Many brokers have specific rules about how an agent can handle their own property investments and/or sales.
You should speak with your broker. There may be a way to work it out that meets your needs.
I agree with everyone below â€“ it sounds like you might be a newer agent and have some basic questions about how the purchase agreement is supposed to work â€“ especially when buying a home for yourself.
I agree with the rest that you must discuss this with your broker â€“ they can walk you through the entire contract. However, there are some things you can do to address your first question:
1. If you are a licensed Realtor and the home you are buying is for your personal use, you must disclose this somewhere in the contract. Page 6, Section 25. D. is normally where this happens. If you donâ€™t have enough room there, use a standard addendum and state in Section 25. D. â€œSee attached Addendum #1 for further details. Put all the items on the addendum.
2. If you wish to deduct your commission from the purchase price, you must have your brokerâ€™s permission because it will affect your split arrangement with your broker. Some brokers will let you buy and sell personal properties with no fee. Other brokerages charge a fee for any number of reasons. If you deduct the entire amount of your commission from the sales price and your broker still wants a piece of the transaction, you will have to pay your broker directly in some way.
3. It is wise, as a Realtor, when buying properties for you or your portfolio, to deduct your commission so that (1) you donâ€™t pay income taxes on it, and (2) you donâ€™t pay property taxes on the additional amount.
If your broker allows you to purchase a personal property without any fee, then simply use a Cooperating Broker Compensation Agreement and Escrow Instruction Form (C.A.R. Form CBC) to change the commission structure to you and your brokerage. On page 6 of the Purchase Agreement, Section 25. D., include a sentence such as the following:
â€œIn lieu of commission paid to the selling brokerage, purchase price to be reduced by the amount of the commission. See attached Commission Agreement CBC.â€
Hawk Beach Realty
2 Jungle Hut Rd,
Palm Coast, Fl, 32137
Many agents find homes brokers usually agree as long state standards, lender approval.
How should the agent go about doing this ?
-Is there a form or should it be put in a counter offer?
Do we have to go through the broker - - My broker may object =| - is there a form to ask , or just a simple agreement in offer