If the seller signs the Addendum to the PA Regarding Brokerage Fees or agrees to pay for commission in the Purchase Agreement, do we need the Compensation Agreement Between Brokers form?If the seller signs the Addendum to the PA Regarding Brokerage Fees or agrees to pay for commission in the Purchase Agreement, do we need the Compensation Agreement Between Brokers form?
No. The Compensation Agreement Between Brokers is only to be used when the LISTING BROKERAGE is offering cooperating compensation. This is an agreement between the two brokerages – not the buyer and seller. If the seller has agreed via the Purchase Agreement to compensate the buyer’s broker (either directly or through a concession), then the listing brokerage should not also be asked to pay the buyer’s broker.
