U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-21-2008, 05:45 PM
 
26,863 posts, read 42,026,216 times
Reputation: 15119

Advertisements

Are realtors allowed to share their commision with a buyer? I friend of mine who is a realtor told me that it is (In Florida) not allowed to do so and there are penalties against a realtor doing so. Is this true? If so why can a realtor split the 6% with a buyers agent and not with a buyer or seller?
What can you do if a realtor has given you a paper to sign so a buyer knows that the realtor will disclose all he knows about the transaction and he doesn't, and that the realtor will act fair and honest, what if he doesn't, and you find out. Is there anything you can do?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 02-21-2008, 06:50 PM
 
Location: The Big D
14,872 posts, read 38,980,320 times
Reputation: 5787
Quote:
Originally Posted by bentlebee View Post
If so why can a realtor split the 6% with a buyers agent and not with a buyer or seller?
?
The commision split is in the contract between the realtors and they get their check from the title company and it is reported to the IRS as an income. The realtor then has to report it on their taxes and pay income tax on it.

I've known of sellers/buyers that expect the realtor if it is a good friend/relative is involved they almost EXPECT some kind of kickback but they sure don't want to claim it on their taxes as an income. The realtor HAS to report their entire commission as an income even IF they do give a kickback.

FYI: the realtor does NOT get the entire 6% or 3%. The broker gets their portion of that and then the realtor gets theirs.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2008, 06:52 PM
 
26,863 posts, read 42,026,216 times
Reputation: 15119
Quote:
Originally Posted by momof2dfw View Post
The commision split is in the contract between the realtors and they get their check from the title company and it is reported to the IRS as an income. The realtor then has to report it on their taxes and pay income tax on it.

I've known of sellers/buyers that expect the realtor if it is a good friend/relative is involved they almost EXPECT some kind of kickback but they sure don't want to claim it on their taxes as an income. The realtor HAS to report their entire commission as an income even IF they do give a kickback.

FYI: the realtor does NOT get the entire 6% or 3%. The broker gets their portion of that and then the realtor gets theirs.
I know they have to share with their broker, but I would like to know what happens if a realtors put in writing that he will share the commision with a non licensed person. Is this allowed and what can you do if not?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2008, 06:57 PM
 
Location: Nine Mile Falls/Spokane, WA
1,003 posts, read 4,548,974 times
Reputation: 799
Realtors can offer a credit from their commission shown on the closing statement towards the buyer's closing costs (with their broker's approval). It's not the same as sharing the commission, it's more like a concession of a portion of the commission. I usually only do this when it's a repeat customer or a client who sends me lots of other referrals. It can only be given to a party named on the purchase & sale agreement - you can't give part of a commission to an outside party.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2008, 06:58 PM
 
Location: Gorham, Maine
1,926 posts, read 4,685,832 times
Reputation: 1394
It varies by state. Some advertise a rebate but then state that the money is not coming out of the transaction.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2008, 08:58 PM
 
Location: Salem, OR
14,702 posts, read 35,576,072 times
Reputation: 14555
Ugh, I answered this on another thread but all but 12 states allow rebates back to buyers or sellers on a transaction. Oregon does not allow them, but there is a list on the DOJ website of what states allow them.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2008, 11:27 PM
 
Location: Ballwin, MO
366 posts, read 1,629,552 times
Reputation: 226
I answered this on another thread as well. It's allowed as long as the cash back or an agreed amount bargained between agent and client is negotiated AFTER the contract has been written. Like Greatday mentioned, this does have to be on the closing statement. You cannot use the payback as an incentive to get the client. I know that here in Missouri, we can't offer anyone an incentive to give or refer us business.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-22-2008, 10:00 AM
 
930 posts, read 2,251,279 times
Reputation: 1000
Regardless of the state laws....they can give you a REALLY nice early Christmas present
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-22-2008, 10:03 AM
 
69,360 posts, read 58,524,999 times
Reputation: 9372
Quote:
Originally Posted by bentlebee View Post
I know they have to share with their broker, but I would like to know what happens if a realtors put in writing that he will share the commision with a non licensed person. Is this allowed and what can you do if not?
Around here, I see brokers offering buyers cash incentives to go through them (through a kickback) so I would assume that it varies by state and that anyone who offers such, has to walk a fine line to stay legal.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-22-2008, 11:08 AM
 
Location: North Pittsburgh
353 posts, read 1,603,508 times
Reputation: 154
Once the Realtor RECEIVES his part of the commission after the closing, he can do anything he wants with it.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top