Re: Realtor’s commission…Pros please read - Posted by JPiper
Posted by JPiper on May 17, 1999 at 18:43:19:
In your original post you said “One deal that I did with my sister was to have the seller pay me a “finder’s fee” in closing. I just gave the check to my sister to help with the closing costs.” I took this to mean first that you and your sister were the buyers?..in which case accepting money directly from the seller would have been illegal under most loan programs I’m aware of.
It appears now that you weren’t one of the buyers?.but rather were a “finder”. “Giving” the money to your sister?.unless it was covered by a formal gift letter and the lender was given a copy of the gift letter?.would be illegal as well. Some loan programs will permit gifts, and others won’t?.but if they do permit them they have to formal in nature. There have also been cases where “gift money” was verified?so that gifting money which you got from the seller wouldn’t be permissible either.
Understand that a “finder’s fee” is not the same as a real estate commission. The commission is formally recognized in the law, and is enforceable by licensees. The finder’s fee is not enforceable by the recipient?and may be illegal to receive under the conditions that you received it in the sense that you were performing an activity that requires a real estate license to perform.
By the way, I’m not an attorney, and I don’t have all the details of the transaction?.so this is all just my opinion.