Hi, I am putting together a short sale and I was granted to do it. Now, when I prepare the preliminary HUD, I put as broker commissions just3 % of my offer to the Mortgagee. Now, my realtor is asking me to pay her a commssion on the first closing meaning Homeowner to Investor. Now, I have an end buyer found by her and she wants to get paid also from Investor to End Buyer… Could you please tell me the right way to handle this situation.
First, the deal with the homeowner it was me who find it. I asked this realtor to listed for me… She shoudn’t get paid for on the first leg. Right?
What kind of agreement do you have with the real estate agent or broker?
If its a listing agreement, for finding your end buyer, then no, they should not be paid for the transaction between you and the seller/barrower on the loan.
Since the real estate agent/broker has no agreement with the seller in this deal, the seller owed no commission to them for that transaction.
Just make sure you did not sign an agreement whereby the agent/broker is acting as your ‘buyers agent’…which it does not sound like is the case.
Bottom line, all agreements will need to be in the hands of the closing title company, and they will follow them…which will include any listing agreements covering commission payments to the broker or agent.
Jim FL is right. If you found the home on your own and this realtor had nothing to do with that transaction then they should not be paid out of the first closing. I do double closings all of the time and I never pay a commission on the first closing if I found the deal and there were no other realtors involved. I only pay on the second if I had a realtor list it.