Owner/broker use of agents

[witeout]

What is the name of your state (only U.S. law)? Michigan

Thank you to any or all whom have some insight.

Can an owner/broker use it's agents to list/sell homes under their name to prevent the agent from having record of listing/selling homes to hide income for the agent?

There seems to be ethical issues or code violations of a bait and switch during the house buying process if you're using an agent and then all the paperwork and such is of the broker/owner.

Regards,

witeout

 

[FlyingRon]

If you mean by hiding income in that the money is given to the agent in such a way that the income is not reported to the IRS, it most certainly is illegal.

As for the rest, you're going to need to explain what you are talking about. Properties are frequently listed under broker's name, regardless of which agents are working it.
Presumably the agents have an agreement with their brokerage as to what the compensation will be.

 

[witeout]

If you mean by hiding income in that the money is given to the agent in such a way that the income is not reported to the IRS, it most certainly is illegal.

As for the rest, you're going to need to explain what you are talking about. Properties are frequently listed under broker's name, regardless of which agents are working it.
Presumably the agents have an agreement with their brokerage as to what the compensation will be.

I agree, the hidden income is illegal. Thank you. I know why the owner/broker/agent have gone the route of hiding the agents income and that is being reviewed on how to best tackle that.

As for the other part - it seems as though you have answered my question. The homes are listed under the broker but said agent does all the leg work to list/sell the home. Besides the reasons of wanting to hide income, why would an agent not want to have record of homes sold/listed? Isn't that record a selling point to gain customers? No need to answer those last two...just thinking out loud as to why a legit agent would want to have a contract that way.

 

[FlyingRon]

It's the way it is done. The agreement to sell the property is almost always between the OWNER and the BROKERAGE. This is why things are listed as they are. The contract that obligates the commission is between those two parties. The fact that the AGENT may have worked on it and is due some money for the sale doesn't chagne that.

 

[PayrollHRGuy]

Who are you in this drama? Are you an agent, buyer or seller?

 

[Zigner]

I agree, the hidden income is illegal. Thank you. I know why the owner/broker/agent have gone the route of hiding the agents income and that is being reviewed on how to best tackle that.

As for the other part - it seems as though you have answered my question. The homes are listed under the broker but said agent does all the leg work to list/sell the home. Besides the reasons of wanting to hide income, why would an agent not want to have record of homes sold/listed? Isn't that record a selling point to gain customers? No need to answer those last two...just thinking out loud as to why a legit agent would want to have a contract that way.

How is it any of your business? The chances are that no income is being "hidden". Why are you so eager to stir up a non-existent issue?

 

[witeout]

Who am I in this? - I am nobody, just somebody who is getting the ducks in a row.

Why is it my business? - Child support is calculated per income of each parent...parent/agent is hiding income so they can receive maximum support.
Why am I curious about the owner/broker activity? - Because owner/broker is aiding in the hiding income for agent. Not only to help in gaining maximum child support but said agent is also on social security disability.

 

[justalayman]

What is the name of your state (only U.S. law)? Michigan

Thank you to any or all whom have some insight.

Can an owner/broker use it's agents to list/sell homes under their name to prevent the agent from having record of listing/selling homes to hide income for the agent?

There seems to be ethical issues or code violations of a bait and switch during the house buying process if you're using an agent and then all the paperwork and such is of the broker/owner.

Regards,

witeout

Huh?

All sales by an agent are actually sales of the brokerage. An agent has no authority to broker a sale independently of their registered broker. In fact you cannot hold an active license without having a broker affiliation.

Typically an agent is given the authority to act on behalf of the brokerage. An agent signing their name to a contract is effectively followed by: on behalf of [brokers name].


How the agent is paid is a contract between the broker and the agent. It has nothing to do with who signed what documents for a given sale.

Obviously if the brokerage pays an agent it must be recorded accurately. Failing to do so gets serious very quickly as if nothing else, it results in tax fraud.

I’m the end the broker is legally responsible for the acts of his agents so I’m not sure what your issue is. Is there a problem in some transaction you’ve entered into where it would matter whether the broker or agent signed any given document?

 

[Zigner]

Huh?

All sales by an agent are actually sales of the brokerage. An agent has no authority to broker a sale independently of their registered broker. In fact you cannot hold an active license without having a broker affiliation.

Typically an agent is given the authority to act on behalf of the brokerage. An agent signing their name to a contract is effectively followed by: on behalf of [brokers name].


How the agent is paid is a contract between the broker and the agent. It has nothing to do with who signed what documents for a given sale.

Obviously if the brokerage pays an agent it must be recorded accurately. Failing to do so gets serious very quickly as if nothing else, it results in tax fraud.

I’m the end the broker is legally responsible for the acts of his agents so I’m not sure what your issue is. Is there a problem in some transaction you’ve entered into where it would matter whether the broker or agent signed any given document?

The OP is trying to sniff out income that s/he feels the other party is hiding that should count towards child support.

 

[FlyingRon]

Unless the broker is operating illegally (nothing yet shows that they are), any money paid to the agent is going to be accounted for (after we get past a rather trivial threshold). It's going to be reported to the IRS as an payment or income. I suspect given Zig's amplification, that she's probably going to be disappointed in the fact that the agent doesn't really get 6% of the sales price of the house.

 

[witeout]

My sniffing already turned up hidden income and that was prior to said agent becoming an agent but working for the same brokerage. It was just surprising that after multiple years of being an agent, there has not been one record of a home sold or listed by said agent. Like I said, when said agent goes looking for more support for which they will, I just researching to make sure I am versed in the workings of the business relationship between broker and agent. I do appreciate all the feedback.

 

[Zigner]

My sniffing already turned up hidden income and that was prior to said agent becoming an agent but working for the same brokerage. It was just surprising that after multiple years of being an agent, there has not been one record of a home sold or listed by said agent. Like I said, when said agent goes looking for more support for which they will, I just researching to make sure I am versed in the workings of the business relationship between broker and agent. I do appreciate all the feedback.

To paraphrase:

It's not what you think you know, it's what you can prove.


Best of luck to you.

 

[PayrollHRGuy]

My sniffing already turned up hidden income and that was prior to said agent becoming an agent but working for the same brokerage. It was just surprising that after multiple years of being an agent, there has not been one record of a home sold or listed by said agent. Like I said, when said agent goes looking for more support for which they will, I just researching to make sure I am versed in the workings of the business relationship between broker and agent. I do appreciate all the feedback.

Out of curiosity, where are looking up this record of what agent/broker sold homes?

 

[justalayman]

My sniffing already turned up hidden income and that was prior to said agent becoming an agent but working for the same brokerage. It was just surprising that after multiple years of being an agent, there has not been one record of a home sold or listed by said agent. Like I said, when said agent goes looking for more support for which they will, I just researching to make sure I am versed in the workings of the business relationship between broker and agent. I do appreciate all the feedback.

Recorded Listings or sales is only part of the situstion. The broker is either paying the guy or not. If so, for his best benefit he best be recording such payments and reporting such to the irs. Not all agents earn money directly from listing or selling properties



And how are you even privy to the records where such information would be held?

 

[HRZ]

I have no doubt that an agent working for a friendly brokerage can arrange to get fewer sales or listings. credited to his account, lower 1099s et al .....it's going to take a bit of digging and or finding loose lips or loose fingers but odds are its there ....unless your EX lives on basis of his good looks and charm.....many agents are 1099 contractors not employees .and from brokerage standpoint if $25,000 Commission was earned , it's probably not a big deal if Sally gets credit for Sams deals per Sam ....OP ..you need more insight into how that brokerage operates ...