Buyer Agent Commission - Acceptable Contracts / Addenda & Financing Implications
In order for you to be paid, you must contract your commission. Here are the acceptable ways to do so and their implications:
Preferred Methods - Commission Addenda
*Both methods are transparent and clearly communicate how much the BA is paid and who is paying. If "seller" is selected, you are guaranteed that there will be no problems with financing.
Acceptable Methods - Separate Commission Agreements
The TXR-2401 Compensation Agreement Between Broker & Owner or the TXR-2402 Compensation Agreement Between Brokers are both acceptable and you do not need a commission addendum if you have either (though we prefer an addendum in addition to these). If "seller" is selected, you are guaranteed that there will be no problems with financing.
Acceptable Edge Case - 12.A(1)(b)
If you are dealing with an unreasonable seller/agent who refuses to pay a BAC or a portion of your BAC, you should write in the amount into 12.A(1)(b). There will be different limits that a lender will accept, depending on the type of financing, but these limits are all >3%. However, if your buyer needs more closing costs, then it could be problematic.
Buyer Pays at Closing (out of pocket)
Your buyer can always pay some or all of your commission at closing. If this is the case, make sure and notify the lender and title as soon as you go under contract or you will likely lose most/all of this amount due to lending disclosure requirements.