Home Buying in Miami>Question Details

Kiera Nichols, Home Buyer in Los Angeles, CA

Commission and Profit Splits Question

Asked by Kiera Nichols, Los Angeles, CA Sun Jul 6, 2014

Can a listing agent who is getting their normal commission also get paid a portion of the profits as a jv partner of the investor who is flipping the property?

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Answers

7
disclose, disclose, disclose.
0 votes Thank Flag Link Thu Jul 17, 2014
In my state, they can as long as they disclose the relationship up front.



Alysse Musgrave
214-734-3863
Alysse@HelpUBuyAmerica.com
http://www.HelpUBuyAmerica.com
0 votes Thank Flag Link Fri Jul 11, 2014
Of course and why not? How is it an issue if the commission is being paid by the Seller?
0 votes Thank Flag Link Thu Jul 10, 2014
As a buyer the commission structure for the listing agent or buyers agent is irrelevant as the Seller pays the commission.

If the listing agent or buyers agent has any interest of ownership in the property is must be disclosed. As long as they disclose owner/agent then no wrong is done.

This is no different then an agent selling his or her own house and collecting the commission and getting paid all the profits.... or a divorced agent splitting the profit with the ex.
0 votes Thank Flag Link Tue Jul 8, 2014
Disclosure is necessary that the Realtor has an interest in the property. Once that disclosure is given then if it is a transparent transaction there shouldn't be a problem. Seek an attorney's advise, I can recommend one if you'd like, let me know.
0 votes Thank Flag Link Mon Jul 7, 2014
Kiera,

If you're buying that sort of property, their profit structure really shouldn't matter to you. Clearly the listing agent is going to get paid - either commission or profit.

The bigger legal issues to check are to make sure all outstanding liens are addressed, and that you have a thorough inspection so you KNOW what permit issues there are. This is Miami, and I would guess that at least HALF the single family homes have code "issues." They range from the minor (like window grates) to the unbelievable (I saw one place where they added about 3000 square feet to a 1000 square foot structure, the whole place needed to be torn down).

Caveat Emptor - Let the Buyer beware

Ann Ryan
Keyes Real Estate
786-332-7042
0 votes Thank Flag Link Mon Jul 7, 2014
Kiera,
Good question to clear up first with your managing broker, then possibly with an attorney. As a principle to the investment, and a licensed agent, disclosure of your dual relationship is highly encouraged, if not required. Go above board and clear everything before you get in too deep. Your license and reputation could be at risk.
0 votes Thank Flag Link Sun Jul 6, 2014
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