Offer Asking Realitor for 1% Back at Closing Illegal?

Offer Asking Realitor for 1% Back at Closing Illegal?

We are meeting with real estate agent tomorrow and hoping for some input and advice before then...

We made an offer on a piece of property and since we are willing to use the listing agent (sellers agent) as our agent (buyers agent) we included in our offer this wording as I have seen Dean mention and others too:

"because we are not bringing in a Realitor on our end you could represent both the sellers and the buyers. With that in mind we would like 1% back from you at closing. "

Our Realitor informed us today that this is illegal in Oregon...calling around and trying to find out reason I was told we can't share in her commission (only licensed people can do that) this asking for a share of her commission or not?

What do you know about this...and what can we do to gain a benefit as buyers from using the same agent by using a different language or technique if this is truly illegal? Or maybe there is just a different way to word the offer?

Thanks you so much.
Real and Chere


Very interesting. I cant

Very interesting. I cant wait to see what the answer entails. Thanks for posting your scenario! Helps all of us learn.


Success and Nothing Less!


My understanding of the laws in Arizona, is that it would be illegal for the agent to give you a check. You can however, have the Agent cover some of your closing costs.




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In MN you can ask them to decrease their commision don't think you can ask them for money back. Maybe you should try that tactic.



Cathy B

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Al is...

correct. The agent cannot give you a check because that is illegal. However, asking the agent to help with closing cost by giving up the 1% of their commission is not illegal. Perhaps you can rephrase it by saying that since the agent is representing both you and the seller that the only way you can afford the property is if the agent would be willing to help cover some of the closing cost equivalent to 1% of their commission. Good luck...

Press on...


It is always a good idea to check with your state to see what can and can not be done.

However, before you sign a buyers agent agreement to have this realtor represent you, talk about their commission and percentages at that time.
Make sure everything is agreed upon at that point. But remember, these realtors have to check with their brokers to make sure it is ok. Sometimes it is set by the brokers as to what a realtor can and can not get for commission. Or what they can and can not do.

Good Luck

Carpe Diem
Stacey :0)


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I never sign a buyer's agreement. I just tell the agents that I don't have one agent, I use several agents and whomever brings me the deal is who gets to keep the 6% commission. The only document I sign is when they put the offer in, it says that they are representing both the buy/seller or just the buyer for this particular transaction. I find if the agents know that they're competing for my CASH with other agents, they throw me deals more often.

Press on...

These guys are right...

Asking the agent for part of his commission is illegal. It can be construed as impersonating a licensed RE agent, which is at the very least, fraud. It's all about what you say, and how you say it. What you need to do is ask the agent to take a reduced commission (say 4-5% instead of the traditional 6%), since he is representing both sides of the transaction. If he says taking a smaller commission is illegal, now you're being lied to, which is now fraud on his part. If he balks at taking a smaller commission, simply remind him you can bring in an agent to represent you, which will immediately limit his commission to no more than 3% of the deal. This technique is especially effective.

The legal way to ask for money in a deal is to call it a concession. Dean explains this in his books. If you're looking for the seller to cover your closing costs (or at the very least, split them with you), or if you want a concession for anything else under the sun, simply make it part of your offer/negotiations. If you're looking to receive cash at closing, you need to make sure you're getting more credits than charges on the HUD-1. The closing agent will write you a check for the difference. As Dean covers, there are plenty of ways to make a "no money down" deal. Good hunting, everyone... Smiling


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Excellent post Blue Eyed Daddy! One thing that I would add, is that you could ask the agent to loan you his commission in the form of a promissory note. This agent can get this money back any way he sees fit. Whether it is through monthly payments, selling the note at a discount, or completely forgiving the endebtedness altogether. Good job guys, way to talk through a difficult subject. I hope that this additional information helps!


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