Replies

  • I have seen more than one arms-length-transaction form from the lender who is approving the short sale the stipulates that an agent acting as buyer or seller in the transaction will not be paid a commission. The lender requires that buyers, sellers and their agents sign the arms length transaction form and have their signatures notarized.
  • Wendy. I am not aware of any law anywhere that would prohibit an agent from receiving a commission on their own transaction. This is not a legal issue. It's a lender/investor guideline issue. Now having said that, it could very well be a legal issue if you agree in writing that you are not getting a commission and then take one anyway. The lenders are making up their own "laws" as they go along. That's where the problems come in.
  • Is it legal to do that?  My broker told me it's not legal to do this way since I actually get the commission.

    Bryant Tutas said:
    Nathan getting the approval is probably not an issue. Getting paid will be. Investor normally will not pay a commission to a party to the contract. Have another broker do the deal for you for a referral fee.
  •   As soon as the bank gets the signed Arms Length Transaction agreemnt form it's game over anyway. I aways tell agents that want to buy, you won't get a commission. And I tell them about the ALT form, and they agree.
  • Is the buyers agents name on the contract or the brokers name? Could make a difference
  • Cal. It's certainly worth asking. It may be too late on this transaction though. You could just withdraw and try again with anew lower price or another agent doing the deal.
  • Since investors will not pay this to agent as principal, but would pay it to agent if representing someone else, would investor consider lowering sales price by commission amount. Investor still nets same amount.
  • Yes, I just had the same problem. But my question is, how does one change now in midstream. I can have someone else write the offer, but won't we just have to start over now and be back to another 90 day wait period.
  • Nathan getting the approval is probably not an issue. Getting paid will be. Investor normally will not pay a commission to a party to the contract. Have another broker do the deal for you for a referral fee.
This reply was deleted.
********************************** like buttons ************************