“receive 20% of my commission”

[Coronita]

[quote=equalizer]Yes to all. Sounds like agent will offer 20% of buyers commission, 0% on sellers commission. In some states, the Realtor groups bribed the state officials to make full service mandatory for agents and commission kickbacks a crime (probably a felony with 5 year minimum mandatory sentence). This is NOT a joke.

The big agencies really hate this practice because it would degrade the profession and cause commission price wars. Cant have competition. [/quote]

This practice isn’t illegal in CA. Note though, you *may* get a 1099 at the end of the year for commission rebates.

[urbanrealtor]

All of the above are true.

A couple of other caveats:

The seller must accede to any buyer payout.

By law, they are the one paying the commission and even if a buyer was represented by a buyer agent, the seller has to approve the payout.

This can be really problematic in cases where the buyer and seller negotiations get tense or acrimonious.

Also, the rebate needs to be disclosed on the HUD statement.

If it is not, potentially the parties are acting illegally (though it may not be worth prosecuting).

[urbanrealtor]

All of the above are true.

A couple of other caveats:

The seller must accede to any buyer payout.

By law, they are the one paying the commission and even if a buyer was represented by a buyer agent, the seller has to approve the payout.

This can be really problematic in cases where the buyer and seller negotiations get tense or acrimonious.

Also, the rebate needs to be disclosed on the HUD statement.

If it is not, potentially the parties are acting illegally (though it may not be worth prosecuting).

[urbanrealtor]

All of the above are true.

A couple of other caveats:

The seller must accede to any buyer payout.

By law, they are the one paying the commission and even if a buyer was represented by a buyer agent, the seller has to approve the payout.

This can be really problematic in cases where the buyer and seller negotiations get tense or acrimonious.

Also, the rebate needs to be disclosed on the HUD statement.

If it is not, potentially the parties are acting illegally (though it may not be worth prosecuting).

[urbanrealtor]

All of the above are true.

A couple of other caveats:

The seller must accede to any buyer payout.

By law, they are the one paying the commission and even if a buyer was represented by a buyer agent, the seller has to approve the payout.

This can be really problematic in cases where the buyer and seller negotiations get tense or acrimonious.

Also, the rebate needs to be disclosed on the HUD statement.

If it is not, potentially the parties are acting illegally (though it may not be worth prosecuting).

[urbanrealtor]

All of the above are true.

A couple of other caveats:

The seller must accede to any buyer payout.

By law, they are the one paying the commission and even if a buyer was represented by a buyer agent, the seller has to approve the payout.

This can be really problematic in cases where the buyer and seller negotiations get tense or acrimonious.

Also, the rebate needs to be disclosed on the HUD statement.

If it is not, potentially the parties are acting illegally (though it may not be worth prosecuting).

[SD Realtor]

Larry you need to be more specific. Is the listing agent saying, if you use him as your agent as well he will give you 20% of his commission? Or is this an agent that will represent you the buyer on any home and he will give you 20% of his commission? Please specify.

In either case I would recommend you proceed in the following manner to reduce any exposure to taxes. Keep the rebate in escrow. That is, simply ask whichever agent who is offering this, to go ahead and reduce thier commission by the 20% they offered. They should submit a CBC (cooperating broker commission) form to the listing agent in order to do this. This will enable the seller to reduce the payout of commission by 20%. In parallel, you should have an addendum that is submitted to the seller to credit you the buyer that same amount at close of escrow for non recurring and recurring closing costs. In this manner you will not receive a 1099 from the broker.

[SD Realtor]

Larry you need to be more specific. Is the listing agent saying, if you use him as your agent as well he will give you 20% of his commission? Or is this an agent that will represent you the buyer on any home and he will give you 20% of his commission? Please specify.

In either case I would recommend you proceed in the following manner to reduce any exposure to taxes. Keep the rebate in escrow. That is, simply ask whichever agent who is offering this, to go ahead and reduce thier commission by the 20% they offered. They should submit a CBC (cooperating broker commission) form to the listing agent in order to do this. This will enable the seller to reduce the payout of commission by 20%. In parallel, you should have an addendum that is submitted to the seller to credit you the buyer that same amount at close of escrow for non recurring and recurring closing costs. In this manner you will not receive a 1099 from the broker.

[SD Realtor]

Larry you need to be more specific. Is the listing agent saying, if you use him as your agent as well he will give you 20% of his commission? Or is this an agent that will represent you the buyer on any home and he will give you 20% of his commission? Please specify.

In either case I would recommend you proceed in the following manner to reduce any exposure to taxes. Keep the rebate in escrow. That is, simply ask whichever agent who is offering this, to go ahead and reduce thier commission by the 20% they offered. They should submit a CBC (cooperating broker commission) form to the listing agent in order to do this. This will enable the seller to reduce the payout of commission by 20%. In parallel, you should have an addendum that is submitted to the seller to credit you the buyer that same amount at close of escrow for non recurring and recurring closing costs. In this manner you will not receive a 1099 from the broker.

[SD Realtor]

Larry you need to be more specific. Is the listing agent saying, if you use him as your agent as well he will give you 20% of his commission? Or is this an agent that will represent you the buyer on any home and he will give you 20% of his commission? Please specify.

In either case I would recommend you proceed in the following manner to reduce any exposure to taxes. Keep the rebate in escrow. That is, simply ask whichever agent who is offering this, to go ahead and reduce thier commission by the 20% they offered. They should submit a CBC (cooperating broker commission) form to the listing agent in order to do this. This will enable the seller to reduce the payout of commission by 20%. In parallel, you should have an addendum that is submitted to the seller to credit you the buyer that same amount at close of escrow for non recurring and recurring closing costs. In this manner you will not receive a 1099 from the broker.

[SD Realtor]

Larry you need to be more specific. Is the listing agent saying, if you use him as your agent as well he will give you 20% of his commission? Or is this an agent that will represent you the buyer on any home and he will give you 20% of his commission? Please specify.

In either case I would recommend you proceed in the following manner to reduce any exposure to taxes. Keep the rebate in escrow. That is, simply ask whichever agent who is offering this, to go ahead and reduce thier commission by the 20% they offered. They should submit a CBC (cooperating broker commission) form to the listing agent in order to do this. This will enable the seller to reduce the payout of commission by 20%. In parallel, you should have an addendum that is submitted to the seller to credit you the buyer that same amount at close of escrow for non recurring and recurring closing costs. In this manner you will not receive a 1099 from the broker.

[paramount]

You’ve got to be kidding….degrade the Real Estate profession? Is that even possible? To begin with it’s not even a profession!

[paramount]

You’ve got to be kidding….degrade the Real Estate profession? Is that even possible? To begin with it’s not even a profession!

[paramount]

You’ve got to be kidding….degrade the Real Estate profession? Is that even possible? To begin with it’s not even a profession!

[paramount]

You’ve got to be kidding….degrade the Real Estate profession? Is that even possible? To begin with it’s not even a profession!

[Author]

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