Realtors that pay some of the commission to the buyer

[Broker Dave]

As of January 1 all rebates paid to a buyer must appear on the HUD either as part of the transaction or POC (paid out of closing), period.

Another change to HUD Rules & Regs relates to Mortgage Brokers, they now must disclose everything about the loan as it relates to them.

Hope this helps,

[cfIfan]

This is absolutly correct, and in these cases I would take the client out to dinner. Im not entirely sure why an agent would even offer under any circumstances the seller a rebate. I used to offer buyers a rebate where it would allow, but would never offer a seller a rebate.

In respect of Broker Dave, my wife was telling me all about this and from what she tells me, my understanding is that the new RESPA rules which have come in or are being introduced are going to require people to be really on their toes. My wife was telling me that page 3 of the new HUD will have a mini GFE comparing what was on the GFE and what was on the actual HUD, and if any of the fees which affect the TIL change, the lender can be forced to redisclose and delay the closing.

Originally Posted by AONE

You can not kick anything back to the owner of a short sale. If you do so it is loan fraud and a jailable offense but on the buyer side you absolutely can. If you are taking something under the table it is not an honest transaction. I have had lenders come to the agents to make the deal work. In fact, I recently closed a $400k short sale home both agents gave a concession to the buyer to make the deal work and of course it was on the HUD.

If you take it under the table yes indeed you are being taxed for it, but you are also likely doing something illegal, hence the need to cover it up. I suggest your license is not worth the risk nor are the penalties if caught... remember it is your brokers license at stake as well.

Gifts to clients...Great service, help them move, make them dinner on moving day, a Lowes gift card, a welcome mat for the front door, only $25 is deductible. You can spend more but keep it reasonable

I just found a $5000 error on a HUD for my client... now there is a gift!

[ginner]

i know realtors that give money back to buyers, they also pay a commission to someone that sends them a buyer who buys.

i thought they all do that????


ginner

[Broker Dave]

ginner,

Are you sure about that last statement?

Can you send me the agents name, maybe they don't understand or have forgotten the law, i don't go for anyone who breaks FREC Rules & Reg's!