Some agent lately give discount up to 2% out of commissioin
2007-06-13 03:19:08 · 6 answers · asked by Colu Colu 1 in Business & Finance ➔ Renting & Real Estate
Yes, it is legal. However, most lenders will only allow the buyer to receive a total credit of between 3% and 6% towards their closing costs and/or prepaid items. Therefore, if only a 3% credit is permitted on the transaction and the buyer was receiving a credit of 3% from the seller to pay for the majority of the closing costs, the lender would absolutely not allow another credit from the Realtor in the amount of 2%. Therefore you need to check with the lender to make sure you are not exceeding the credit limit allowed by the lender.
2007-06-13 03:44:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Welcome to the new world of real estate. Yes this practice is done quite frequently. In my state, Georgia, it is a violation of license law and ethics for an agent to give a buyer a cash refund at closing, but a discount can be accounted for in the HUD statement as a credit towards items such as closing costs, escrows etc. As long as the lender signs off on it as not a mortgage fraud issue, it is allowed and practiced. Unfortunately agents that use this tactic either do not stay in business for any length of time or only offer discounted service. In other words the buyer will be the person doing most, if not all, the work locating properties and the agent merely shows a few properties the buyer is interested in and acts as a scribe in filling out documents. Buyer beware.
2007-06-13 03:38:25 · answer #2 · answered by Patrick D 1 · 0⤊ 0⤋
Yes, it is legal. I encounter this practice regularly. Not my favorite thing to do, since I feel that my firm and I deserve what we charge, given the expense and work we put into procuring a buyer.
But, in a nutshell, it is legal.
2007-06-13 03:24:21 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
phone your manager and ask how you can write this.
the manager/broker ..
they know the rules on how he wants this written..
but it is a yes..it is not a "commission" but a gift of cash in lieu of a "welcome gift"..
so probably something to help with closing or towards a new fixture..
some love a "cake,bottle of wine, and plant" other love "cash"
good luck..
2007-06-13 04:26:38 · answer #4 · answered by m2 5 · 0⤊ 0⤋
Yes. They don't have to cut their commission but they can cut yours. Been there and done that. That's why I am out of sales.
2007-06-13 03:25:44 · answer #5 · answered by Suzie 3 · 0⤊ 0⤋
AS PER RULES OF LIC OF INDIA IT IS ILLEGAL TO GIVE OR OFFER ANY COMMISSION TO CLIIENT .
2007-06-13 03:33:32 · answer #6 · answered by lic50 1 · 0⤊ 0⤋