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Once the Realtor RECEIVES his part of the commission after the closing, he can do anything he wants with it.
I put 10% in a I'll take care of it (slush) fund to take care of *anything* that comes up after closing. Like trash removal, new appliances, a new light fixture, carpet cleaning. I actually went to sears and bought the new buyers the fridge, washer & dryer once. They closed from out of town, and the seller's *stole* the included appliances. [Yes, I did the walk through prior to closing and they were there, but after closing, I let the cleaning crew in and they were gone!]
Whatever keeps them happy; I am RWA (ready willing & able) to do.
I am in Tennessee... It is illegal in Tennessee for Realtors to give back a portion of a commission to a client. It is also illegal for anyone without an active real estate license to receive a fee for selling real estate. There are some states in which it is legal for a Realtor to give back a portion of commission, but not before declaring it as earned income for tax purposes.
As far as a Realtor's ethics... you can speak directly to the agent, you can contact their broker, you can also file complaints with your state and local boards of Realtors. If I were you, I would speak directly with the Realtor and find out exactly what the story is. If it is something that caused you damage or harm, you may want to speak to an attorney as well.
I'm sure it's the same in most or all states. An unlicensed person cannot legally receive a commission.
If they do receive a commission, they've held themselves out to acting unlawfully in the real estate business and in NM they are now accountable to the real estate commission. After receiving their punishment (if ever caught, never likely) they can lose any chances of ever getting a real estate license if they ever wanted one.
Once the Realtor RECEIVES his part of the commission after the closing, he can do anything he wants with it.
The real estate agent may not pay an unlicensed person any portion of the commission they recieved as a result of a real estate transaction.
I believe that, in all states, if they do, license revocation is a strong possibility. Also, in most states, the unlicensed person, who recieved the commission, can also be prosecuted.
The real estate agent may not pay an unlicensed person any portion of the commission they recieved as a result of a real estate transaction.
I believe that, in all states, if they do, license revocation is a strong possibility. Also, in most states, the unlicensed person, who recieved the commission, can also be prosecuted.
I said: "After the Realtor RECEIVES his portion of the commission from the real estate transaction, he can do what ever he wants with it.
You said:
"The real estate agent may not pay an unlicensed person any portion of the commission they recieved as a result of a real estate transaction.
I believe that, in all states, if they do, license revocation is a strong possibility. Also, in most states, the unlicensed person, who recieved the commission, can also be prosecuted."
What do you do with the commission dollars when you receive it - Pay bills, go out to dinner, buy goods and services for yourself - your paying unlicensed people a portion of your commission dollars as a result of a real estate transaction.
What you can't do is make a contract stating that a portion of your commission will given to whomever upon the completion of the sale.
I said: "After the Realtor RECEIVES his portion of the commission from the real estate transaction, he can do what ever he wants with it.
You said:
"The real estate agent may not pay an unlicensed person any portion of the commission they recieved as a result of a real estate transaction.
I believe that, in all states, if they do, license revocation is a strong possibility. Also, in most states, the unlicensed person, who recieved the commission, can also be prosecuted."
What do you do with the commission dollars when you receive it - Pay bills, go out to dinner, buy goods and services for yourself - your paying unlicensed people a portion of your commission dollars as a result of a real estate transaction.
What you can't do is make a contract stating that a portion of your commission will given to whomever upon the completion of the sale.
If a licensed real estate agent has made a verbal agreement with a non-licensed individual to give them money or goods in exchange for a referral, it is illegal. One can play with semantics and find ways to attempt to get around the law, but that doesn't make it legal.
I'm not quite sure what you're asking capt, but if you're talking about an agent giving back part of their commission to their client, that can be done as long as it's in the HUD as a discounted commission to assist with closing costs. That's legal as long as it's in the HUD-1.
I'm not quite sure what you're asking capt, but if you're talking about an agent giving back part of their commission to their client, that can be done as long as it's in the HUD as a discounted commission to assist with closing costs. That's legal as long as it's in the HUD-1.
Come on...cash buyers don't have HUD 1s...
You guys really need to get together on your story...you are claiming that states will lift your ticket for violating a federal financing requirement?
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