Buyer's agent co-op commission question

[RE Skeptic]

Originally Posted by Captain Bill

I don't ask for discounts...

But you do negotiate. Tomato, tomoto..

1k words a day for you should be no problem, you had 750 in this post alone!

[venicebeachcalifornia]

Originally Posted by Rakin

Be sure and put your agreement in writing and not just a handshake. My next door neighbor did this with a "Friend" and the friend ended up saying "Up yours".

You will probably get a 1099 and need to pay taxes on any income.

I'm not a lawyer by training. Is there any standardized agreement that an agent should have handy for handling the rebate between the buyer and the agent? What can I do to get my rebate if the agent refuses to honor the agreement after getting his co-op paycheck from the builder?

[Rakin]

Originally Posted by venicebeachcalifornia

I'm not a lawyer by training. Is there any standardized agreement that an agent should have handy for handling the rebate between the buyer and the agent? What can I do to get my rebate if the agent refuses to honor the agreement after getting his co-op paycheck from the builder?

The builder is a 3rd party and will not get involved with a dispute between you and an agent. His obligation is to pay the agent. You could do a simple document that is an agreement between you and the agent. Just make sure it says your wishes and get both parties to agree and sign.

My neighbor took his agent to court and lost because it was a verbal agreement and purely he said / she said. It was an expensive home and cost him a bunch of money.

Kind of made me smile some what. I was his agent but he hired her because of the rebate that she screwed him out of. I specialize in new homes and would have done him a much better job building.

Some people get greedy and it costs them in mistakes. He would have made much better decisions without his "Rebate agent".

[marksmu]

Originally Posted by venicebeachcalifornia

I'm not a lawyer by training. Is there any standardized agreement that an agent should have handy for handling the rebate between the buyer and the agent? What can I do to get my rebate if the agent refuses to honor the agreement after getting his co-op paycheck from the builder?

You dont have to be a lawyer by training to handle that correctly - it just needs to be in writing, clearly enunciating what it is you are agreeing to, and signed/dated by both parties.

A contract merely needs an offer (I will use you if you rebate commission), acceptance (his communication of agreement), be for a legal purpose (check with state laws), Consideration (he gets something for his services) and be in writing, signed by both parties and performance....there is no requirement that it be dated, but ALWAYS date everything.

A statement such as this: (BTW - THIS IS NOT LEGAL ADVICE - just an example consult an attorney in your state if you are really concerned about the exact wording)

Agent XYZ hereby agrees that upon the successful closing and transfer of ownership of the property located at 123 fake street to Buyer, Agent will immediately upon receipt of the commission to which he has been paid by Seller, and as an express condition of Buyer's use of Agent XYZ in purchasing the above mentioned property, rebate XX% of the commission to the Buyer.

If this is all done on the HUD then there is no tax consequence to either one of you.

[Captain Bill]

Originally Posted by marksmu

You dont have to be a lawyer by training to handle that correctly - it just needs to be in writing, clearly enunciating what it is you are agreeing to, and signed/dated by both parties.

A contract merely needs an offer (I will use you if you rebate commission), acceptance (his communication of agreement), be for a legal purpose (check with state laws), Consideration (he gets something for his services) and be in writing, signed by both parties and performance....there is no requirement that it be dated, but ALWAYS date everything.

A statement such as this: (BTW - THIS IS NOT LEGAL ADVICE - just an example consult an attorney in your state if you are really concerned about the exact wording)

Agent XYZ hereby agrees that upon the successful closing and transfer of ownership of the property located at 123 fake street to Buyer, Agent will immediately upon receipt of the commission to which he has been paid by Seller, and as an express condition of Buyer's use of Agent XYZ in purchasing the above mentioned property, rebate XX% of the commission to the Buyer.

If this is all done on the HUD then there is no tax consequence to either one of you.

This should be on the HUD, because if the home is being financed, the lender needs to know if the buyer is getting any funds from anyone else. If it is not disclosed on the HUD, then it "may" be perceived as loan fraud. It's best for the agent to have it on the HUD anyway, so that s/he is not taxed on that money, and doesn't have to receive the money, pay it out, and then issue a 1099.