Level 3 Communications Issues Statement Concerning Comcast'sActions

William Herrin bill at herrin.us
Thu Dec 2 01:47:42 UTC 2010


On Wed, Dec 1, 2010 at 3:38 PM, Derek J. Balling <dredd at megacity.org> wrote:
> On Nov 29, 2010, at 10:25 PM, William Herrin wrote:
>> There are a couple forms of shared billing.
>
> There's a third kind you failed to mention that doesn't require equal footing of the parties. The broker.
>
> I might pay an apartment broker $X to help find me an apartment.
> In turn the apartment broker might match me up with an apartment,
> and charge the landlord $Y for a successful tenancy.

Hi Derek,

For the most part the apartment broker process doesn't work quite the
way you think. Generally he either gets a fee from you to find you the
best apartment or a fee from the landlord to find him a tenant (a "no
fee" listing). But not both. Read
http://www.nakedapartments.com/blog/broker-fees-explained/. Sometimes
the landlord will agree to cover part of the broker's fee but the
legal fiction is that the landlord is paying the renter who is paying
the broker.

Also bear in mind that apartment brokers tend to be a New York City
phenomenon where regulated rent stabilization laws and related heavy
regulation apply. They exist elsewhere but all top 20 Google hits for
"apartment broker fees" were NYC.


Let's consider a related example that's more ubiquitous than New York
City apartment brokers: the real estate agent.

The seller's agent collects a commission. So does the buyer's agent.
If they're the same person, they get both commissions. Right?

http://homebuying.about.com/od/glossaryd/g/DualAgency.htm

"Dual agency is not legal in all 50 states."

http://homebuying.about.com/od/realestateagents/qt/92807_DualAgncy.htm

"Dual agency must be agreed to in writing between [all three] parties."


The problem with dual agency is it's a classic conflict of interest.
That's why both buyer and seller have to agree to it and go in
eyes-wide-open, even where it's legal. What's more, in the highly
competitive real estate market, savvy buyers know it's time to apply
the screws -- the agent will earn more money even if he takes a big
hit on the buyer's commission.

Kinda the opposite of the monopoly/duopoly ISP who doesn't seek your
permission in dealing with anyone else.

Finally, realize that in both cases (real estate agent and apartment
broker) you're dealing with a competitive negotiated process. The law
allows -many- things in negotiated contracts that are flat illegal in
the contracts of adhesion typically offered to the residential
Internet buyer.

Regards,
Bill Herrin



-- 
William D. Herrin ................ herrin at dirtside.com  bill at herrin.us
3005 Crane Dr. ...................... Web: <http://bill.herrin.us/>
Falls Church, VA 22042-3004




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