IS NEUTRAL FOR YOU?

The decision about whether you want to authorize or preauthorize a neutral relationship with your real estate licensee in transactions where the licensee is working with the other party is strictly up to you, under the law. Some licensees have their own policies - they'll only work with clients who authorize neutral, or they won't do neutral. If their policies don't work for you, the law allows you to choose another licensee, because licensee relationships should be established, with the decision about neutral settled in writing, before you enter into any contracts. Remember the licensee disclosure (aka consumer pamphlet) is not a contract; it does not bind you to a particular licensee.

There may be advantages to having one licensee working both sides of your transaction. He or she will know each party's situation and can facilitate negotiations based on that knowledge. And sadly, a bad licensee (unfortunately, there are some) on the other side of the transaction can create unnecessary complications and tensions. Under the old adage that the best way to get something done is to do it yourself, many licensees would prefer to have both sides of a transaction, especially since they get paid for both sides. That usually means twice the commission for the licensee. Some offer a commission discount if they handle both sides; others (myself included) don't like the temptation that presents to exclude the clients of other licensees in what could potential be a better deal in the long run.