Differences between MEAS 2014 & MEAS 2018, Standard 7.
Go here to read the actual Standard 7 MEAS 2018.
Co-agency practice – Listing Agent and Co-Agent.
The major changes are:
Deletion of 7.2.4
which says the co-agent can go direct to the Principal and take over the listing after the expiry of engagement with the Listing Agent.
Now, can you as co-agent take over the listing from the Listing Agent when the listing engagement is over/expired? In this NEW Standard 7, this is silent. In the OLD Standard 7, it says upon expiry of the engagement, a co-agent can become listing agent if successfully engaged. Now, this has been removed!
Replacing OLD 7.2.4 with 7.2.5 (which is now the NEW 7.2.4)
On who to collect earnest deposit. This is important because the commission is deducted from this deposit. As a Co-Agent, you would be at risk if the deposit is kept by the Listing Agent and he might not pay you your portion!
New 7.2.4 states that the person to keep the deposit should be decided by the Client (principal). As in 7.2.4. Only the party authorized by the Client (principal) be the rightful appointed (engaged) stakeholder shall HOLD the Earnest Deposit; unless otherwise agreed in writing by the Client. This is new addition to the Standard.
As for the split of commission and how abortive/forfeited commission were to be divided, all remain unchanged.
In short, the NEW standard removed the protective clause that upon expiry of the listing agent, anyone can go direct to the Client (principal). However, this might be redundant because it is a free market so it is assumed that the OLD 7.2.4 is unnecessary.
Furthermore, NEW Standard 5 (Terms of Engagements) has new provision that it is the Client who decides to whom and when he wants to give the new engagement to. It is not the OLD agency firm to give the green light to allow another engagement to the next agent. The Client has all that power and authority to engage a new Agent, and NOT the previous Listing Agent.
