Proper commission forms for use with a For Sale By Owner

Question:  What are the proper forms to use when selling an Unlisted property?

Answer:  If your are representing a Buyer and the Seller agrees to pay a commission to the Buyers Brokerage,  but doesn’t necessarily want representation, use form 8B, FOR SALE BY OWNER COMMISSION AGREEMENT AND AGENCY DISCLOSURE.  If the Seller DOES want representation and there is no listing, then use form 56, SINGLE PARTY COMPENSATION AGREEMENT & AGENCY DISCLOSURE.  This form under section 4 specifically details agency.  This will allow an agent to represent a Seller only, with Buyer being represented by another Agent and Brokerage, or Agent can represent  both Seller and Buyer as a limited agent, or TWO Agents within the same Brokerage as Limited Agents.

Obviously, you can also collect a commission by using the EXCLUSIVE BUYER BROKER COMMISSION AGREEMENT, as long as your Buyer agrees to pay it.  This would be used in the event a Seller is not willing to pay a commission.

As to all forms, read carefully so you understand the best document for your situation.