We now have confirmation that all of the existing MYG agreements will have to be amended.
The amendments will, at least, remove all references to Klein Group and brokerage cooperation.
This was a decision made by the Managing Broker of ReMax.
What other changes he will require to the agreements are as yet unknown, but the agreement put together at the instruction of the APSC with MYG, and input from Ed Wilson, will be changed.
It turns out that the MYG agreement was never reviewed by ReMax lawyers. MYG never took the trouble to have it reviewed. Clearly, the new managing broker identified several major flaws and is requiring that the agreement be amended.
It turns out the Klein Group was also correct on the insurability of the “cooperating brokerages” scenario promoted by MYG and Ed Wilson – it is not insurable.
Further, contrary to Ed Wilson's representations, the standard insurance realtors carry is not nearly sufficient for a transaction of this nature. Remax is going to have to purchase very significant insurance, again as pointed out correctly by Klein Group.
The good news for those owners signed with MYG is that they now have a chance to reconsider whether or not they made the correct decision.
Many people may have signed with MYG based on the promoted reputation of Ed Wilson.
His advice at this point seems to have been less than accurate, certainly as to a few of the things included in the Listing Agreement.
There are business, economic and political risks looming on the horizon. T
he best solution for all owners is to avoid splitting our interests.
Despite the negativity that some have projected onto Klein Group, it appears that the advice they have given has, from the beginning, been correct.
That is something to consider now that the opportunity for re-evaluating your brokerage choice.
When we have a chance to review whatever new agreement MYG ends up using, there may be additional points of concern to identify.
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