On July 14, 2018 a
Exhibit,Appendix
was filed
involving a dispute between
Ellyn Berk,
Pamela Goldstein,
Paul Benjamin,
Tony Berk,
and
Houlihan Lawrence Inc.,
for Commercial Division
in the District Court of Westchester County.
Preview
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019
EXHIBIT 57F
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
NYSCEF DOC.
9/12/2018 NO. 456 First-Timer FAQ: How Do RECEIVED
Real Estate NYSCEF: 05/14/2019
Commissions Work?
Forbes CommunityVoice Connecting expert communities to the Forbes audience. What is This?
1,199 views | Jun 6, 2018, 08:30am
First-Timer FAQ: How Do Real
Estate Commissions Work?
•
Kevin Miller CommunityVoice
Forbes Real Estate Council Q
Real Estate
POST WRITTEN BY
Kevin Miller
Director of Growth at Open Listings, developing the smartest and most efficient way to
50% commission refund.
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
9/12/2018 First-Timer
FAQ: How Do Real EstateCommissions Work?
NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019
Before entering the real estate market, one of the most common concepts that
buyers and sellers have to wrap their heads around is understanding how real
estate commission fees work. Since most agents aren't hourly or salaried, there
can be some confusion as to how - and whom - the final bill is paid.
by
Becoming informed about the real estate process is the first step to becoming a
homeowner, so you can feel comfortable knowing what you're paying for and
exactly where your money is going.
Understanding The Key Players
In every real estate transaction, there are six different parties who are financially
involved in the sale of a home. They are:
• The seller: The person who's decided to put their home on the market.
• The agent: An individual who's been hired the seller to market the
listing by
home and negotiate on their behalf.
• The broker: This can be the agent themselves or another
listing listing
individual for whom the listing agent works for or whose company the listing
agent works under.
• The buyer: The person who's decided to the home.
buy
MORE FROM FORBES
•The buyer's agent: The person who the buyer has hired to help them find
their new home and negotiate on their behalf.
• The buyer's agent's broker: This can be the agent themselves or another
person for or under whom the buyer's agent works
While each sale may be handled a bit differently, it's important to know that a
real estate commission is one fee - a percentage of the home's
typically usually
https://www.forbes.com/sites/forbesrealestatecouncil/2018/06/06/first-timer-faq-how-do-real-estate-commissions-work/#316b6e433894 2/5
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
9/12/2018 First-Timer
FAQ: How Do Real EstateCommissions Work?
NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019
sale price - that is split between these six individuals.
This is where it gets a little tricky.
First, the overall commission percentage is divided between the two brokerages.
Then, each real estate agent is paid via a predetermined agreement they've made
with their broker. In most cases, the agent is given a portion of the split, while the
broker keeps the remainder to cover office expenses. In others, the agent is paid a
flat-fee per each sale. Sometimes, the agent is given 100% of their commission
and then charged a recurring bill by their broker to cover overhead costs.
Phew. Still with me?
How commission fees are determined
Unlike many other industries, there are no set amounts for real estate
commissions. They're set on a case-by-case basis for each sale, in accordance with
The Real Estate Settlement Procedures Act (RESPA). While percentages are
variable, you can typically expect to pay around 5-6% of the home's sale price.
This amount is determined when the seller signs the listing contract with his or
her agent. They will negotiate the commission fee prior to signing an
agreement. Keep in mind that, in addition to eventually accounting for both
agents'
paychecks, part of that percentage will also go toward covering
supplemental fees like marketing and paperwork costs.
Once an offer has been received on a home, the listing agent and buyer's agent
will negotiate amongst themselves to determine how to split the percentage of
commission between them. In most cases, it will be split right down the middle.
However, ifthere are mitigating circumstances, a different agreement may be
reached.
Who Pays Commission Fees? (And When?)
This, too, is up for negotiation. Typically, the seller is responsible for paying the
commission fees. These are taken care of at settlement, along with any other
https://www.forbes.com/sites/forbesrealestatecouncil/2018/06/06/first-timer-faq-how-do-real-estate-commissions-work/#316b6e433894 3/5
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
9/12/2018 First-Timer
FAQ: How Do Real EstateCommissions Work?
NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019
closing costs such as any municipal permits or title fees, which may be required in
order to transfer the deed on the property from one person to another.
However, that's not to say that the buyer gets these services entirely for
free. While the seller is able to the costs for the home - in
usually pay closing
which the real estate commission is included - upfront from the proceeds of the
sale, they usually account for these fees by asking for a higher sale price.
Ultimately, the commission fee gets baked into the home price, which means
that buyers end up paying the fees.
In more unusual situations like short sales, foreclosures or auctions, the closing
costs (and by extension the entirety of the commission fee) may be the buyer's
responsibility.
Each of these cases will vary, but that is one reason why it's extremely important
to read all the paperwork on these sales. You need to be sure you're prepared to
shoulder all of the associated fees before signing any legally binding contracts.
What Happens If The Sale Falls Through?
Since commission fees are handled at settlement, many people wonder what
they'll need to pay if a sale falls through. In most cases, the answer is nothing.
Your agent will only get paid if and when they've successfully helped you buy or
sell your home.
As with everything else in life, however, there are exceptions to every rule.
Sometimes agents will still collect a fee from you:
• If you're a and they're the one who found the buyer.
seller,
• If you back out of an offer after it's been accepted.
• If you're somehow in breach of contract with paperwork you've signed with
any
them or offers you're making.
https://www.forbes.com/sites/forbesrealestatecouncil/2018/06/06/first-timer-faq-how-do-real-estate-commissions-work/#316b6e433894 4/5
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018
9/12/2018 First-Timer
FAQ: How Do Real EstateCommissions Work?
NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019
The most important thing that you'll do is read every contract carefully before
signing. That way, you'll have a solid idea of your expectations and obligations
from the get-go.
Forbes Real Estate Council is an invitation-only community for executives in the
real estate industry. Do I qualify?
Director of Growth at Open Listings, developing the smartest and most efficient
way to buy a home, offering a 50% commission refund.
https://www.forbes.com/sites/forbesrealestatecouncil/2018/06/06/first-timer-faq-how-do-real-estate-commissions-work/#316b6e433894 5/5
Document Filed Date
May 14, 2019
Case Filing Date
July 14, 2018
Category
Commercial Division
For full print and download access, please subscribe at https://www.trellis.law/.
Preview
FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019 EXHIBIT 57F FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 NYSCEF DOC. 9/12/2018 NO. 456 First-Timer FAQ: How Do RECEIVED Real Estate NYSCEF: 05/14/2019 Commissions Work? Forbes CommunityVoice Connecting expert communities to the Forbes audience. What is This? 1,199 views | Jun 6, 2018, 08:30am First-Timer FAQ: How Do Real Estate Commissions Work? • Kevin Miller CommunityVoice Forbes Real Estate Council Q Real Estate POST WRITTEN BY Kevin Miller Director of Growth at Open Listings, developing the smartest and most efficient way to 50% commission refund. FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 9/12/2018 First-Timer FAQ: How Do Real EstateCommissions Work? NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019 Before entering the real estate market, one of the most common concepts that buyers and sellers have to wrap their heads around is understanding how real estate commission fees work. Since most agents aren't hourly or salaried, there can be some confusion as to how - and whom - the final bill is paid. by Becoming informed about the real estate process is the first step to becoming a homeowner, so you can feel comfortable knowing what you're paying for and exactly where your money is going. Understanding The Key Players In every real estate transaction, there are six different parties who are financially involved in the sale of a home. They are: • The seller: The person who's decided to put their home on the market. • The agent: An individual who's been hired the seller to market the listing by home and negotiate on their behalf. • The broker: This can be the agent themselves or another listing listing individual for whom the listing agent works for or whose company the listing agent works under. • The buyer: The person who's decided to the home. buy MORE FROM FORBES •The buyer's agent: The person who the buyer has hired to help them find their new home and negotiate on their behalf. • The buyer's agent's broker: This can be the agent themselves or another person for or under whom the buyer's agent works While each sale may be handled a bit differently, it's important to know that a real estate commission is one fee - a percentage of the home's typically usually https://www.forbes.com/sites/forbesrealestatecouncil/2018/06/06/first-timer-faq-how-do-real-estate-commissions-work/#316b6e433894 2/5 FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 9/12/2018 First-Timer FAQ: How Do Real EstateCommissions Work? NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019 sale price - that is split between these six individuals. This is where it gets a little tricky. First, the overall commission percentage is divided between the two brokerages. Then, each real estate agent is paid via a predetermined agreement they've made with their broker. In most cases, the agent is given a portion of the split, while the broker keeps the remainder to cover office expenses. In others, the agent is paid a flat-fee per each sale. Sometimes, the agent is given 100% of their commission and then charged a recurring bill by their broker to cover overhead costs. Phew. Still with me? How commission fees are determined Unlike many other industries, there are no set amounts for real estate commissions. They're set on a case-by-case basis for each sale, in accordance with The Real Estate Settlement Procedures Act (RESPA). While percentages are variable, you can typically expect to pay around 5-6% of the home's sale price. This amount is determined when the seller signs the listing contract with his or her agent. They will negotiate the commission fee prior to signing an agreement. Keep in mind that, in addition to eventually accounting for both agents' paychecks, part of that percentage will also go toward covering supplemental fees like marketing and paperwork costs. Once an offer has been received on a home, the listing agent and buyer's agent will negotiate amongst themselves to determine how to split the percentage of commission between them. In most cases, it will be split right down the middle. However, ifthere are mitigating circumstances, a different agreement may be reached. Who Pays Commission Fees? (And When?) This, too, is up for negotiation. Typically, the seller is responsible for paying the commission fees. These are taken care of at settlement, along with any other https://www.forbes.com/sites/forbesrealestatecouncil/2018/06/06/first-timer-faq-how-do-real-estate-commissions-work/#316b6e433894 3/5 FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 9/12/2018 First-Timer FAQ: How Do Real EstateCommissions Work? NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019 closing costs such as any municipal permits or title fees, which may be required in order to transfer the deed on the property from one person to another. However, that's not to say that the buyer gets these services entirely for free. While the seller is able to the costs for the home - in usually pay closing which the real estate commission is included - upfront from the proceeds of the sale, they usually account for these fees by asking for a higher sale price. Ultimately, the commission fee gets baked into the home price, which means that buyers end up paying the fees. In more unusual situations like short sales, foreclosures or auctions, the closing costs (and by extension the entirety of the commission fee) may be the buyer's responsibility. Each of these cases will vary, but that is one reason why it's extremely important to read all the paperwork on these sales. You need to be sure you're prepared to shoulder all of the associated fees before signing any legally binding contracts. What Happens If The Sale Falls Through? Since commission fees are handled at settlement, many people wonder what they'll need to pay if a sale falls through. In most cases, the answer is nothing. Your agent will only get paid if and when they've successfully helped you buy or sell your home. As with everything else in life, however, there are exceptions to every rule. Sometimes agents will still collect a fee from you: • If you're a and they're the one who found the buyer. seller, • If you back out of an offer after it's been accepted. • If you're somehow in breach of contract with paperwork you've signed with any them or offers you're making. https://www.forbes.com/sites/forbesrealestatecouncil/2018/06/06/first-timer-faq-how-do-real-estate-commissions-work/#316b6e433894 4/5 FILED: WESTCHESTER COUNTY CLERK 05/14/2019 05:40 PM INDEX NO. 60767/2018 9/12/2018 First-Timer FAQ: How Do Real EstateCommissions Work? NYSCEF DOC. NO. 456 RECEIVED NYSCEF: 05/14/2019 The most important thing that you'll do is read every contract carefully before signing. That way, you'll have a solid idea of your expectations and obligations from the get-go. Forbes Real Estate Council is an invitation-only community for executives in the real estate industry. Do I qualify? Director of Growth at Open Listings, developing the smartest and most efficient way to buy a home, offering a 50% commission refund. https://www.forbes.com/sites/forbesrealestatecouncil/2018/06/06/first-timer-faq-how-do-real-estate-commissions-work/#316b6e433894 5/5