Oct 25, 2010

Tip 40-2010: Real Estate Commission & Deposits

It is common practice for the realtors to send to the settlement attorney a real estate commission disbursement statement.  What would be helpful is for both the selling and listing realtor to each send the disbursement statement to both settlement agents and to each other.  By comparing information, any misunderstandings regarding the real estate commission can be resolved before the closing and disbursement of the commission.
It would also be helpful on the disbursement statement to list the amount of the deposit and which agency has the deposit (normally the selling agent).  The disbursement statement should provide the correct address of where to send the commission checks.  Finally, if there are any special arrangements (payment of extended warranty, credit of commission, etc), these should also be spelled out explicitly in the disbursement statement. Copies of all such agreements would be helpful to avoid misunderstandings.
By communicating this information to all concerned, the disbursement of the real estate commission should be trouble free.  Any special instructions, regarding the preference to pick up the commission check directly instead of mailing it should also be relayed in writing to the settlement agent.
Please contact me (Charlottesville Attorney) at 434-951-0858 if you have questions or need legal assistance.

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

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