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.
Front Range Real Estate, Ltd.
Prudential Real Estate of the Rockies
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
5280 Magazine FIVE STAR Real Estate Professional â€“ 2010, 2011, 2012
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
Your Castle Real Estate
Direct - 303-669-1246