The REBNY RLS Universal Co-Brokerage Agreement (UCBA) governs the behavior of member agents of the Real Estate Board of New York (REBNY) with respect to listings advertised in the RLS (REBNY Listing Service).
The UCBA does not apply to new development properties listed in the RLS. Instead, these listings are governed by a separate policy framework called the REBNY Universal New Development Brokerage Agreement (“RUNDBA”).
Click on the sections below to learn more about the most important elements of the REBNY RLS Universal Co-Brokerage Agreement (UCBA).
Estimate your seller closing costs in NYC using Hauseit’s interactive calculator, and consider Hauseit Agent Assisted FSBO to save up to 6% when selling in NYC. Buying a home? Request a Hauseit Buyer Closing Credit to reduce your buyer closing costs.
Key UCBA Provisions:
Arguably the most important component of the UCBA is its mandatory co-broking (i.e. commission sharing) provision for REBNY member agents.
As per ARTICLE IV., Section 1. Commissions (PDF pages 14 & 15 accessible here), the UCBA requires that listing agents and buyer’s agents share commissions equally:
This means that a REBNY member listing agent may not keep more than 50% of the total commission paid by a seller in the event that the buyer is represented by a broker who is a RENBY member.
For example, if a seller has agreed to pay a total of 6% commission as per a signed listing agreement and the buyer is represented, the listing agent may not keep more than 3%.
By extension, it would be a violation of the UCBA for the listing agent to keep 4% while the buyer’s agent receives 2% based on a total commission bill of 6%.
While the buyer’s agent cannot be paid anything less than 3% in this example, the UCBA does not prohibit a seller or listing agent from offering more than 50% of the total commission to the buyer’s agent. For example, the buyer’s agent can be paid 4% while the listing agent receives 2%, for a total of 6%.
If, on the other hand, the buyer’s agent is not a REBNY member, the listing agent is not obligated to share at least half of the total commission unless otherwise stipulated in the listing agreement.
Timely Submission to RLS
The REBNY RLS Universal Co-brokerage Agreement prohibits REBNY-member listing agents from ‘front-running’ a new listing by publicly advertising or showing it prior to the dissemination to the RLS. In other words, REBNY members must upload a listing to RLS simultaneously with any public advertising or showing of the property, whichever is earlier.
This is outlined in ARTICLE I. Listing Procedures, Section 5. Obligation to Distribute and Timing for Distribution of Exclusive Listings.:
This provision is designed to stop listing agents from having a head start in finding a direct buyer compared to buyer’s agents. Naturally, NYC listing agents are incentivized to find a direct buyer because typically that means that the agent will collect the entire 6% commission as opposed to just 3% in the event the buyer is represented.
Estimate your buyer closing costs in New York City with Hauseit’s Interactive NYC Buyer Closing Cost Calculator.
With few exceptions (such as 1% Full Service), sellers in NYC typically agree to a fixed total commission rate of between 5% and 6% which is payable upon closing regardless of the representation status of the buyer. The only variable is whether the listing agent keeps the entire 6% or if it’s split with a buyer’s agent.
A Full Service Listing for 1%
Sell your home with a traditional full service listing for just one percent commission.
The REBNY RLS Universal Co-Brokerage Agreement also regulates the days on market calculations for listings being marketed by REBNY member listing agents. This is an important provision, as sellers and listing agents in NYC are notorious for trying to reset the days on market to avoid the perception of a listing becoming stale.
This is outlined in ARTICLE I. Listing Procedures, Section 11. Days on Market Calculation.:
In short, an active listing’s day count may only be reset if the property is delisted for 90 consecutive days.
REBNY member agents are prohibited from directly contacting or soliciting any owner/seller who has a current exclusive listing with another REBNY member.
This is outlined in ARTICLE II. SELLING/LEASING PROCEDURES, Section 7. Communications with Owners.:
This means that REBNY member agents may not solicit a seller who has already signed a listing agreement with another agent.
