Dividing the broker co-op, illegal??

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legallysound

New member
Hi everyone,

I have an issue to bring up. After doing major research, I decided on the homes/communities that I wanted to see. I told a realtor, and I told him about wanting to split the broker co-op. He then proceeds to tell me that what I am requesting is illegal. I obviously won't be using him. I found a community in Stonegate that I like, and he's threatening to "watch" me.

How ridiculous is this??! Feedback, please!
 
legallysound said:
Hi everyone,

I have an issue to bring up. After doing major research, I decided on the homes/communities that I wanted to see. I told a realtor, and I told him about wanting to split the broker co-op. He then proceeds to tell me that what I am requesting is illegal. I obviously won't be using him. I found a community in Stonegate that I like, and he's threatening to "watch" me.

How ridiculous is this??! Feedback, please!
Click to expand...
It is not illegal at all.  Sounds like a typical greedy realtard who is bitter.  I've been doing it for years without any issues.  He's gonna be watching you?  Why don't you tell him that if he even tries you'll report him to the realtor association and the DRE.  Find yourself another agent who will split the broker co-op. 
 
Has it really come to this? What a D-bag realtor.

Better yet, why not file a restraining order for stalking and threatening you? I'm sure the filing fee costs are minimal relative to the education this agent will get for such bad behavior.

My .02c

Soylent Green Is People
 
I will definitely contact the DRE! I noticed that this guy doesn't use his own name but uses his wife's name on all paperwork. The wife is an agent, but I don't see his name on the DRE website. I don't think he's licensed. Are you allowed to use your spouse's name and act as an agent without a license? If not, who's the one being illegal now?


 
legallysound said:
I will definitely contact the DRE! I noticed that this guy doesn't use his own name but uses his wife's name on all paperwork. The wife is an agent, but I don't see his name on the DRE website. I don't think he's licensed. Are you allowed to use your spouse's name and act as an agent without a license? If not, who's the one being illegal now?
Click to expand...
Wow, he's not even licensed.  haha  I wonder if his wife knows what he is doing because she could be at risk of losing her license for her hubby's actions.  You can not act as an agent when you are not a licensed agent, even if your spouse is one.  Please put that idiot in their place for all of us.
 
legallysound said:
I noticed that this guy doesn't use his own name but uses his wife's name on all paperwork. The wife is an agent, but I don't see his name on the DRE website. I don't think he's licensed. Are you allowed to use your spouse's name and act as an agent without a license? If not, who's the one being illegal now?
Click to expand...
This story just gets better.  We need an Expose A Realtor thread for blatant things like this.
 
legallysound said:
Hi everyone,

I have an issue to bring up. After doing major research, I decided on the homes/communities that I wanted to see. I told a realtor, and I told him about wanting to split the broker co-op. He then proceeds to tell me that what I am requesting is illegal.
Click to expand...

Hello legallysound,
I would recommend researching the broker that you choose to work with as thoroughly as you have for the communities you'd like to see. If you can't find them, or anything about them, that should be telling enough...

legallysound said:
I obviously won't be using him. I found a community in Stonegate that I like, and he's threatening to "watch" me.
Click to expand...

It might seem insignificant at first glance, but an important distinction should be that you are (supposed to be) partnering with the person you choose to work with, and not simply "using" him.  If you both have the same goal, which is getting you the home you want with the terms and conditions you want, you'll be better off than being stuck with someone that is "using" you right back.

legallysound said:
How ridiculous is this??! Feedback, please!
Click to expand...

Supremely ridiculous. If you need something as simple as getting registered at one of the homes to qualify, I'd be happy to assist. My fee is $2,500 of the broker co-op that is offered and you keep the rest. If your needs are more involved, we can agree to different terms.

-IrvineRealtor
 
legallysound said:
I will definitely contact the DRE! I noticed that this guy doesn't use his own name but uses his wife's name on all paperwork. The wife is an agent, but I don't see his name on the DRE website. I don't think he's licensed. Are you allowed to use your spouse's name and act as an agent without a license? If not, who's the one being illegal now?
Click to expand...


Is he an old man and is his last name  Fxxxxxl


where xxxxx = something :-)
 
IrvineRealtor said:
legallysound said:
Hi everyone,

I have an issue to bring up. After doing major research, I decided on the homes/communities that I wanted to see. I told a realtor, and I told him about wanting to split the broker co-op. He then proceeds to tell me that what I am requesting is illegal.
Click to expand...

Hello legallysound,
I would recommend researching the broker that you choose to work with as thoroughly as you have for the communities you'd like to see. If you can't find them, or anything about them, that should be telling enough...

legallysound said:
I obviously won't be using him. I found a community in Stonegate that I like, and he's threatening to "watch" me.
Click to expand...

It might seem insignificant at first glance, but an important distinction should be that you are (supposed to be) partnering with the person you choose to work with, and not simply "using" him.  If you both have the same goal, which is getting you the home you want with the terms and conditions you want, you'll be better off than being stuck with someone that is "using" you right back.

legallysound said:
How ridiculous is this??! Feedback, please!
Click to expand...

Supremely ridiculous. If you need something as simple as getting registered at one of the homes to qualify, I'd be happy to assist. My fee is $2,500 of the broker co-op that is offered and you keep the rest. If your needs are more involved, we can agree to different terms.

-IrvineRealtor
Click to expand...

HAHA... I wished I knew I could pay you $2500...  My realtor doesnt do much but open lock boxes for me.  He agreed to rebate me back 25% of the co-op...  i thought about gettin rid of him, but he's a family friend...
 
akim997 said:
HAHA... I wished I knew I could pay you $2500...  My realtor doesnt do much but open lock boxes for me.  He agreed to rebate me back 25% of the co-op...  i thought about gettin rid of him, but he's a family friend...
Click to expand...

I'm not soliciting if you've already got a relationship established... as they say in football "Dance with the one that brung ya."
The right one will be unlocked sooner or later. ;-)
-IR2
 
question:  so how does the co-op and shared co-op actually work? 

Are these amounts credited @ closing?   

Do they just give you checks?   

Does the amount of co-op the buyer receive reduce selling price (that affects prop tax - I assume NO)?     

How does the realtor ensure he is not 1099'd on the gross amount?    How does the buyer ensure he/she is not dinged on this amount as well?
 
akim997 said:
question:  so how does the co-op and shared co-op actually work? 

Are these amounts credited @ closing?   

Do they just give you checks?   

Does the amount of co-op the buyer receive reduce selling price (that affects prop tax - I assume NO)?     

How does the realtor ensure he is not 1099'd on the gross amount?    How does the buyer ensure he/she is not dinged on this amount as well?
Click to expand...
For homebuilders that allow the credit to go through escrow, write up an Addendum stating the credit amount.  Then escrow writes up an escrow amendment which the seller, buyer/s, and the broker must sign.  The credit is limited up to the closing costs (lender costs, interest rate buydown, impound reserves, upfront PMI payment, etc) and design center upgrades for financed buyers.  The homebuilder will not allow the credit to lower the sales price of the home (they are sensitive about keeping values stable for appraisal purposes).  For instances where the homebuilder does not allow a credit through escrow, the agent can cut a check to the buyer after the close of escrow and show that amount as a cost of revenues on the Schedule C (the realtor will be 1099'd by his broker for the entire amount).  The buyer should reduce the cost basis of their home by the credit amount.
 
USCTrojanCPA said:
akim997 said:
question:  so how does the co-op and shared co-op actually work? 

Are these amounts credited @ closing?   

Do they just give you checks?   

Does the amount of co-op the buyer receive reduce selling price (that affects prop tax - I assume NO)?     

How does the realtor ensure he is not 1099'd on the gross amount?    How does the buyer ensure he/she is not dinged on this amount as well?
Click to expand...
For homebuilders that allow the credit to go through escrow, write up an Addendum stating the credit amount.  Then escrow writes up an escrow amendment which the seller, buyer/s, and the broker must sign.  The credit is limited up to the closing costs (lender costs, interest rate buydown, impound reserves, upfront PMI payment, etc) and design center upgrades for financed buyers.  The homebuilder will not allow the credit to lower the sales price of the home (they are sensitive about keeping values stable for appraisal purposes).  For instances where the homebuilder does not allow a credit through escrow, the agent can cut a check to the buyer after the close of escrow and show that amount as a cost of revenues on the Schedule C (the realtor will be 1099'd by his broker for the entire amount).  The buyer should reduce the cost basis of their home by the credit amount.
Click to expand...

Or they can be family and just slide it to you under the table.
 
Nous said:
USCTrojanCPA said:
akim997 said:
question:  so how does the co-op and shared co-op actually work? 

Are these amounts credited @ closing?   

Do they just give you checks?   

Does the amount of co-op the buyer receive reduce selling price (that affects prop tax - I assume NO)?     

How does the realtor ensure he is not 1099'd on the gross amount?    How does the buyer ensure he/she is not dinged on this amount as well?
Click to expand...
For homebuilders that allow the credit to go through escrow, write up an Addendum stating the credit amount.  Then escrow writes up an escrow amendment which the seller, buyer/s, and the broker must sign.  The credit is limited up to the closing costs (lender costs, interest rate buydown, impound reserves, upfront PMI payment, etc) and design center upgrades for financed buyers.  The homebuilder will not allow the credit to lower the sales price of the home (they are sensitive about keeping values stable for appraisal purposes).  For instances where the homebuilder does not allow a credit through escrow, the agent can cut a check to the buyer after the close of escrow and show that amount as a cost of revenues on the Schedule C (the realtor will be 1099'd by his broker for the entire amount).  The buyer should reduce the cost basis of their home by the credit amount.
Click to expand...

Or they can be family and just slide it to you under the table.
Click to expand...

but the family member with the license will still have a tax bill for the entire amount.  sure they can write off against it or i guess you give them their tax portion...
 
Nous said:
USCTrojanCPA said:
akim997 said:
question:  so how does the co-op and shared co-op actually work? 

Are these amounts credited @ closing?   

Do they just give you checks?   

Does the amount of co-op the buyer receive reduce selling price (that affects prop tax - I assume NO)?     

How does the realtor ensure he is not 1099'd on the gross amount?    How does the buyer ensure he/she is not dinged on this amount as well?
Click to expand...
For homebuilders that allow the credit to go through escrow, write up an Addendum stating the credit amount.  Then escrow writes up an escrow amendment which the seller, buyer/s, and the broker must sign.  The credit is limited up to the closing costs (lender costs, interest rate buydown, impound reserves, upfront PMI payment, etc) and design center upgrades for financed buyers.  The homebuilder will not allow the credit to lower the sales price of the home (they are sensitive about keeping values stable for appraisal purposes).  For instances where the homebuilder does not allow a credit through escrow, the agent can cut a check to the buyer after the close of escrow and show that amount as a cost of revenues on the Schedule C (the realtor will be 1099'd by his broker for the entire amount).  The buyer should reduce the cost basis of their home by the credit amount.
Click to expand...

Or they can be family and just slide it to you under the table.
Click to expand...
Hahaha if it were only that easy.  There is a money trail that is left with commissions and the buck (literally) stops with the agent who gets the money.  If an agent cuts a check to a buyer after the close of escrow, it'd be a good idea to have a paper trail back to the buyer if the IRS comes knocking.  :-X
 
USCTrojanCPA said:
The credit is limited up to the closing costs (lender costs, interest rate buydown, impound reserves, upfront PMI payment, etc) and design center upgrades for financed buyers.  The homebuilder will not allow the credit to lower the sales price of the home (they are sensitive about keeping values stable for appraisal purposes).
Click to expand...

what happens when an agent gives a portion of their commission to the buyer on a resale house?  does it have to be used towards closing costs also? 
 
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