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  #1  
Old 06-22-2011, 08:56 PM
redfish's Avatar
redfish redfish is offline
 
Join Date: Sep 2007
State: Michigan
Professional Status: Certified Residential Appraiser
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Default Buyer is agent and still collecting gher 3%

I need opinions on this.

Mr X is purchasing a house for 200K with 3.75% in seller paid concessions. Sally high heels wife of Mr. X, is representing her client, her husband as the selling agent and collecting her commission of 3%, according to the contract. The husband is the only person listed as a buyer and the contract clearly discloses that the husband's wife is the selling agent and that she is collecting 3% commission.

This is where I need opinions:

It's obvious why her name is not included in the contract as a buyer.

Would any of you consider this a non-marketed oriented/non-arms length transaction?

Does that commission represent anything besides a commission? Kickback cash back etc.?
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  #2  
Old 06-22-2011, 09:10 PM
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Lakefront boater Lakefront boater is offline
 
Join Date: Jul 2006
State: Michigan
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Well if your wife was an agent and your going to buy a home do you think you wouldn't have your wife write the offer and collect a commission?

I don't think there is anything funny about the transaction from the info you presented.
  #3  
Old 06-22-2011, 09:37 PM
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USPAP Compliant USPAP Compliant is offline
 
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State: North Carolina
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If disclosed to all parties and not a violation of state law.....not an issue. I have collected a commission on several dozen sales where I was the buyer and "selling agent" at the same time. Without my commission I would not have bought many of those properties. Disclosure covers most situations.
  #4  
Old 06-22-2011, 10:05 PM
David Mescon David Mescon is offline
 
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If the commission didn't go to the buyer's wife it would probably go to another realtor - either way, the net to the seller is the same, so it's no big deal.

I just think your jealous because Sally looks better in stilettos than you do.
  #5  
Old 06-22-2011, 10:18 PM
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AnonApprsr AnonApprsr is offline
 
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Who cares?
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  #6  
Old 06-22-2011, 10:45 PM
smackodu smackodu is offline
 
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There is no way you can twist it into a sales concession...but it is a good question. If the realtor discloses in writing they are crediting part of their commission back to buyer it must be noted in the appraisal report.
  #7  
Old 06-23-2011, 12:05 AM
panappr panappr is offline
 
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Quote:
Originally Posted by AnonApprsr View Post
Who cares?
Exactly, I'm currently buying units with an agent and she's most definitely collecting the fee... unfortunately it's not 3%.
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  #8  
Old 06-23-2011, 05:11 AM
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Greg Parker Greg Parker is offline
 
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We've had my father in law acting as the broker on everything we buy. Would rather keep the commission in the family. If the wife still had an active sales license, I would most likely go the same route.
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  #9  
Old 06-23-2011, 06:12 AM
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Quote:
Originally Posted by smackodu View Post
There is no way you can twist it into a sales concession...but it is a good question. If the realtor discloses in writing they are crediting part of their commission back to buyer it must be noted in the appraisal report.

No twisting required. I am a licensed real estate broker. When I see a property I might want to buy....I call the listing agent. If I want the property I will make an offer becoming both the buyer and the buyer's agent

As the buyer's agent receive what ever sales commission was offered in the MLS, on the listing agreement or as agreed between myself and the selling agent.

The commission breakdown of how much to whom is shown on the HUD-1 and this is done on a daily basis in many, many places.

This is never an issue until someone who KNEW what the commission was going to be....decidesrhet don't like the way it is divided.
  #10  
Old 06-23-2011, 07:01 AM
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J Grant J Grant is offline
 
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This is legal unless it is certain REO properties which state in the listing that a realtor buying for own use is not entitled to a commission.

In any case from appraiser's point of view it does not affect sales price and is not a concession, if 6% commission is typical, and 6% paid, it is not appraiser's concern which agent got how much even if one of them happens to be the buyer.
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