Take a step back to the RPA and paragraph 20; Please see below a frequent follow-up question regarding broker compensation: While offers of compensation from stockbrokers to cooperating brokers are unconditional through MLS (unless MLS rules create specific exceptions, as stated elsewhere in this policy statement), the obligation of a stockbroker may: to compensate a cooperating broker who was the cause of supplying the sale (or leasing), if it is determined by an arbitration procedure, that, without the fault of the list broker and in the exercise of good faith and due diligence, it was impossible or financially impossible for the broker to collect a commission in accordance with the listing. In such cases, the right to cooperative compensation offered through MLS would be an issue that should be determined by an arbitration body on the basis of all relevant facts and circumstances, including, but not limited to, the reason why it was impossible or financially impossible for the broker to recover some or all of the commission set out in the listing agreement; At what point in the transaction did the stockbroker know (or should have known) that some or all of the commission set out in the listing agreement might not be paid; and how quickly the broker had informed the cooperating brokers that the commission set in the listing agreement might not be paid. (Modified 11/98) Precedence should not be construed as legal advice. This is only for the purposes of training real estate agents. Q. Does the agent need an instruction signed by the seller to pay the commissions to pay the stockbroker? If the non-MLS transaction includes a single agent or a single broker, protecting your commission as a seller is generally not an issue, as the control of the commission rests with the registration broker. However, protecting your commission as a seller in a non-MLS transaction involving more than one broker is a problem in our current market. This article describes some of the problems you need to assess when you find yourself in this situation. To avoid disputes over the issue of brokerage compensation, it is wise to guarantee the right agreements. These agreements may include: Please remember that even in the case of a written broker-to-broker compensation contract, if a commission issue arises, fiduciary obligations to your client require that their interests be placed above your client, a goal that can normally be achieved by entering into the trust contract, but before receiving any litigation and/or issues related to compensation with the other broker.