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Old 10-10-2009, 09:24 AM
 
12 posts, read 65,099 times
Reputation: 24

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I have found a house by myself and am ready to place an offer. I will be coordinating with my lawyer, home inspector and lender by myself. I could very well go through the purchase without a buyer's agent but that way the seller's agent will bag the entire 5% in commission. Is there a way I can use a buyer's agent whose role would be extremely limited during the entire transaction (as I would be doing all coordination and negotiations myself)? All he/she would do is write up a contract for me (or maybe my lawyer can do it for me) and accompany me to closing. Then from the 2.5% that he gets at closing (about 10k), we can split it so it partially covers my closing cost. The realtor would still make a few thousand for less than a day's worth of work.

I am not sure if this is legal and would certainly not do if it could be termed illegal. But the seller and seller's agent earn their fair share and its a win-win for my realtor and me.

Has anyone done this before?
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Old 10-10-2009, 09:38 AM
 
Location: East Brunswick, NJ
208 posts, read 734,032 times
Reputation: 59
This is illegal. Realtor would lose their license. It's considered a kickback.
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Old 10-10-2009, 09:45 AM
 
Location: Central New Jersey
18 posts, read 41,454 times
Reputation: 10
I've never heard of anything like that and I agree with Jillian.

The Seller's realtor would most likely draw up the Contract (or you could have your attorney, either way, it doesn't matter). The Seller's realtor could also act as dual agent wherein he/she represents the both of you.

Also, just so you know, Realtors don't always attend the closing. They'll usually pick up their check after the closing or ask that it be mailed to them.
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Old 10-10-2009, 09:52 AM
 
12 posts, read 65,099 times
Reputation: 24
How is it a kickback when my realtor pays me after closing? It is between my realtor and me. The seller gets the offered amount less 5% commission, the seller's agent gets 2.5% as outlined in the seller's contract and the buyer's agent gets 2.5% as well. After the closing is done and all monies paid, the buyer's agent gives me (the buyer) a part of the commission back. Is it really illegal?
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Old 10-10-2009, 09:58 AM
 
Location: Sierra Vista, AZ
16,114 posts, read 20,016,607 times
Reputation: 8197
Quote:
Originally Posted by sbrunswick View Post
How is it a kickback when my realtor pays me after closing? It is between my realtor and me. The seller gets the offered amount less 5% commission, the seller's agent gets 2.5% as outlined in the seller's contract and the buyer's agent gets 2.5% as well. After the closing is done and all monies paid, the buyer's agent gives me (the buyer) a part of the commission back. Is it really illegal?
It is still illegal, all money changing hands has to be done at settlement.
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Old 10-10-2009, 10:01 AM
 
12 posts, read 65,099 times
Reputation: 24
Thank you all for your feedback! I was just checking if there was a legal way around it but if not, so be it. I will proceed via a buyer's realtor.

Thanks again everyone!
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Old 10-10-2009, 01:12 PM
 
Location: Martinsville, NJ
6,150 posts, read 10,823,515 times
Reputation: 3934
In certain states it is allowed. In the state of NJ it is illegal. A Broker is not allowed to rebate any portion of their fee.
Legislation was introduced in 2006 to repeal the prohibition, but it has nbot been passed.
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Old 10-10-2009, 04:39 PM
PDD
 
Location: The Sand Hills of NC
8,776 posts, read 13,996,476 times
Reputation: 11834
Normally the listing and selling Realtors split the commission. Since only the listing realtor is involved here I would think the listing realtor should be glad the property sold and they can walk away with their 50% commission. No reason you shouldn't be able to structure the deal to reflect that. Consult your attorney. Why should you pay the listing realtor a selling Realtors commission also? Some might consider that double dipping
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Old 10-10-2009, 08:17 PM
 
Location: Martinsville, NJ
6,150 posts, read 10,823,515 times
Reputation: 3934
Quote:
Originally Posted by PDD View Post
Normally the listing and selling Realtors split the commission. Since only the listing realtor is involved here I would think the listing realtor should be glad the property sold and they can walk away with their 50% commission. No reason you shouldn't be able to structure the deal to reflect that. Consult your attorney. Why should you pay the listing realtor a selling Realtors commission also? Some might consider that double dipping
The commission belongs to the listing broker, in most cases. ALL of the commission. That broker usually offers to split it witht he buyers agent, if there is one. It's an incentive, helping him to get it sold. If there happens to be no buyers agent, that agent has every right to keep the entire commission. You may be able to convince him to take a reduced commission, which would result in the seller keeping a larger portion of the purchase price. Many agents will not reduce their commission, however, as they understand that they may be taking on more work and higher risk. Those who would consider it "double dipping" perhaps haven't looked clearly at what goes on.
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Old 10-11-2009, 09:29 AM
 
Location: New Jersey
2,060 posts, read 3,979,750 times
Reputation: 1505
Quote:
Originally Posted by PDD View Post
Normally the listing and selling Realtors split the commission. Since only the listing realtor is involved here I would think the listing realtor should be glad the property sold and they can walk away with their 50% commission. No reason you shouldn't be able to structure the deal to reflect that. Consult your attorney. Why should you pay the listing realtor a selling Realtors commission also? Some might consider that double dipping
i agree with you but since the seller's agent already has a contractual agreement with the seller that he would take the full 5% commission if the buyer does not have an agent, the only work around is to have the buyer's agent pay the buyer back after closing. i have heard of buyer's agents who used to pay up to 2k back in the good old days but not sure if it happens anymore. i would love to see the contracts changed to reflect a 2.5% discount to buyers if they represent themselves. yea..wishful thinking but absolutely rational!
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