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My husband and I are apartment locators in Austin, TX. We are not Realtors but licensed real agents. We are currently buying a home using VA loans. Today the lender told us that There might be VA guidelines that forbid us from getting paid commissions since we are representing ourselves! Is this true? Has anyone heard of this before?
From my understanding (based on going thought a VA loan) VA does not allow the buyer to walk away with money. I could still have some closing covered but I could not walk away with a profit from closing essentially.
I know veterans can't be made to pay any commissions as buyers. Not sure about your case. We have many VA buyers get money back at closing when the seller is paying all closing costs.
We were paid a commission when we bought our current house from the builder with a VA loan. Probably dumb from a taxable income point of view. Better to get a reduction in price.
From my understanding (based on going thought a VA loan) VA does not allow the buyer to walk away with money. I could still have some closing covered but I could not walk away with a profit from closing essentially.
I was just a buyer, I am not a realtor or agent.
Not true. We have a VA loan and walked away with approx $700 at closing.
Not true. We have a VA loan and walked away with approx $700 at closing.
Well I am only speaking to my experience when I went V.A. The mortgage people said they did not think I could. In the end did not matter as any money that could have went to us was just paid into points.
Not true. We have a VA loan and walked away with approx $700 at closing.
You are allowed to walk away with what you put into the deal. If you had earnest money or inspection money or option fee money in the deal already, you are allowed to get that money back if your closing costs are all covered. That is still considered not walking away with money because it was already yours. You can't walk away with $10k if you put only $1k into the deal.
Yes, you can receive a commission as that is completely different. That's not the "buyer" receiving money. That's the broker receiving money from the listing broker, and you are entitled to whatever split you have with your broker.
There are some banks that are refusing to pay a buyers agent a commission if they are the buyer.
However, they cannot interfere with the contract between the listing agent and the buyers agent.
I don't know about your state, but in Arizona ARMLS the commission stated on the MLS listing is a contract between listing and buyer agent. The listing agent is obligated to pay the buyers agent the stated commission, whether or not the bank allows it, or whether the bank pays it to the listing agent.
If the buyers agent is to get 2.5%, and the seller's agent 3%, and the bank only allots a total of 3%, then the listing agent still must pay the buyers agent the 2.5%.
The listing agent should inform the bank that s/he is contractually obligated to pay the stated commission and the bank cannot negate that contract.
If the listing agent does not want to inform the bank, then have the listing agent sign a referral agreement with you so that her broker pays you the referral fee in the amount of the commission, after COE.
Talk to your broker about it, and let him/her know that you want your commission.
If there are sellers concessions towards the buyers closing costs; and it is sufficient to cover all the buyers closing costs, pre-paids and non-allowables.....the buyer can receive back money at closing BUT only up to the amount of the earnest money deposit (Good Faith Deposit).
Hence, the veteran is only paying "out of pocket" for inspections.
I know when we used our VA loan, I was paid commission through my company. Keep in mind the HUD states the company that receives the commission, not the agent.
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