Buyer agent fees

The agent for the buyer on one of my listings is charging his buyer a 2000 fee on the buyer side of HUD. Is there anything I need to worry about. It is a 40k property and his buyer agreed to pay him additional commission which is fine by me I just don't want the deal the get kicked back because of the charge 

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

Email me when people reply –

Replies

  • Thanks for the replies, I talked to lender and they dont care as long as it dont affect net and nothing going to seller.

  • Im just going to leave it on there and keep a copy of the buyer broker agreement showing the buyer agreed to pay the buyers agent $2000 broker service fee.

  • It depends. If it's a Freddie Mac deal they will try and limit the agents to total of 6% even if the fee is being paid by the buyer.

    If the buyer is paying cash for the property then they can always just pay their broker off the HUD since RESPA does not apply to a cash deal. Or they just pay their broker before closing if it's a financed deal.

    I'd just make the agent aware of the possibility of the lender balking at the $2,000 on the HUD. They may just have to sort it out with their buyer.

    • An agent can "list" a buyer just like a seller with a buyer broker agreement.  Happens often when dealing in low end or markets with low average commissions.  Agent and buyer sign an agreement stating that agent is to be paid X amount and if the commission is lower, the buyer makes up the difference.

      Agree with Bryant that the lenders may balk at it but if it is cash, no worries.

      • Thats exactly what it is. Buyer will not pay it though unless on HUD? Lender is not requiring to approve final HUD as long net doesnt change from whats on approval. Its a cash deal.

        • Mike, with a cash deal I dont know if it has to be on the HUD.  Maybe to be safe put it on the HUD as aPOC

This reply was deleted.
********************************** like buttons ************************