How to Write Buyer Agent Commission Into the 1-4 Family Contract (Paragraph 12)
How to Write Buyer Agent Commission Into the 1-4 Family Contract (Paragraph 12)
Post-NAR settlement, how you write buyer agent commission into the contract matters. Here's how to do it correctly.
The Relevant Paragraph: 12A
Paragraph 12 of the 1-4 Family Residential Contract covers fees. The buyer agent commission goes in Paragraph 12A.
There are two sub-sections:
- 12A(1): Seller's contribution to buyer's closing costs / concessions
- 12A(1)(b): The specific field for buyer agent commission paid by seller
Use 12A(1)(b) to write in the buyer agent commission when the seller is agreeing to pay it.
How to Fill It Out
Scenario 1: Seller agrees to pay buyer agent commission (most common)
In Paragraph 12A(1)(b):
- Enter the commission amount as a dollar figure OR percentage — be consistent with your Buyer Representation Agreement
- Example:
$9,000or3% of the sales price - This amount must match or be consistent with what's written in your Buyer Rep Agreement
Scenario 2: Buyer is paying their own agent commission
- Leave 12A(1)(b) blank or enter $0
- The buyer pays you directly per your Buyer Rep Agreement
- Make sure your buyer understands this before submitting the offer
Scenario 3: Seller offers less than your Buyer Rep Agreement amount
- Enter what the seller is offering in 12A(1)(b)
- Your buyer must make up the difference — confirm this with your buyer before submitting
- Document the buyer's acknowledgment
Common Mistakes
| Mistake | Fix |
|---|---|
| Writing commission in 12A(1) instead of 12A(1)(b) | 12A(1) is for general seller concessions — use the specific 12A(1)(b) line for BAC |
| Mismatching the amount from the Buyer Rep Agreement | Always reconcile before submitting — discrepancies create problems at closing |
| Leaving it blank when seller is paying | If seller agreed to pay, it must be in writing in the contract |
Bonus Commission
If the seller is offering a bonus above your written commission, do not add it to Paragraph 12 without confirming with your ASM first. Bonus treatment has compliance implications.