Mar 10, 2010

Tip 11-2010: Short Sales & Real Estate Commissions

Most short sale negotiators have recently been agreeing to the full 6% real estate commission. However, if the Purchaser is also the selling realtor, do not expect the short sale lender to always agree to allow any commission to be paid to the selling realtor. In other words, the short sale lender will not pay the Purchaser a real estate commission to buy the house.

We recently encountered a short sale where we had obtained an initial approval letter. However before the final approval, the short sale negotiator noticed that the contract contained required language indicating “that the Purchaser was a licensed real estate agent”. But probably more important the negotiator noticed that the Purchaser as selling agent had also acknowledged that the deposit had been received by himself as the realtor. In other words, the same individual signed on Page 8 as both Purchaser and Selling Agent. When the negotiator put “two and two together” the real estate commission was reduced to 3% with only the listing agent allowed to receive any commission.

Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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