I am a first time home buyer. My buyer agent has told me that he would pass me 1% of his commission.

Asked by Nish, Union City, CA Mon Jun 30, 2008

Do I need to get this documented somehow? How can I ensure that he will passing over his commission when we have closed a deal ?

Help the community by answering this question:

+ web reference
Web reference:


Jed Lane, Agent, Petaluma, CA
Tue Jul 1, 2008
Have your agent do an Addendum . . .
This isn't part of the contract to purchase so it would not go on an addendum. It is part of the escrow instructions and should be documented on the HUD1 to avoid any lender fraud smell. It would be more akin to paying for an inspection or rehab work out of escrow. Those don't go in the contract nor are they add to the contract with an addendum.

To all the agents that question why Nish's agent would do such a thing, isn't it obvious that hte agent feels he needs to buy the business. He knows that his value as an agent is not good enough to earn the business. Also from Nish's name and the area he is buying in I'm assuming it's part of his culture to work this way.

I like the idea of what 1% are we talking about. 15 of the total or 1% of the three. A 3% CSO on a million dollar purchase it would be $10,000 or $300.00. Now that's negotation.
1 vote
Pacita Dimac…, Agent, Oakland, CA
Mon Jun 30, 2008
Hmmm....Exactly what 1% is he talking about?

For example, if his agency's share of the commission is 3% of the sales price, say $500K, that means his agency gets $15,000.

Then if his split is 80% of that commission, his share comes to $12K.

And if he promised you 1% of his commission, that comes to $120.

Is that your agreement? Or are you saying if he and his agency gets 3%, you get 1% and they get 2%?

Guess you better clarify that...and in your buyer representation agreement you should spell it out under "Other Terms and Conditions" so that there is no misunderstanding and no wrong expectations.

Good luck!
0 votes
Linda Streur, Agent, Holland, MI
Mon Jun 30, 2008
He can "pass" you any amount of his commission, however, I would question his motivation to do so and how he intends for you to receive it. Regardless, do get it in writing.
0 votes
Michelle Car…, Agent, Coppertino, AL
Mon Jun 30, 2008
Do get it in writing. You can also word it so that agent can either 1) credit you the 1% in escrow or 2) when making offers on your behalf, reduce the commission by 1% on the purchase contract. So if seller is offering 3% to Buyer, you could have the agent write up your offer stating seller only pays 2%. Not all agents or sellers will do it this way, but it is another option.
0 votes
Tina Evans, Agent, Cookeville, TN
Mon Jun 30, 2008
Jed is correct - always get it in writing.
However, I question the action of the agent... many states have rules and/or laws that prevent agents from paying a client any monies directly. Your first action should be to confirm the legality of this action through the local/state real estate commission a well as contact your attorney. It's a legal matter and that's where your answer will (and should) come from. Having said that, I will say that in some states it is appropriate and allowable for the agent to "give back" to the client a percentage in the form of a commission deduction but that must be a) agreed upon in writing by the lenders and b) reflected on the HUD-1 Statement. Again, before you agree to anything, check with a qualified competant real estate attorney.
Best of luck.
Tina Evans. Principal Broker
Web Reference:  http://tinaevans.net
0 votes
Yana Navarre, , San Clemente, CA
Mon Jun 30, 2008
EVERYTHING has to be in writing in this business. I do have to wonder why he is giving up his commission though.
0 votes
Cherie Chass…, , 95945
Mon Jun 30, 2008
Hi Nishant,
Have your agent do an Addendum with this information in it and make sure that the Title Company gets a copy of this, this will insure that you get the 1% commission without any complications or miscommunications that may happen. If your agent is a Realtor, they have a strict Code of Ethics that they must abide by to make sure that you (and they) are protected! I hope this information is useful to you. Good luck!
0 votes
Jed Lane, Agent, Petaluma, CA
Mon Jun 30, 2008
Have it in writing. Nothing in real estate is verbal. Everything has to be in writting.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more