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Guide to Requesting Compensation for Tenant Agents
As of August 14, 2024, Bright MLS has removed broker compensation fields. This change has prompted inquiries about how tenants or their brokers can request financial contributions from landlords or their brokers. While associations develop new forms, agents can use the Redwood templates provided in this guide. Two different forms are available below:
Listing Brokerage and Tenant’s Brokerage Compensation Agreement:
The listing brokerage for the landlord can offer a portion of their commission to the tenant’s brokerage upon successful ratification of a lease. This agreement was previously enforced by the MLS through the compensation field. Now, the brokerages will need a separate, written agreement in order to memorialize compensation offered to the tenant’s brokerage, if any. If that is the case, here is the form that can be used: Listing Brokerage and Tenant’s Brokerage Compensation Agreement
- Both the listing brokerage and the tenant’s brokerage must agree in writing to the final amount in the blanks above in order to memorialize this request and create a binding agreement between the brokerages.
- This Agreement would not be an addendum to the lease.
Landlord-Tenant Compensation Agreement
The tenant may request financial contribution from the landlord to be paid directly to the tenant’s agent. In that case, the tenant and landlord may use this form: Landlord-Tenant Compensation Agreement
Important Notes:
- Please keep in mind that these options are two separate and distinct agreements, meaning that if you use both, the tenant’s brokerage may be paid twice.
- Always double-check your own brokerage agreements with your clients as well to ensure the type of request made here aligns with the current version of the brokerage agreement.
- Both forms are available in ZipForms under the Redwood Rental Global Templates (not in the forms library). Agents should download the forms, complete the necessary fields, save the documents, and then upload them to DocuSign for signatures.