A quick and friendly reminder that Equity Colorado collects a fee of $599 and a $199 Brokerage Administrative Fee on every transaction. Please see below for a few scenarios in which we receive many questions:
Personal Transactions: If you sell your own home and do not take a commission, Equity still requires the $599 transaction fee and $199 Brokerage Administrative Fee (and New Licensee Startup Fees if applicable). Therefore, you need to notify the title company of these fees and have them added as commissions paid to Equity Colorado Real Estate on the Settlement Statement.
Double-Sided Transactions: If you are the ONLY broker in a transaction, Equity handles the transaction as TWO separate deals in which case the $599 + $199 fees are collected twice: once on the seller side of the transaction and once on the buyer side of the transaction. In addition, you must submit a Listing Packet / Under Contract Packet (for the seller side) and a Buyer Packet (for the buyer side) 3 - 5 days before closing.
Exceptions: The only exception in which Equity will handle the deal as a single transaction is if you are NOT the listing agent and you represent the Buyer in a For Sale By Owner.
Dual or Variable Rate Commission Arrangements: On a related note, please read REColorado’s Policies and Procedures on Dual or Variable Rate Commission Arrangements:
Section 6.4 Dual or Variable Rate Commission Arrangements: The existence of a dual or variable rate commission arrangement (i.e., a contract in which the seller/landlord agrees to pay a specified commission if the property is sold/leased by the listing broker without assistance and a different commission if the sale/lease results through the efforts of a cooperating broker; or a contract in which the seller/landlord agrees to pay a specified commission if the property is sold/leased by the listing broker either with or without the assistance of a cooperating broker and a different commission if the sale/lease results through the efforts of a seller/landlord) must be disclosed by the listing broker by marking yes in the Variable Commission field. The listing broker must, in response to inquiries from potential cooperating brokers, disclose the differential that would result in either a cooperative transaction or, alternatively, in a sale/lease that results through the efforts of the seller/landlord. If the cooperating broker is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client makes an offer to purchase or lease.
