rbny refuse co-broke

REBNY is NY's version of Scientology

1. REBNY status is irrelevant
2. refusal breaches fiduciary duty owed selling broker's client

There are two separate questions: Does REBNY require co-brokerage with non-members, and is it legal to refuse?

In dealing with firms that do not subscribe to RLS, a subscriber firm (i.e. a REBNY member or the rare firm that subscribes to RLS without joining REBNY) is not bound by the specific terms of the RLS Universal Co-Brokerage Agreement (see http://www.rebny.com/content/dam/rebny/Documents/PDF/Resources/Forms/Universal%20Co-Brokerage%20Agreement.pdf). So it's hard for a non-member firm to use the industry's internal levers to compel a member to co-broke.

On the other hand, refusal to co-broke poses risks for a member firm that generally outweigh the benefits. These risks (especially litigation and complaints from sellers and buyers) grow as refusal becomes more common. The end result is that members seldom refuse to co-broke, although they might get away with it in the near term.

The question is why would an agent not want to co-broke? It serves the best interests of both seller and buyer. A simple co-broke agreement protects all parties, we have signed many (though not all brokers ask us to). We have received high praise from many listing agents and we have worked with some really terrific real estate professionals! As you can see from my transaction list we have done deals with a whose who of NYC real estate agents and always strive to operate in an honest, fair and professional manner. We are licensed real estate brokers, our team has a Harvard man, PHd and Accountant on it and we all strive to serve the highest and best interests of our clients.

I love NYC real estate, have been at it over 25 years. I also understand the professional courtesy's due other agents. We advise clients that have begun a relationship/negotiation with a listing broker (before contacting us) to stay the course and we'll be happy to work with them if the current deal does not materialize. If they insist I will place a call to the listing agent to discuss. Many times they welcome me into the deal as it can be very difficult managing the expectations of a seller and a buyer. However if they prefer we not get involved due to the amount of work they have already done, we graciously step aside and wish them the best. Sometimes clients don't give us the full story when they contact us :)

At the end of the day we all (agents,buyer/seller) want the same thing, a successful deal.

Keith Burkhardt
TBG

it's happening more and more...due in large part to the nature of the market (currently seller-oriented)...e.g. when there are 10 offers on the table, selling agents can often times make up whatever BS they want as a reason not to co-broke. Unless you are the ACTUAL best offer by a significant margin, the selling agent can/will find ways to better suit themselves rather their clients and/or your buyer. BHS in brooklyn and some Corc. sell-sides are saying 'no non-renby people'...which is patent BS as a valid reason why they aren't/can't co-broke....there's nothing in REBNY 'ship language that says renby members cannot co-broke with non-rebny's....the pertinent language is that if you are REBNY, then the sell-side REBNY MUST co-broke with you. Keith brings up all the obvious common sense reasons why not to be a jerk offs who does not co-broke...but again the nature of the market makes it easy for the sell-sides to do whatever they want....

it's a sad state of affairs and frankly a reflection of the antiquated splits these brokerage houses give their agents that they are incentivizing (in the face of serious ethics/legal violations) their agents to not co-broke...also consider how sell-sides snub folks with buyer brokers altogether (rebny or not)....it's f'ing shady and from an owner's perspective, it's absolutely unacceptable.

My downtown boutique firm is a REBNY firm (Manhattan), and we co-broke with non-REBNY brokers. Generally you're going to get your highest and best offer for your sellers when you throw the doors open as wide as possible. It's not even a litigation question; it's about serving your clients.

However, I've certainly been in situations where I'm representing a buyer, and the listing broker doesn't want to offer a 50% split. This is usually the case in Brooklyn, where the property prices are lower, and there just isn't as much pie. But generally we can come to an understanding where the listing agent feels compensated, and I feel compensated, and the buyer feels served.

But Brooklyn has traditionally been the Wild West, and honestly, it's better in "brownstone Brooklyn" -- the Heights/Park Slope/BoCoCa/Fort Greene -- than it was half-a-dozen years ago.

ali r.
DG Neary Realty

Every agent must make their own personal decisions about how to run their business. This includes not only the ethics of the way they conduct themselves but also the long term profitability of their strategy.

I am always happy to co-broke any of my exclusives with any other agents and never ask if they are REBNY members or not. The only factor that has ever mattered or will ever matter is what's best for the owners I work for. Very early in my career I decided that not only was this the right thing to do but also in the long term the most lucrative for my own bottom line.

This is kind of interesting and important news release. I have actually been interviewed by attorneys from the NYS Attorney Generals Office. It was really reassuring to see government in action with the aim of protecting the best interests of the consumer.

http://rebny.com/content/rebny/en/newsroom/in-the-news/2013/NYS-AG-Illegal_anticompetitive_hurt_real_estate_industry_consumer.html

Keith Burkhardt
TBG

REBNY brokers CAN NOT refuse to co-broke with Non-REBNY members so long as the Non-REBNY member is a licensed real estate broker with NY State.

Great find, Keith. I'll be forwarding the AT bureau the 3-4 emails where I was told that unless I am REBNY, I'd receive only a referral right away.

When a property is co-brokered to the world (or at least the world of licensed RE brokers) it doesn't necessarily serve the best interest of the seller. Only the Listing Broker has a fiduciary obligation to the seller - the rest are acting in the best interests of their buyers, and have not even disclosed that to the seller.