3, 2009 10:55 AM
You need to have your Broker's license. As an attorney, you are entitled to a broker's license by virtue of your degree and admission to the bar, but you still have to appy to the state department for your broker's license and pay the fee. Agreed with above, you need to disclose it to the selling broker your idea. It may not sit well. Many times, the selling broker deals directly with the buyers (no buyers broker) and the seller in broking the deal. The selling broker in this situation will still be doing all the work. A buyers broker shares the load with the selling broker and you will not be doing that work since you are the actual buyers.
Posted by: broker at November 3, 2009 1:41 PM
I respectfully disagree with you Broker. As far as I know, a NYS Lawyer does NOT need a brokers license to broker deals. They do however, need one if they plan to be a principal broker, open up an office and have people work under them.
Posted by: Crownlfc at November 4, 2009 1:53 AM
I am a lawyer as well, you have to be a licensed broker in order to get paid a commission in a real estate transaction in a cobroke.
Posted by: broker at November 4, 2009 10:07 AM
greed knows no limit among lawyers...lol
Posted by: eman1234 at November 5, 2009 12:09 AM
Fair point broker
Posted by: Crownlfc at November 5, 2009 2:28 PM
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