can agent share commission with buyers?

Status: Open
Nov 28, 2012 Views73,393 Answer a Question

Asked by
Consumer
Categories:
General
About 11 months ago
You have several ways to do so. The most common is to offer a portion of your commission towards closing costs, repairs etc. You cannot give them cash back though
About 11 months ago
There are many strategies that agents can use to support their clients goals and transactions. Generally this is accepted and not prohibited in Texas. Another strategy agents may use is to let the client know that commission percentages are fully negotiable as well.
About 11 months ago
In Houston, Texas, real estate agents are generally allowed to share their commission with buyers. It's best to discuss this directly with your agent to determine if it's a possibility in your particular situation.
source:
HAR, NAR
About 1 year ago
Real estate agents are generally allowed to share their commission with buyers. It is important to check with the relevant real estate regulatory body in your area to ensure that you are following the appropriate laws and regulations.
About 1 year ago
Yes. Some agents do it if they feel the deal might fall through and the buyer is needing just a little more to buy the house. Again, the broker has to agree to this as the listing is the brokerages.
About 1 year ago
According to the Texas Real Estate Commission (TREC), a licensed broker may not offer a rebate or compensation that exceeds the broker's commission received from the seller or landlord. The rebate must also be disclosed in writing to the seller or landlord before the transaction is completed.Additionally, TREC regulations require that rebates or commissions shared with buyers must be disclosed on the contract or other written document that is provided to the buyer. The disclosure must indicate the amount of the rebate or commission, who will receive it, and the conditions under which it will be paid.In summary, real estate agents in Texas are allowed to offer rebates or share their commission with buyers, but they must comply with TREC regulations and disclose the terms of the rebate in writing.David Smith Managing BrokerBlok & Blvd Realty(281) 732-3090david@blokblvd.com
source:
https://www.trec.texas.gov/article/tips-rebates-referrals%C2%A0and-other-promotions%C2%A0
About 1 year ago
No! "The Real Estate License Act (TRELA) prohibits brokers from sharing fees received for services as a real estate agent with anyone not licensed as a real estate broker or salesperson in Texas or any other state."
source:
www.texasrealestate.com
About 1 year ago
Is not really a share, called it ... agent can contributed to buyer at closing to help buyer with anything for the purchased transaction. This can be done by informing the title and fill out in your CDA of how much of your commission you want to contribute to the buyer at closing, so you don't pay taxes on the amount you contributed to buyers and did not put in your pocket.
About 1 year ago
As long as disclosed with buyer and seller, it should be fine.
About 1 year ago
Yes! The Realtor is able to share the commission with the buyer and it does need to be disclosed.
About 3 years ago
It depends on your broker, but yes.
About 3 years ago
Yes, the buyer's agent can share his commission with the client. If you have any question, please call me I can help.
About 6 years ago
Dear Lisa

Yes buyers agent can share commission with buyers. The buyer agents broker should be in agreement with the rebate If the house is paid by loan; the lender need to be informed and the rebate amount need to be within the rebate limits of the laon type.

Regards,

Cagdas Acar
Msc, PSA, Realtor
832-283-1091
acarster@gmail.com
www.har.com/cagdasacar
About 8 years ago
I noticed you haven't closed out your question and wanted to provide you with an updated answer. It is still acceptable for REALTORS to "rebate" a portion of their commission to their buyer clients so long as it does not go over the acceptable amount specified to qualify for the type of loan the buyer is applying for. A REALTOR and the buyer client should both be sure that the lender knows the amount of the rebate so that he/she can make sure the amount is acceptable for the loan. Also, there is no longer a "HUD-1," it has now been replaced with the "closing disclosure." ALL commissions, rebates, and monies must be stated on this disclosure. If you have any further questions feel free to reach out to me anytime 346-412-6603 codysellsproperty@gmail.com
About 8 years ago
Yes, Texas agents can rebate (not "share") commissions. In the last 2 years I have personally rebated over $64,000 in commissions to my buyer clients. Per the Texas Real Estate Commission's website: "It is not a violation of TRELA [The Real Estate License Act (Texas)] or the Rules for a license holder to rebate a portion of the license holder’s commission to a party to a real estate transaction..." (http://www.trec.state.tx.us/faq/faq-enf.asp#Cat29). The US Department of Justice advises consumers that rebates can make buying a home less expensive and benefit consumers by helping to increase competition (http://www.justice.gov/atr/rebates-make-buying-home-less-expensive). Only 10 states still prohibit rebates and the DOJ is working on them to reverse their stance on rebates. In 2005 the DOJ successfully sued the Kentucky Real Estate Commission to allow rebates. Very few agents offer rebates. Those few agents who do generally offer their services only to buyers who are prequalified for financing and have already identified the home(s) they want by researching MLS listings themselves at websites like HAR.com, Trulia.com, Zillow.com, and Realtor.com. In other words, rebating agents offer a value proposition that corresponds well to the needs and mentality of the growing group of consumers who are willing and able to find their next home online themselves.
About 8 years ago
Yes, A Buyer's Agent can share his commission with their Client. It can be paid on the HUD 1 at closing or paid outside of closing. It is a way of reducing the price of services to a Client. I have been doing it for over 10 years.There is much misinformation and myths on this subject and the Texas Consumer has suffered for it.
About 11 years ago
Yes. The buyer's agent can contribute a portion of their commission to the buyer but it absolutely must be shown on the HUD-1 and it must be acceptable to the buyer's lender.
About 11 years ago
yes they can,but why would they want to. Do you like to give up your pay?
About 11 years ago
After the DOJ ruling a few years ago, an agent my share his/hers commission with a buyer or seller. In most cases it has to be noted on the HUD-1 and disclosed to all parties. If the buyers loan company does not want it on the HUD-1, you may be able to give your client money after the closing. You, as an agent then MUST send the client a 1099M at the end of the tax year.

Some Brokers will still charge you the split amount on the full amount and not the discounted amount. So be sure to talk to your Broker about the office policy before you start offering a rebate to your clients.
About 11 years ago
In Texas they can, but only to the principal buyers involved. Not any third parties.
About 11 years ago
ALL monetary credits to a buyer in a real estate transaction must be listed on the HUD-1 and disclosed to the buyer's lender.
Also, a Realtor needs to be careful that they do not violate the Realtor Code of Ethics Article 16 Standards of Practice 16-16 and 16-17 when attempting to modify the offered compensation. Any modification of an offered compensation requires the approval of the listing agent's sponsoring broker and also the approval of the buyer's agent's sponsoring broker. Listing agents and buyers agents must abide by the policies forth by their sponsoring brokers.
About 11 years ago
short answer is yes if the buyers lender will allow it and knows about it and if the Agents Broker will allow it and knows about it.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
Advertisement
Find a Local Expert Real Estate Agent in your Area
Start your real estate search the right way by finding the best agent to work with in your area.

Related Questions