F.A.Q. ...
FAQ
Q: Are most homes on the market for sale by their owner?
A: Yes
Q: Can a real estate agent give legal advice?
A: No
Q: Can a real estate agent draw their own contract?
A: No. Brokers cannot prepare legal documents. The Texas Real Estate Commission and Texas Association of REALTORS provide fill-in the-blank, promulgated forms (contracts).
RE: Buyer’s Representation Agreements
Q: What is a Buyer Representation Agreement?
A: In general it is an agreement between a broker and buyer stating the terms of their business relationship, and many times guaranteeing the broker financial compensation.
Q: Is it a conflict-of-interest for a broker, acting as a buyer's
representative, to reward their agent by means of a more generous commission split (of the buyers' side of the transaction) for selling an "in-house" listing?
A: It is an accepted practice. Commission splits between brokers and their agents are not public information.
Q: Is it a conflict-of-interest for an office with several in-house listings to require that a buyer sign a “Buyer’s Agreement”?
A: This is an ongoing discussion. We suggest that if a buyer is requested to sign a binding agreement that they read it carefully and if they do not completely understand it, have their attorney review it.
Buyer’s Rebate:
Q: What is a Buyer’s Rebate?
A: A portion of the broker’s sales commission which is given to the buyer at closing in the form of a check issued by the title company.
Q: Is it legal for a broker to rebate part of the commission back to the buyer.
A: Yes, with the following stipulations from the Texas Real Estate License Act; a rebate must be disclosed to all parties and the broker has the consent of the party they are representing. The buyer’s mortgage lender should be made aware also. Generally the rebate may not be used by the buyer to qualify for financing.
Q: Are there tax consequences regarding a Buyer Rebate?
A: The answer is almost certainly, no. A February 9, 2007 Internal Revenue Service ruling states that "a payment or credit at closing from [Broker] represents an adjustment to the purchase price of the home and generally is not includible in a purchaser's gross income." We will not report your commission refunds to the IRS and you will not receive a taxpayer Form 1099 from us. Source: IRS Index Number 61.00-00, 6041.00-00 -click here to see ruling