Sales Transactions FAQs
Q: Are we obligated to pay your fee if the transaction does not close?
A: No, our fee is subject to the successful closing of the transaction.
Q: I would like some of my salespeople to work on the transaction. Can they do that?
A: Yes, as long as the transaction state allows it, any salespeople actively licensed under the out-of-state broker's license may also work on the transaction.
Q: I'm a salesperson in my home state and not a broker. Can I still enter into a co-brokerage agreement with you?
A: We prefer to work directly with the out-of-state broker for several legal and logistical reasons. For example, not every state allows an out-of-state salesperson to work on transactions unless the out-of-state broker/firm is involved. Additionally, if the out-of-state broker/firm is not involved, you would not be able to advertise using their name or logo in the transaction state.
Q: When do I get paid my commission and how does that work?
A: In most states, an out-of-state broker's commission can be disbursed directly by the settlement company to the out-of-state broker. All commissions for out-of-state salespeople must disbursed to their home state broker. This particular requirement is a function of the transaction state's licensing laws as well as the out-of-state salesperson's home state licensing laws. Otherwise, the broker of record and the salesperson may be in violation of licensing laws - not only in the transaction state, but also in the salesperson's home state.
Q: What's the best way to communicate with you during a transaction?
A: Email, since it allows us to save a history of our conversations. This helps remind us where we're at in the transaction process. It's also just good business practice for any potential disputes with clients or audit requests from regulators.
Q: What types of matters are we expected to communicate with you during a transaction?
A: We ask that you copy us on all emails. For any communications which have taken place offline (phone calls, regular mail, etc.), we ask that you let us know about those communications as well, via email.
Q: I'm worried that working alongside another broker will slow down the transaction process. How responsive will you be?
A: We're very responsive, so this is never a concern. We typically respond to inquiries within 30-60 minutes. We'll also turnaround any forms requiring our review and/or signature within a few hours, depending on how long the forms take to review.
Q: How will I know what I can and can't do in the transaction state?
A: We'll make it clear from the start. We include that information in the Co-Brokerage Agreement, reference the relevant statutes/rules if necessary, and explain everything clearly so you'll know exactly what you can and can't do in the transaction state.
Q: I've transacted out-of-state before and didn't have an issue. Why should I work with you?
A: Just because you haven't had an issue in the past, doesn't mean you won't in the future. Brokers who have a history of evading licensing laws usually get caught. Performing brokerage activities in a state where you're unlicensed can lead to regulatory, civil, and criminal issues in; 1) the transaction state, 2) your home state of licensure, and/or 3) any state where you eventually apply to become a broker. You could also be subjected to "clawbacks," which is when you're forced by a judge or a regulatory commission to pay back any commissions you've earned illegally in the transaction state (sometimes as much as 3x the commission!). In addition, clients could even stiff you in the middle of closing if they find out you're not licensed (and it would be completely legal for them to do so!). Furthermore, some states classify the unlicensed practice of real estate as a crime ranging from a misdemeanor to a felony. As you can see, performing real estate brokerage activities in a state where you're unlicensed carries significant risk. When you work with us, we help you mitigate these risks.
Q: Will I work with the same broker of record for every state?
A: Yes, you'll work with the same broker of record for every state where we're licensed.
Q: I'm worried you might try to poach my clients or leads. What assurance do I have you won't do that?
A: We include non-compete provisions in our co-brokerage agreements. We also respect the relationships you have with your clients. We never solicit your clients for business. In most states, we also forward all inquiries about transactions to you. Also, in most states you can make it clear in advertising materials that you're the primary listing contact. The sole purpose of our service is to assist you in ensuring a legally-compliant out-of-state real estate transaction.
Q: Won't my clients get confused if I work with you?
A: Not likely. The practice of using a broker of record for an out-of-state transaction is an established one. Its also very easy to explain to your client. You're simply enlisting a licensed broker in the transaction state to ensure a legally compliant transaction. In fact, your clients will appreciate the fact that you're observing the law and doing business above-board. Many brokers will even mention this fact in their listing presentations. In doing so, it not only earns the client's respect, but it also prompts the client to question your competitors about whether they're licensed in the transaction state or using a broker of record. If your competitor trips up when asked this question, the client will view you much more favorably than your competitor.
Q: Are we required to use your forms?
A: It depends on the form. All of our forms have been drafted to comply with various state laws, regulatory requirements, and effectively mitigate the potential for any contractual disputes with clients. This allows us to offer our services at a discounted price. Since its unlikely that a client or their counsel would find anything objectionable in our forms, we request that you use them whenever possible. While our co-brokerage agreement and our agency disclosures are required, you can use your own Listing Agreement and/or Buyer Rep Agreement as long as they are compliant with Transaction State law and effectively mitigate any potential legal issues with the seller/buyer. If that is the case, you will need to add our information to the form and include a signature block for us to sign.
Q: Can I brand your forms with my own firm logo?
A: Yes. Email us your logo and we'll add it to the forms.
Q: What are your hours of operation?
A: Our office hours are Monday-Friday 8:30am-5:00pm, Saturday 8:30am-3:00pm, and closed on Sunday. Please note, we are on Eastern Time. We accomodate broker/client needs outside of these hours depending on our availability.
Q: How do I get started in working with you?
A: You'll start the process by visiting our Onboarding page. You'll need to submit a 'Broker Onboarding Sheet.' This form allows us to get to know you better. You must disclose whether you've had any licensing violations and whether your home-state license is restricted in any way. Licensing violations do not necessarily preclude you from transacting with us. We are most concerned with serious violations such as; fraud, conversion of client trust funds, or involvement in mortgage fraud schemes. If you have any violations of this nature, we would have to decline working with you. However, if you have relatively minor violations such as; advertising violations, agency disclosure violations, lapsed license issues, or CE issues we won't have major concerns as long as your license is active, unencumbered, and you are ensuring future compliance with such issues.
Q: Is this legal if I'm not licensed in the Transaction State?
A: License portability is recognized in nearly every state. In states where license portability is allowed, it is prescribed by statute and is also typically referenced in the various real estate commission rules.
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