Glad you jumped in on this question. Just to clairfy, I do know a buyer can pay (as long as it is properly docurmented) the commission. The specific example in the original quesiton really dealt with the legality, or ethics involved in having a buyer pay the commission as a way of CIRCUMVENTING the NJ Mansion tax , in which the buyer pays 1% of the purchase price for any sale of $1,000,000 and up. By showing a sale price of , say $999,999, and having the buyer pay the $60,000 commission, they could possibly "save" $10,000 for that tax, since the sale's contract would show a figure less than 1 million. In NJ (at least in my area, the northern part of the state) attorneys handle all closings from the moment a contract is signed, and prepare the HUD statements, so it would be on them to handle this situation. As agents, we basically turn up at the point of closing with a smile on our face, and our commission bill in hand, as the logistics of the actual closing are in the attorney's hands!! I would not , however, want to be party to any action that is an attempt to circumvent the law, so it was an interesting question that Michael posed. Yes, it's legal for a buyer to pay a commission, but what are the ramifications in this circumstance, is the bigger question. I couldn't get in touch with an attorney before this holiday weekend, but now I am on a quest to find out! I'll report in next week!