Compensation Agreements, Riders and Modifications

Duration – 2 hours
2 Hours Continuing Education Credit

COURSE DESCRIPTION:

  • This program discusses how and when to use the compensation agreement when a real estate agent is a buyer’s broker. We review both compensation agreements, Seller to Buyer’s Broker, Form CASB-1 and Seller’s Broker to Buyer’s Broker, Form CABB-1 (and their modification forms) in detail.
  • Next, we talk about the two methods of compensation. The first method is direct compensation using the rider GG, Seller’s Agreement with respect to Buyer’s Broker Compensation. The second method is credit, in dollars, percentage, or both, using the rider FF, Credit related to Buyer’s Broker Compensation. We review both compensation riders/forms line by line, clause by clause.
  • The buyer’s broker learns how to use each of these forms to assure she/he gets paid without incurring antitrust liability.
  • Throughout the program we tackle frequently asked questions.

Compensation agreements between Seller or Seller’s broker and Buyer’s Broker (and modifications thereof) may serve to supplement the compensation of the buyer’s broker. Second, how to transfer compensation to buyer’s broker by straight money transfer or credit is accomplished by Compensation riders. Therefore, these forms are important tools that real estate professionals must become intimately familiar with.

LEARNING OBJECTIVES:

Upon completing this course, the participants should be able to:

  • Learn how and when to use the Form FF, Credit Related to Buyer’s Broker Compensation
  • Learn how and when to use the Form GG, Seller’s Agreement with Respect to Buyer’s Broker Compensation.
  • Learn how and when to use Compensation Agreement: Seller to Buyer’s Broker, CASB-1 as well as its associated Modification Form.
  • Learn how and when to use Compensation Agreement: Seller’s Broker to Buyer’s Broker, CABB-1 as well as its associated Modification Form.
  • Understand the interplay between (i) the Buyer Broker Agreement (ii) the compensation riders in the form of credit (Form FF) and or cash (Form GG) and (iii) Compensation agreement CASB-1 and CABB-1.
  • Understand how to explain during the buyer presentation that the source of the payment can be the buyer, seller, or both.
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