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Old 06-17-2011, 05:14 PM
 
26,798 posts, read 41,520,354 times
Reputation: 14979

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As far as i know it is not allowed to be given back after closing..It has to be disclosed on the HUD.

No realtor who has self respect will do something like this and if the OP knows what he is doing, then he would act on his own and be shavvy enough to get a good deal without a buyers agent...

You are just trying to take bread away from someone else.

I have been in your shoes as a unlicensed buyer and did the deals myself to negotiate a better deal and was very successful at it. I would never do what you are doing and never as an agent would I agree to a deal like the one you want. We had agents come to us telling us about buyers who suggested all kind of deals which are in a grey area and they all said 'NO" the rather step aside then risk doing something wrong and when it doesn't pass the smell test, you better stay away before you get involved in soemthing that is only starting to be fine line deal.

Perhaps an agent is willing to take 4% to help out negotiate a deal when the buyer doesn't bring an agent, that is more often done and sounds way more fair than what the OP is suggesting.

Last week a fugitive Realtor from Sarasota was arrested and more realtors have lost their license. An entire Re/Max office closed due to some multi million dollar sellers were not acting in a honest way. (Mortgage and homestead fraud).....now the OP is asking a Realtor to do something that is very close to a fine line and what if later on something is with the contracts...who is liable...the buyer who didn't need the Realtor, just his license and the money is kicked back to the buyer who later might sue the Realtor for negligence...

Wow it sounds too good to be true...as long as nothing goes wrong...

That is what many people thought who are now in a mess...maybe a different mess, but this how a mess get started. JMO
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Old 06-17-2011, 11:05 PM
 
6 posts, read 14,828 times
Reputation: 10
Quote:
[a commission rebate] is not allowed to be given back after closing


Quote:
receiving rebates on the commission POC (paid outside of closing) is allowable


For clarification, could someone who has received a commission rebate in Hillsborough county advise on which one of the quotes above is true?

Could someone cite the FL statute chapter that applies to the above statements?

I would prefer that the rebate be applied to the closing costs. I thought that this was not allowed and the rebate has to be POC

Thanks
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Old 06-18-2011, 04:50 PM
 
Location: Not the end of the Earth, but I can see it from here
4,225 posts, read 4,382,630 times
Reputation: 4241
You might want to consider foregoing a buyer's agent/broker and do all of your own due diligence with the assistance of a good real estate attorney.

This is the approach we have taken on a number of home purchases (and sales) over the years in several states, including Florida, and in the process have spent far less than we would have utilizing a broker or agent.

We're in the midst of a short sale purchase right now where the seller's agent tried to get us to sign an exclusive seller's brokerage agreement with them.

I'm not going to get into the legal/ethical issues, suffice to say there is absolutely no reason for us to line their pockets with an additional 3% (that we would be paying!) when all that needed to be done was write an offer to purchase and hand everything over to our attorney.

When all is said and done we'll have spent far less, be assured that everything is on the up and up legally and the agent will still get their 3% (paid by the seller's lender).

As an aside, having a competent real estate attorney can make a big difference in moving things along - when there's a hiccup of any sort, if there is an attorney involved, everyone (lenders/agents/sellers) does what's expected.

At least that's been our experience....

I am not discounting the relevance of real estate agents, either. We have used them on occasion when circumstances dictated, and for the most part have been satisfied.

However, when time and resources permit, we can do much of the due diligence work ourselves and our attorney can provide guidance when necessary.

RM
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Old 06-19-2011, 11:18 AM
 
6 posts, read 14,828 times
Reputation: 10
Quote:
When all is said and done we'll have spent far less, be assured that everything is on the up and up legally and the agent will still get their 3% (paid by the seller's lender).
I don't quite understand the sentence above. Which agent received the 3%?

Did the seller agree to pay the listing agent a 6% commission or a 3% commission?

Was your real estate lawyer also a real estate broker? If they were, did your lawyer just take their legal fees out of the 3% buyers agent commission and then rebate the rest to you?

Did you or your lawyer convince the the listing agent to reduce the commission from 6% to 3%?

Looking forward to your reply!
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Old 06-19-2011, 11:47 AM
 
Location: Not the end of the Earth, but I can see it from here
4,225 posts, read 4,382,630 times
Reputation: 4241
Quote:
Originally Posted by clutch2k3 View Post
I don't quite understand the sentence above. Which agent received the 3%?

Did the seller agree to pay the listing agent a 6% commission or a 3% commission?

Was your real estate lawyer also a real estate broker? If they were, did your lawyer just take their legal fees out of the 3% buyers agent commission and then rebate the rest to you?

Did you or your lawyer convince the the listing agent to reduce the commission from 6% to 3%?

Looking forward to your reply!
The seller's agent is getting 3% from the seller's lender as I understand things (this is a short sale, and the seller has no skin in the game, so to speak.)

The seller's agent attempted to get us to sign an exclusive brokerage agreement which would have given them 3% out of our pockets, not to mention would have created a dual agency situation, which we understand is not legal in Florida. This is a secondary issue not related to the commission. That being said, I failed to understand their motivation for this unless they did not expect to receive a full commission from the seller or their lender.

Our real estate attorney will be paid out of our pocket for his time and nothing more. He will not receive a commission, only his fee, which will be far less than 3% of the purchase price.
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Old 06-19-2011, 11:53 AM
 
Location: Not the end of the Earth, but I can see it from here
4,225 posts, read 4,382,630 times
Reputation: 4241
To clarify the second paragraph, if the seller's agent was getting a full commission from the seller/lender, does that mean they would get 9% if they had us sign a buyer's brokerage agreement?

Not trying to sound stupid, but I see no other motivation for doing so unless they did not expect to receive the full commission if there is no other broker/agent involved in the transaction....

RM
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Old 06-19-2011, 01:08 PM
 
6 posts, read 14,828 times
Reputation: 10
Quote:
The seller's agent is getting 3% from the seller's lender . . .
That clears things up!!

The listing agent agreed with the bank to list the house for only 3%.

If I end up buying a short sale I'll probably end up doing exactly what you did.

Unfortunately, in a non-short sale, it doesn't play out like that.

The most important thing is coming up with a plan before you ever view a house or even call a listing agent to learn info about a home for sale.

Here are some great resources that explain it better than I could:
CapturetheCommission.com
FSBOPrimer.com: How to Save on Real Estate Commissions

RebateReps FAQ

Reprinted by Permission of Dow Jones WebReprint Service®, 1-800-843-0008
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Old 06-19-2011, 01:49 PM
 
26,798 posts, read 41,520,354 times
Reputation: 14979
We have helped sellers in a very successful way to sell their short sale and be the person to try to work the short sale as smooth as possible.

Many calls in the evenings with the lender, later the negotiator and writing statements why the property was worth what we were telling the negotiator, with prrof added to support our findings.

The closing was within 6 weeks and the seller was very happy to get additional money from the lender, no judgement and the lender was happy to get a reasonable cash offer.

I have spoken recently with a realtor who clearly stated all he did was collecting offers and give the offers to the title company who than will be the point of contact with the lender....I agree that realtor should not even get 1% since he was not even willing to show the home, since he clearly stated that he only will put a lockbox on and put it in the mls...

For all realtors who really work all ways to get a deal done, 3% is justified. Another deal was very well done with another opposite realtor who was very creative to get a deal done which was almost dead. Very well performance by that agent.
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Old 06-20-2011, 06:06 AM
 
36 posts, read 59,480 times
Reputation: 62
Quote:
Originally Posted by clutch2k3 View Post



For clarification, could someone who has received a commission rebate in Hillsborough county advise on which one of the quotes above is true?

Could someone cite the FL statute chapter that applies to the above statements?

I would prefer that the rebate be applied to the closing costs. I thought that this was not allowed and the rebate has to be POC

Thanks

61J2-10.028 Kickbacks or Rebates.
(1) Any real estate licensee who receives, or makes any arrangement or agreement to receive, directly or indirectly, any kickback or rebate, for the placement of, or favor in, any business transaction which forms a part of, or is incident to, any transaction(s) negotiated or handled by said licensee, is a violation of Section 475.25(1)(b) or (d), Florida Statutes, or both of said subsections of the Florida Statutes, unless prior to the time of the placement of, or favor in, said business transaction, the licensee shall have fully advised the principal if any and all affected parties in the transaction(s), which the licensee is handling, of all facts pertaining to the arrangement of kickbacks or rebates.
(2) The sharing of brokerage compensation by a licensee with a party to the real estate transaction with full disclosure to all interested parties is not considered a violation of Chapter 475, Part I, Florida Statutes.
Specific Authority 475.05 FS. Law Implemented 475.25(1)(b), (d) FS. History–New 1-1-80, Formerly 21V-10.28, Amended 6-28-93, Formerly 21V-10.028, Amended 12-30-97.
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Old 06-20-2011, 07:17 AM
BBI
 
490 posts, read 851,008 times
Reputation: 369
Quote:
Originally Posted by bentlebee View Post
No realtor who has self respect will do something like this and if the OP knows what he is doing, then he would act on his own and be shavvy enough to get a good deal without a buyers agent... You are just trying to take bread away from someone else.
This is exactly the sort of industry-protectionist BS we ran into. You don't have to find someone without "self respect" to negotiate prices down; you just need someone who's smart, hungry and willing to deal with you. (These are my favorite people to work with in any capacity.) And negotiating a fair price is never, ever, ever stealing. The internet is changing the industry by allowing buyers and sellers to do a heck of a lot more on their own; realtors need flexible pricing models to account for this, and I'd imagine we're a generation or two away from 6% being completely off the table.

Also, whether you're savvy enough to go through the real estate contracting process yourself is completely irrelevant to this discussion, which is how a buyer can avoid paying 3% to his agent when a seller has [stupidly] agreed to 6% and the sellers' agent refuses to play ball.
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