Referral and Co- Brokerage Policy from ABC Real Estate
Our policy regarding a commission split is based on two general ways of working together: A referral fee will entitle you to receive from 10% to 25%, and a co-brokerage will be 50% to you, based on the total commission paid to ABC Real Estate at closing.
10%-25% Referral – Recommending a Potential Buyer to Us
We would greatly appreciate receiving a referral from you and gladly pay a 10%-25% referral fee. In order to appropriately serve you and your client, we would first require some basic information.
We need to have your client’s name, budget, type of property, and the desired time frame for purchase. Will your client pay cash or do we need to help with financing? We will always appreciate as many details as you can give us, and by you doing a professional qualification we can get off to a great start and achieve the ultimate result of finding the best property for your referred client.
50% Co-Brokerage – Splitting the Work Equally
An exclusive listing does not mean that only we can sell the property. We invite you to work with us on a 50-50 split through co-brokerages.
Beside the above mentioned requirements, we expect you to accompany your client to the property showing and represent them by establishing a written offer or contract including a possible down payment or earnest money deposit. Of course, we will help you with anything we can to make you and your clients feel comfortable.
Register Your Clients With Us
At the beginning, it is very important to register your client with his/her full name. Please make sure you include any eventual partners, friends or family members involved in the purchase.
We will compare your clients name with our database if your client was already registered and let you know or confirm with you. We will always respect your registration, please keep in mind that we can’t take any responsibility if your client decides to be represented by another third party when purchasing the property or decided for some reason to not to be represented by you.
Showing Properties to Your Clients
In order to make the visit and inspection of a property a pleasant experience to you and to your client we need some basic requirements.
Register your clients with us with the name otherwise we can’t do the showing, sorry. We had to establish this rule based on past experiences. Give us time to arrange with the owners, tenants, stuff etc. We want you and your client to see everything, it takes us from 30 min to 2 hours to arrange the showing of property. Sometimes a 24h prior notice is required. In rare cases, access is not possible for several days due to a rental occupation. Arrange showings ahead of time and as soon as you know. Of course it happens that a prospect wants to see it on a short notice, well then we will try to do magic to get you and your client in. At all showings the listing agent or a representative will be present unless otherwise agreed.
Listings – Exclusive or Non Exclusive
Thank you for your interest in our listings. If you contact us for one of our listings it does not matter if it is a non exclusive or exclusive listing agreement. We will assume that if you decided to contact us, you agree automatically that we will be representing the property on the seller’s side. This will count for your current client or future clients you might have for the property you inquired about.
You can be assured that no matter if it is a non exclusive or an exclusive listing, ABC has a valid and signed listing agreement with the owners/sellers of all the properties we offer for sale. Besides, you can be sure that we have visited the property and inspected it filling out a detailed checklist before deciding to take it a non exclusive or exclusive listing. Along with our marketing efforts, where the property probably caught your attention, we also do a study in the National Registry to make sure the title of the property is clear or if there are any issues that may affect the transfer and eventual sale.
Not an ABC Real Estate Listing – Listed by a Third Party
When you contact us at the beginning because you or your client is interested in a property which is not listed by ABC, we will connect you with the real estate professional who is representing the Seller of this property, unless we have already agreed on a referral or co- brokerage and are communicating with the client or showing properties.
At the beginning and in an effort to avoid an “agent cocktail” we will usually give you the contact address directly of the other real estate professional who is representing the Seller of this property. It is then up to you and the other agents to decide if you would like to show your appreciation by sending us a “Santo”. A Santo is a small part of the commission, usually about 10% of what you made, but you decide.
Agent or Broker and Purchaser or Seller at the Same Time
If you act as an Agent, Realtor or Broker; we need to know about it from the first moment you contact us.
You are a client to us, so we need to know how we can meet your needs and agree on how to divide the work in order to make it fair. We will not agree to pay a referral fee nor a co-brokerage split if you are an agent or a broker and are, at the same time, presenting yourself as the client interested in buying or selling. This is a conflict of interest; other professionals have agreed to this in the past.
Multiple Agents and Brokers – Split 3 Ways, 4 Ways?.
Sometimes we need other people to get the business done. In general, we divide Seller’s side and Buyer’s side. The agent who has the listing should have the right to receive 50% of the commission no matter how many people are involved in the business.
As the broker and listing Agent representing a property, we do not accept lowering our part of the commission, regardless the number of agents, realtors, brokers, or other intermediaries involved. Of course, we have had a few exceptions in the past in order to balance the deal based on some special circumstances and the amount of workload and accomplishments achieved. In any case, it has to be agreed upon initially when registering the client. Of course we will impart the same rules in case we find ourselves in the same position or circumstances.
Commissions for Listing Referrals
We are in agreement with the common custom not to pay any referral fees to anybody who is helping us attain a property for sale.
In case this happens and such property sells, there is no obligation from us to the person who helped us attain the listing. No referral commission or “kick back” will be paid unless previously agreed upon in writing.
Promoting Our Listings
We always welcome you to work with us if you represent a client who could not find the property they were looking for in your listing database. Unless previously agreed upon with us in writing, do not advertise our listings on your web site, other web sites, print media or any other media. Do not copy text, pictures, or any content from our web-site to one of your web sites or other media in order to promote your business using our listings.
We have been forced to such decisions since our listings, both exclusive and non exclusive, have been copied and appeared elsewhere without our permission and without control of being properly updated.
This leads to wrong impressions and misunderstandings with Sellers as well as misleading potential clients and third parties we work with, causing confusion in who is responsible for the sale of the property.
We Prefer to Work With Professionals
We like to work with agents, brokers and realtors who are dedicated to their job and the real estate profession.
Our preference is of people with a good reputation who work full time in real estate with their own office or work from an office with an email address, phone, fax number, and a web page. We expect that you be registered with “Tributacion Directa” (Costa Rican Tax Authority) and are able to issue a “factura timbrada”.
We like to work with members of CCCBR (Chamber of Realtors in Costa Rica) and/or CRGAR, but it is not mandatory.
Intermediary – You are Involved but You are not Working in Real Estate
Real estate is not your business, but you know somebody interested in real estate? If you would like to see your client, guest, friend, or family member in good hands, we promise to do our best meeting their needs in a professional manner and give them fair and respectful treatment.
We have had great experiences receiving recommendations from friends, previous clients, community members, and others. Against some common practices, we do not offer upfront to pay amounts or percentages for a referral in order to obtain clients. Of course, we will recognize that you brought us the business and will be happy to send something your way to show our appreciation. It is then up to you to enjoy this “Santo” yourself or share it, like a discount, with the person who bought through us.
13 % Sales Tax – Impuesto de Venta
Each broker, realtor, agent or intermediary is responsible to pay the 13% sales tax of the commission he receives to “Tributacion Directa”.
We assume that everybody who is working with us accepts these terms and conditions.
Please send your feedback; we’d love to hear from you.
We apologize if our words come out too straight forward. It is in an attempt from us to be clear and concise with these important points. We already work within an established real estate network, nationwide and international. The policies above are based on more than 20 years of experience actively working in real estate in Costa Rica. We hope it is acceptable to you; if so, please print this version and send it back to us with your signature. Let´s do some business together. We will do our best to satisfy the needs of both you and your clients. So lets get started and register your client with us here.
Thank you – Gracias,
ABC Real Estate