FACTS:                    

The Arizona listing offers a buyer’s broker commission via MLS.  A real estate licensee from New Mexico offered to purchase the Arizona residence.  The New Mexico licensee requested a buyer’s broker commission on the transaction.  The listing agent refused because the buyer is not licensed in Arizona.  The New Mexico licensee buyer then submitted another offer with a sales price reflecting the net price the seller would receive without paying a buyer’s broker commission.  The listing agent still believes that the offer is an attempt to circumvent the licensing statutes since the new offered price is equivalent to paying the New Mexico licensee a commission in violation of the Arizona statutes.

ISSUE:                      

Is the proposed reduced price a violation of the Arizona licensing statutes?

ANSWER:                

Probably not.

DISCUSSION:

The parties can agree to whatever is fair and reasonable under the circumstances.  In fact, mandating a specified commission be paid on every transaction is likely an anti-trust violation.  Accordingly, the transaction proposed by the New Mexico licensee to offset any potential commission is not a violation of the Arizona licensing statutes.  The parties are legally able to agree to the price offered by the New Mexico licensee buyer.