Rob LeRoy

Typically, the commission (which is usually 6% divided between Buyer and Seller's agents) is paid at closing by the Seller. Therefore, the commissions are reflected in the purchase price. There is generally no out-of-pocket expense for the Buyer in terms of his/her agent's commission. I am not sure that there is a distinction between "acquisition price" and "purchase price," though the responsibility is with the Seller regardless. It is important to note, however, that this is, in a certain sense, a technicality, given that the commission is factored into the price. Even though the Buyer's agent's commissioin (Selling Office Commission) is subsequently deducted from the Seller's proceeds, it could be argued that it is, in a sense, a premium paid by the Buyer. Either way, it is considered to be part of the purchase price, as opposed to Title and Escrow fees and loan origination fees, which are tacked on at closing.

I hope that helps... - Tue Apr 22 2008, 11:41