Dear Cooperative Broker: We understand that you are interested in presenting to a prospective buyer (the “Prospective Buyer”) a property that has been listed by Knipe Land Company®, and/or Knipe Land Oregon, LLC, and/or Knipe Land North, LLC and/or
Knipe Land Northwest, LLC® or you are interested in referring a Prospective Buyer for representation by Knipe Land. We have set forth below our policies with respect to compensating another broker (a “Cooperating Broker”) in those situations. A. Commission Splits. The terms on which we will split commissions vary from property to property, because the terms of listing agreements vary from property to property. Please ask the Knipe Land associate that listed the specific property in question (the “Property”) for details. We will not split commissions with you unless you engage fully in the total transaction process and unless you are present for each showing or inspection involving the Prospective Buyer and at the closing of the sale of the Property to the Prospective Buyer. B. Referrals Fees. We will not split commissions with a Cooperating Broker who is not properly licensed in the state where the property is located or who is unwilling or unable to engage fully in the total transaction process or who is not present for each showing or inspection involving the Prospective Buyer. Nevertheless, if you register the Prospective Buyer with us, you may be eligible for a referral fee if you otherwise comply with the requirements set forth herein and if it is lawful to pay you a referral fee. Our standard referral fee is 20% of the buyer’s side of a commission (i.e., the split of the commission, if any, that would have been paid to the selling broker if the selling broker was not Knipe Land) if such commission is received within one year from date of registration of the referral. The percentage adjusts to 10% for commissions received after one year and 0% for commissions received after two years. Circumstances may vary and we reserve the right to modify this as necessary to reflect each situation. To be eligible to receive a commission split or a referral fee from Knipe Land (“compensation”) upon the successful closing of a sale to a Prospective Buyer, you are required to adhere to the rules and procedures that follow. Knipe Land may withhold compensation if any of these requirements is not satisfied.
- In presenting the Property to a Prospective Buyer, you are required to use our brochure with its cover, narrative, maps, and photographs. Other information about the Property, including copies you make of our brochures or our web site pages may not be used.
- No direct or indirect contact with the Property owner is permitted. Any direct or indirect contact with the owner of a Property or their employees, agents or familiy members must be channeled through our office and communicated through us. Keep in mind that employees, agents and family members may not be aware the property is listed for sale. This requirement also applies to the Prospective Buyer and any violation of this requirement by the Prospective Buyer shall be deemed a violation by you.
- Any offer you write for a Prospective Buyer must provide that all earnest monies shall be placed in Knipe Land’s real estate trust accounts or held by a licensed escrow agent.
- A Knipe Land associate must be present at all showings and during any and all contacts with the owner or his employees, agents, or family members. You must provide us with sufficient advance notice of any showing so that a Knipe Land associate can make arrangements to be present.
- We will not split commissions with any Cooperating Broker who does not provide us a complete and accurate copy of a current, written compensation or representation agreement between the Cooperating Broker and the Prospective Buyer. We reserve the right to reduce your share of any commission split by any amount the Prospective Buyer has agreed to pay you under your compensation or representation agreement with the Prospective Buyer.
- You are required to compensate additional brokers out of your share of any compensation if you involve additional brokers.
- You must not advertise a property that is the subject of a Knipe Land exclusive listing.
- The Prospective Buyer must not be one who has contacted Knipe Land about representation or who has had prior direct contact with Knipe Land concerning any specific property prior to completion of the registration process, unless you have a written compensation or representation agreement with the Prospective Buyer.
- Please note that some states do not allow out-of-state brokers to come into that state or to inspect the property located in that state or to be involved in negotiations related to the sale of property in that state. If such laws are violated, it may be unlawful to pay any compensation to you. In that event, we shall not be required to do so.
- If a Cooperating Broker offers less favorable terms with respect to commission splits or referral fees, we reserve the right to compensate the Cooperating Broker under its own less favorable terms.
- Knipe Land shall not be required to pay any compensation with respect to a commission that has not been actually received by Knipe Land or that is in dispute in any way. No Cooperating Party shall be entitled to receive both a commission split and a referral fee on a single transaction.
- No compensation shall be paid with respect to a Prospective Buyer who has not been registered with Knipe Land and no registration shall be considered complete until you have completed the following form, signed the same and sent a copy to Knipe Land and until the form has been accepted in writing by the principal broker of Knipe Land.