Home Buying in Denver>Question Details

Phung Nguyen, Other/Just Looking in

Where does the broker rebating the buyer have to be disclosed?

Asked by Phung Nguyen, Mon Mar 25, 2013

Does it have to be disclosed on the:
- BC60 Exclusive Right to Buy (buyer agency contract)?
- CBS1-10-11 Contract to Buy and Sell Real Estate-Residential?
- HUD-1?

Any help is appreciated. Thank you,

Help the community by answering this question:

Answers

7
Ron Rovtar’s answer
Hi Phung Nguyen:

The HUD-1 is the financial accounting of everything involved in the closing, including any rebate. For everyone's protection, every penny involved in the transaction must be on the HUD-1

BTW: I would respectfully disagree that the commission should never appear in the Contract to Buy and Sell. Here is why: there are occasions where the buyer has guaranteed a minimum commission in Colorado's Exclusive Right to Buy Listing Contract (#7.1). If this is the case and there is any question about who will pay the commission or how much the commission will be, then I would suggest that describing the commission and establishing that the seller will pay is a protection for the buyer that should be included under "Additional Provisions." This can happen in a number of cases, the most common probably being cases where the property has not been listed on the MLS.

Kind regards,
Ron Rovtar
Front Range Real Estate, Ltd.
Prudential Real Estate of the Rockies
303.981.1617
ron@rovtar.com
http://www.rovtar.com
0 votes Thank Flag Link Wed Mar 27, 2013
Agents are NOT party to the Contract to Buy and Sell and commission issues do not belong on that doc.
0 votes Thank Flag Link Tue Mar 26, 2013
Phung,

All of the answers are correct so far. Disclosure is key in the Real Estate Business and the HUD-1 needs to state the information as well as the lender need to know.

Much success on your transaction!

Bill Pearson GRI, SRES |"Your Denver Realtor For Life"
ERA Herman Group Real Estate| 201 Columbine Street| Suite 301| Denver CO 80206
720-329-1470 |Bill@DenverRealtorForLife.com
5280 Magazine FIVE STAR Real Estate Professional – 2010, 2011, 2012
0 votes Thank Flag Link Mon Mar 25, 2013
Yes
Yes
Yes
And, give the lender an early heads up about the rebate.
Robert and James are correct when their answers are combined.
0 votes Thank Flag Link Mon Mar 25, 2013
Phung,

The best way to disclose it is to do an 'Amend/Extend w/Broker' if it was not on your original Buyer Agency Agreement. Then on an 'Amend/extend' to the contract signed by buyer and seller so the title company has a contractural agreement in writing that authorizes them to put it in the HUD-1. Broker rebates to the buyer are in this market. But if for some reason you do it this would be my suggestion. Your Buyer's Agent should be your first source of answers to questions such as this.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
0 votes Thank Flag Link Mon Mar 25, 2013
This must be disclosed on the hud 1 statement
0 votes Thank Flag Link Mon Mar 25, 2013
Hi Phung Nguyen,

It has to be disclosed on the HUD-1 Settlement Statement at the closing. The lender should be aware of this prior to closing so they can approve it also.
0 votes Thank Flag Link Mon Mar 25, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer