seller wants $3000 cash to close .. isnt this illegal?
okay we are now 2 weeks from closing but the problems continue.
Seller is expecting to receive $3000 moving money even though they did not qualify for the HAFA program. They were emailed about this months ago by the negotiator (i was copied on it). They are stating they will not close without it.
isnt it illegal for me (the buyer) or the broker to agree to give them cash to close the deal?
what say you???
Replies to This Discussion
-
Permalink Reply by Debra Savittieri on
-
Easy! Deal NOT any longer with the Realtors.
Now is the time to place a phone call to the Listing Broker. Brokers #1 concerns and rule of thumb is....'MAKE the problem to go away'.... They WILL help resolve the issue. Obviously by over 90 responses here- we Realtors from different States and different Laws- do not have enough info on this full issue to give proper guidance.Call the Seller's Broker at once and make a face to face appt with him/her and hopefully the Broker will also call both Realtor's, Buyer's Broker in the meeting as well. I am positive the issue will be resolved quickly and without exposure to Law suits. Putting the Monkey on Listing Brokers back always resolves the issue. Now pick up the phone!
-
Permalink Reply by Kelly W. Maynard on
-
Good advice!
-
Permalink Reply by arod on
-
DEBRA: you are right. i have been avoiding calling his broker b/c i've been trying to get his cooperation through diplomatic means. i fear that if i contact his broker the shady realtor will be forced to take a stand and fight to defend himself and the goal -- of getting to closing -- may be lost in the scuffle.
-
-
Arod,
No fights will erupt in the Brokers office ARod. Once all parties are in the Brokers office- The truth will come out. Most likely if the Listing Realtor DID offer the Seller funds- the Broker will decide if a commissionectomy is necessary-or at the least provide a solution to close or reason to cancel the deal. YOU will only get a proper resolve thru the Listing Broker and a POW WOW with all parties looking at each other. Trust me- It works!
-
-
DEBRA: the shady listing agent who is getting both sides of the deal put his broker's name on the deal as the "buyer's agent." (i thought it was another agent in his office, but it's actually the broker). so I may have more leveraging power since technically she's supposed to be representing me on this deal.
if nothing gets resolved in a few days it looks like i'll have no choice but to organize this type of meeting. thank you for the guidance!
-
-
ok, new question to all of you as i try to find a LEGAL solution to this:
i'm the buyer. can the broker credit me $3k from his commissions on a shortsale and for it to show on the HUD?
we have a bank approval letter agreeing to full 6% commission which comes out to about $23k.
do we have to submit the credit through equator? will the bank allow it? is it legal? and will it cause a delay in closing? or can bank come back quickly with a response?
what say you?
-
Permalink Reply by Cody Lampariello on
-
What a mess!! To answer your question there is no issue with the realtor giving a you a credit for closing except for possibly with your lender. If it were in our office we would just leave the seller side on the settlement statement the same and mark a 3k contribution from the realtor to you on your side of the settlement statement. The bank wouldn't care because it is a buyer side issue which they really don't care about and we could just adjust the check to the realtor when we close escrow.
You could always discuss the issue with the title agent on the file and your lender to see what will be allowed.
-
Permalink Reply by Satar Naghshineh on
-
Arod - In my state, Real estate agents can give rebates. It shows up on the buyer side of the HUD. The foreclosing lender doesn't see it. You do not need to submit it on Equator as Equator only deals with seller side on BofA short sales.
You seem to forget that you are a licensed real estate agent. You work for a broker. The listing agent works for a broker. It is perfectly OK and legal for one broker to pay another broker. So he can give you 3k outside of this transaction (outside of the HUD). What you do with that 3k is your business. *cough* seller *cough*
The real question is whether the listing agent wants to give the 3k. If he tells you he would like to give them the money but can't because it is illegal, then you offer that he gives it to you and you give it to them. Now you got him!
-
-
YES satar, that's exactly what i was hoping! agent is hiding behind the 'i can't give them any money b/c it's illegal"... but a credit to me would be perfectly legal. YOU GAVE ME THE IDEA! thanks!!!
also, i spoke to my attorney and they said i could easily create a bill of sale for the appliances the seller's want to sell me... including the spa!
now lets see if shady realtor goes for it. and lol @ *cough. u have a cold? ;)
-
-
wait, i'm confused satar.. Can the listing agent give me the $3k credit on the HUD? i'd feel more secure that way.
-
-
Yes. Apparently it is legal in your state as well to get a rebate. In other words, he can give you 3k and it will show up on the buyer side HUD:
http://real-estate-commission-rebates.com/naples_florida_communities
No worries, if he objects, just have him give you the 3k outside the HUD as a licensed agent.
Also, it doesn't matter if you do a bill of sale for the appliances or not. It can't be tied into the purchase of the property. So that solution doesn't help you.
By the way, this is exactly the same reason why you don't use your lawyer as an excuse to change the move out date with the sellers. Right now, the listing agent has no negotiation room cause you solved his issue.
-
-
Satar,
What State do you practice Real Estate in where REBATES are not only legal but HUD statements do NOT show or disclose to Buyers fees... and.... on top of that (amazing!) you actually state in bold writing here- Realtors and BROKERS can pay buyers and sellersmoney outside of the HUD.
I really do not want to offend you here however I think I am doing you a favor by addressing you.
Your coughs might be caused by the noose around your neck you are tightening with your comments here which are pretty much possible violations of State laws and federal Laws- headed on your lap soon.
Pull out the State Statutes and refresh your knowledge Satar Naghshineh. I think you are Lucky to even have an active license and feel sorry for your employing Broker!
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons