What are the issues to consider when thinking about getting cash back from realtor commission after 1031X?
Considerations from perspective of seller and realtor.
The idea here is that realtor, because of personal relationship with seller, shares part of commission.
I see this as after the exchange and so a personal matter. But would be concerned with tax or other ramifications.
Any thoughts or experience?
the easiest way to do this is for the Realtor to discount their commission so that HUD-1 reflects less payment to realtor, if the agents broker will allow. am i missing something?
Can’t happen. A RE agent cannot legally split commission with a non-licensed person.
Justmyopinion is absolutely correct. You can split a commission with a nonlicensed person. Reducing ones commission is one way having the Realtor pay a portion of the Seller’e closing costs.
Read the question, please, which was can the agent the money received from their commission AFTER the sale of the property?
The correct answer(s) to this is NO, the agent cannot legally give any money from their commission to a nonlicensed person, AND it would be illegal for the agent to do it AFTER the sale. Any transactions after the sale could be construed as fraud as well.
Of course you are correct. A Realtor cannot split commission or pay commissions to a nonlicensed person. I referenced the incorrect poster in my original reply.
Geez, no wonder I raised the ire… I meant to say that of course you CANNOT split your commission… thoughts going faster than fingers once again.
No problem here, kjenn. Happens to me all the time, too.
Just wanted this point to be clear to anybody reading it, though. Definitely don’t want a new investor trying this at home