tag:blogger.com,1999:blog-4797432599663441966.post6970827546052469218..comments2008-07-03T11:30:31.052-04:00FRANK LL0SA Va Broker- BLOG.FranklyRealty.comhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.comBlogger41125tag:blogger.com,1999:blog-4797432599663441966.post-1933126085422959942008-07-03T11:30:00.000-04:002008-07-03T11:30:00.000-04:00

I will answer this over on questions.FranklyRealty.com

FRANK LL0SA Va Broker- BLOG.FranklyRealty.comhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-83869854080087274712008-07-03T11:28:00.000-04:002008-07-03T11:28:00.000-04:00

WE USED A DISCOUNT AGENTHi,I came across your website in search (googling) of information on how to get out of a sticky situation. Any advice you can provide would be greatly appreciated.Two days ago (7/1) we closed on a REO home. We did not get the HOA resale packet at closing. It turns out it wasn’t even ordered…. (we used a discount agent…. He’s not very helpful,,, won’t even return my

Jacobnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-85128492580257223342008-05-28T15:04:00.000-04:002008-05-28T15:04:00.000-04:00

To Diane: The FBI is a division of the USDOJ -- which encourages commission rebates.

2% Commission Realtor Rebate - Cash Back Buyer's Agent - Atlanta, Georgia GAhttp://activerain.com/blogsview/527187/2-Commission-Realtor-Rebatenoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-3661859982494041062008-05-28T15:00:00.000-04:002008-05-28T15:00:00.000-04:00

One should always disclose any material fact to the lender -- including a rebate of commission. The lender should also recognize that rebates are a viable means by which a buyer’s broker can lower his/her fee to the buyer; it’s a 2-way street.

2% Commission Realtor Rebate - Cash Back Buyer's Agent - Atlanta, Georgia GAhttp://www.georgia-new-homes.net/2_Commission_Realtor_Rebate_-_Atlanta_GA_Georgia/page_2067877.htmlnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-58168188759408069372008-05-28T10:30:00.000-04:002008-05-28T10:30:00.000-04:00

On cash transactions, there is no lender and so no problem.If you are engaged in a real property transaction in which the buyer gets a mortgage from an institutional lender, and the buyer takes a rebate from the real estate agent without disclosing the cash to the lender.....pause for breath.......you run the risk of colluding in mortgage fraud.I don't give a damn how many lawyers think this is

Diane Cipahttp://www.blogger.com/profile/13347332449162866987noreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-35308764084035300702008-05-27T23:42:00.000-04:002008-05-27T23:42:00.000-04:00

Hey Anonymous. Can I call you Steve? I hate anonymous.Steve. What state are you in? The rules change from state to state.You are correct, in part. You *might* no longer have to put the rebate on the HUD1 in Virginia. The initial rule came directly from HUD itself. I asked HUD and they sent me a VERY strongly worded statement about it being required. However since this post, creative real estate

FRANK LL0SA Va Broker- BLOG.FranklyRealty.comhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-25530312440778691462008-05-26T01:06:00.000-04:002008-05-26T01:06:00.000-04:00

Hi Frank. You seem like a nice guy with good intentions. It is too bad that you don't know what you are talking about. I am sure that many CDRE licensees wish you didn't give them such a bad name. They know that many consumers' attitude is that since they are realty agents like you, then, they are guilty by association. One call to the C.A.R. Legal Hotline will clarify that a buyer rebate does

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-43591928979464387092008-05-24T18:50:00.000-04:002008-05-24T18:50:00.000-04:00

Generally speaking, when a seller lists a home, a portion of the commission is allocated for the buyer's agent; this process creates cooperation amongst agents to maximize the exposure of the home.If the buyer has no agent, then generally the 3% overage will be retained by the listing agent (seller’s agent). A savvy buyer can negotiate a rebate from a true buyer’s agent; in turn, this buyer’s

Home Buyer Rebate Informationhttp://www.georgia-new-homes.net/Home_Buyer_Rebate_Information/page_1946417.htmlnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-4581306570688379942007-04-12T17:39:00.000-04:002007-04-12T17:39:00.000-04:00

State of Illinois May compensation be paid to a principal to a transaction, even if the principal does not have a real estate license? The Answer: Yes. Section 10-15(c) of the Act authorizes the offer or payment of compensation (“prizes, merchandise, services, rebates, discounts or other consideration") to an unlicensed person who is a party to a contract or lease. Of course, such compensation is

Realty_Pronoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-87871576529558479162007-03-29T19:11:00.000-04:002007-03-29T19:11:00.000-04:00

Are unscrupulous rebaters violating RESPA by retaining unearned fees? The unscrupulous rebater agrees to work for a lower fee to attract buyers. At or near closing, the lender disallows the rebate on the HUD-1. The unscrupulous rebater tells the buyer "sorry, no rebate for you". The buyer was duped and the unscrupulous rebater keeps the unearned fee -- a possible section 8 violation of RESPA.

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-80467267992661505432007-03-12T10:46:00.000-04:002007-03-12T10:46:00.000-04:00

I just read a great blog that exposes the business model for one rebating firm. www.tinyurl.com/yuyqo6"Avg Monthly agent income $2,220 or $26,640 a year"They said that one of their main problems was turn over. The company keeps such a big percentage and pays the agents so little that they leave. Many large firms are 50/50 for newer agents. This company only gives the agent 28%!Again, I am NOT

FRANK LL0SA Brokerhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-45291781063423638122007-03-04T05:24:00.000-05:002007-03-04T05:24:00.000-05:00

Another method my dear friend, call your company something like "I Give big Rebates To Buyers.com realty" . This way in case the builder or lender will not allow rebate credit on settlement statement, rebate will still be disclosed in your company name. Nobody could stop that because settlement attorney would have to pay to broker's licensee. LOL! Cherio!

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-39475606992218708412007-03-01T13:12:00.000-05:002007-03-01T13:12:00.000-05:00

"IF YOU LOST ON A REBATE BECAUSE OF THIS, FILE AN ANTITRUST COMPLAINT WITH DOJ OR FTC."Great advice! Reparations for consumers may be in order. And what about those licensees who lost their licenses for giving rebates?

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-82100184529321227132007-03-01T08:14:00.000-05:002007-03-01T08:14:00.000-05:00

SINCE THE BUILDER, LENDER, AND SETTLEMENT COMPANY ARE THE SAME COMPANY, THE BUILDER CAN KEEP THE BROKER REBATE OFF THE HUD-1, AND MOST ARE DOING JUST THAT! ONLY OPTION FOR BROKER IS TO SEND REBATE CHECK AFTER SETTLEMENT--AGAIN, REBATES ARE PROTECTED BY ANTITRUST LAWS. ALSO, THERE IS EVIDENCE THAT BUILDERS AND REAL ESTATE BROKERS HAVE COLLUDED TO KEEP BROKERAGE FEES FIXED, THIS HUD-1 ISSUE IS ONE

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-11453959785587061252007-02-26T20:02:00.000-05:002007-02-26T20:02:00.000-05:00

RESPA is a consumer protection act, it was created to lower the costs for the purchaser not as an excuse by real estate brokers to keep fixed commissions.Of course, it is great to be conservative and disclose buyer rebate on the HUD-1 which is recommended but the realities of the real estate business simply prevents this because third parties to the buyer broker agreement are preventing the

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-24343562650489273212007-02-26T17:40:00.000-05:002007-02-26T17:40:00.000-05:00

Frank,There is nothing wrong with being conservative. However, you were speaking with certitude on the matter. I tend to agree with the former poster.

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-61577373296506885722007-02-26T16:41:00.000-05:002007-02-26T16:41:00.000-05:00

I love your passion. I will take the more conservative approach and disclose it on the HUD1. I will also agree to disagree. I have researched this a year ago and was given a very strict written response from HUD that the rebate has to be on the HUD1.Happy house hunting.

FRANK LL0SA Brokerhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-43306379905033574472007-02-26T16:07:00.000-05:002007-02-26T16:07:00.000-05:00

Broker to Buyer rebates do NOT have to be on the HUD-1 settlement statement unless the rebate is used as a credit to purchaser's "source of funds" for closing costs which obviously needs to be approved by lender and shown on HUD-1 settlement statement. If the rebate check is paid after settlement, it is not a source of funds for the purchaser's closing. Does rebate have to be on HUD-1? NAR's

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-91674399736511775192007-02-26T13:50:00.000-05:002007-02-26T13:50:00.000-05:00

Thank you for again for you participation in this blog.You obviously are upset about something unrelated to me or my blog.I call it what the DOJ and HUD require us to call it. Take your issue up with them. Email me if you want their contact info.

FRANK LL0SA Brokerhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-44700685931755075252007-02-26T13:43:00.000-05:002007-02-26T13:43:00.000-05:00

"Why the anonymous?"Because it's an option. Why have the option?Then I ask you, are you committing fraud to the public by calling it a realtor rebate when in fact it isn't? This is misrepresentation. Your scenario is not a rebate from the agent, but an increase in the seller's contribution -- which the buyer could very well negotiate without you as an agent.

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-79670593310544822112007-02-26T13:32:00.000-05:002007-02-26T13:32:00.000-05:00

Call it an apple, call it a spade. Do the other way and you go to jail.I wish that rhymed.Are you a Realtor or a buyer? Why the anonymous? Frank

FRANK LL0SA Brokerhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-21282886390892252902007-02-26T13:24:00.000-05:002007-02-26T13:24:00.000-05:00

Apples-to-Apples please.Firstly, in your scenario, the manufacturer is giving the rebate -- not the middle man who brokered the deal. In a real estate transaction, the manufacturer would be the seller. So once again, the seller is giving the rebate, not the agent.

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-9343751459262945752007-02-26T13:13:00.000-05:002007-02-26T13:13:00.000-05:00

No, it is a Realtor Rebate. Yes the timeline is not perfectly correct as you pointed out. How can the buyer get a rebate BEFORE the broker even got a pay out? You are just playing with the details.Think of it like a purchase at Office Max. The $20 product says "Instant Rebate of $5". When you go to the cash register, the process is:1) You get rung up for $202) You get your instant rebate of $5 (

FRANK LL0SA Brokerhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-77247093392194504922007-02-26T12:16:00.000-05:002007-02-26T12:16:00.000-05:00

So, then it's not a realtor rebate. It's the seller increasing his/her contribution to the buyer?

Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4797432599663441966.post-29492028818327069452007-02-26T11:26:00.000-05:002007-02-26T11:26:00.000-05:00

Sorry Anonymous,What you are suggesting is considered FRAUD according to HUD. We have asked them repeatedly about this is many different forms.The rebate MUST be disclosed on the HUD1 (not just the commission disclosed).

FRANK LL0SA Brokerhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.com