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I am very new to the short sale process. My cousin is trying to buy a short sale property in Texas and I am his real estate agent. I would like to help him out by giving him my total commission as closing cost credit. Can I do this? And if so, when and how do I do this? Do I have to write an addendum or can I wait till the bank responds with the accepted offer?? When and how do I assure that my buyer (my cousin) receives this closing cost credit? Please help!!!!
I am very new to the short sale process. My cousin is trying to buy a short sale property in Texas and I am his real estate agent. I would like to help him out by giving him my total commission as closing cost credit. Can I do this? And if so, when and how do I do this? Do I have to write an addendum or can I wait till the bank responds with the accepted offer?? When and how do I assure that my buyer (my cousin) receives this closing cost credit? Please help!!!!
Talk to your broker. They will have all the applicable LAWS, as well as the appropriate company POLICIES.
No (I believe) the title company needs good funds. I bring a Money order to closing and have them show it as "Realtor Contribution" on the HUD. The commission is due your broker and paid after closing.
Best thing to do is talk to the title company and have them talk to the Lender to OK. They may do it straight from your commission as a credit.
Yes, you can do a buyer's credit on the HUD in Texas. I do it all the time when I get a referral from a licensed agent and the referral is a relative and they want the money given to them. It needs to be approved by the lender if it's an FHA/VA loan, so it has to be part of the contract. A buyer is only allowed so much percentage for closing costs contributions. On a conventional loan, most lenders don't care about it being in writing, but some do. You just put it on your commission breakout from your broker.
I did it when I bought my first and second house as well. The third, we just took it off the price.
I would never bring a Money order or cashier's check for them as then I have to pay taxes on an amount I'm not getting as income. Self employment taxes are ridiculously high.
And your broker is an important part of this question. They will probably require some of the commission to be paid to cover their portion of overhead.
And your broker is an important part of this question. They will probably require some of the commission to be paid to cover their portion of overhead.
Yes I would expect that the split/desk fees still need to be paid.
Have you disclosed in our contract that you are related to the Buyer ? I usually do it under our special provisions. Hopefully that's not a problem to the SS lender.
I would never bring a Money order or cashier's check for them as then I have to pay taxes on an amount I'm not getting as income. Self employment taxes are ridiculously high.
In this situation, FHW is correct. It's better to never have the income unless you are on some type of plateau system with your Broker.
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