Buying from Relocation Company. Ways to get the Buyer's Comission Back?

[pditty8811]

What is the name of your state (only U.S. law)? WA

We are not using a Buyer's Agent. The Seller has an agreement with the RELO company. We'd like to somehow get the BAC back from the relo company, instead of them keeping the BAC. Seller will sell house to RELO just prior to signing contract. There is a listing agent.

Essentially what is happening is that the seller has no incentive to sell it at a lower price, becuase there is no buyer's agent, because they won't get the BAC back anyhow. Apparently, they sell the house as what the offer price is to the RELO company, and then the RELO sells it to the buyer. I guess, if there is no BAC, the RELO keeps the commission. This seems to be what the listing agent has described to me.

I know I can ask for loan cost provisions, but is there any other way to get a rebate here? The house should be cheaper because we are not paying out buyer's agent commission. We can remedy this somehow. Can I make an optional clause which states the listing agent is to give me a rebate? OR, listing agent give me a rebate AND, lower the referrel fee between listing agent and RELO? I suspect there is a referrel fee between listing agent and RELO of somewhere around 35%. OR, can I ask in an optional clause that the RELO pay the BAC to the buyer? Can non-licensed buyers receive the BAC?

 

[tranquility]

There really isn't a buyers agent commission. There is a commission and there are rules on how it is divided. The seller is already contractually committed to pay whatever commission he agreed to. If you have an agent or not means nothing.

As to if you can negotiate with the person who has contractual rights to a commission to give you some, I am uncertain. Every thing must be disclosed on the escrow sheet and that sounds a lot like a kickback that inflates the amount loaned while putting money in your pocket. So, I suspect you will fail in your goal for two reasons. One, it might be illegal. Two, unless the broker really, really, really, needs the sale, why would he give you half?

I have heard of commission rebates, but they are when your agent who is going to get a commission through escrow rebates a portion back to you.

 

[pditty8811]

There really isn't a buyers agent commission. There is a commission and there are rules on how it is divided. The seller is already contractually committed to pay whatever commission he agreed to. If you have an agent or not means nothing.

As to if you can negotiate with the person who has contractual rights to a commission to give you some, I am uncertain. Every thing must be disclosed on the escrow sheet and that sounds a lot like a kickback that inflates the amount loaned while putting money in your pocket. So, I suspect you will fail in your goal for two reasons. One, it might be illegal. Two, unless the broker really, really, really, needs the sale, why would he give you half?

I have heard of commission rebates, but they are when your agent who is going to get a commission through escrow rebates a portion back to you.

Thanks for the reply.

The listing agent may be inclined to give me part of his comission (rebate), if I renegotiated the referral fee to say 5% between him and the RELO company. He is giving less to the RELO, but also giving some to me. If I put an optional clause that states this, and all parties sign (listing agent, relo and myself), Make the agreement an Entire Agreement Clause, superseding any previous agreements between agent and RELO. Does this fly?

 

[pditty8811]

Rebates aren't uncommon:
http://www.justice.gov/atr/rebates-make-buying-home-less-expensive

However, rebate between a listing agent and a buyer is uncommon, I'd presume.

 

[tranquility]

Thanks for the reply.

The listing agent may be inclined to give me part of his comission (rebate), if I renegotiated the referral fee to say 5% between him and the RELO company. He is giving less to the RELO, but also giving some to me. If I put an optional clause that states this, and all parties sign (listing agent, relo and myself), Make the agreement an Entire Agreement Clause, superseding any previous agreements between agent and RELO. Does this fly?

It still sounds like a kickback to me.

From Wikipedia on mortgage fraud:

Cash-back schemes: Occur where the true price of a property is illegally inflated to provide cash-back to transaction participants, most often the borrowers, who receive a "rebate" which is not disclosed to the lender. As a result the lender lends too much, and the buyer pockets the overage or splits it with other participants, including the seller or the real estate agent. This scheme requires appraisal fraud to deceive the lender. "Get Rich Quick" real-estate gurus' courses frequently rely heavily on this mechanism for profitability.

Now, to know if it were, ALL the exact facts would need to be known before one could really search case law (which I am not inclined to do) to see if it would be a violation. Perhaps others know more than I can opine on how to structure things.

 

[pditty8811]

It still sounds like a kickback to me.

From Wikipedia on mortgage fraud:


Now, to know if it were, ALL the exact facts would need to be known before one could really search case law (which I am not inclined to do) to see if it would be a violation. Perhaps others know more than I can opine on how to structure things.

Right, this would all be disclosed in the contract as addenda. Nothing would be hidden. The lender would be aware. I am not inflating the price to get the rebate, the seller will not be getting the BAC back, so they want the house for a higher price. I am not inflating it. In order to remedy this, I am asking for a rebate from the listing agent, in exchange for a renegotiated referral fee.

Of course the other thing is to ensure it is considered a rebate as concerns to the IRS. So I don't pay taxes on it.

 

[tranquility]

Right, this would all be disclosed in the contract as addenda. Nothing would be hidden. The lender would be aware. I am not inflating the price to get the rebate, the seller will not be getting the BAC back, so they want the house for a higher price. I am not inflating it. In order to remedy this, I am asking for a rebate from the listing agent, in exchange for a renegotiated referral fee.

Of course the other thing is to ensure it is considered a rebate as concerns to the IRS. So I don't pay taxes on it.

If everyone knows everything, the only issue is what you negotiate.

Taxes? Show me all the agreements.

 

[pditty8811]

If everyone knows everything, the only issue is what you negotiate.

Taxes? Show me all the agreements.

I suppose I would have to word the agreements in such a way that "rebates" is used, and not kickback or any other such word.

 

[tranquility]

I suppose I would have to word the agreements in such a way that "rebates" is used, and not kickback or any other such word.

Magic words are not the issue, the form and substance are.