So I'm fairly new in this game.
I'm a partner in an LLC with two very close friends. I'm a licensed Realtor, they are both unlicensed contractors.
We recently bought a Fannie Mae property and I was compensated 1% commission as the buyer's agent.
What is the right thing to do? Should I funnel that commission back through the LLC as part of the over deal? Or should I keep that commission as personal income? I'd like to do the right thing and I'm just curious how this topic is handled in most cases? It was a nominal amount of 729$...but for the sake of being fair I'm trying to gauge what the collective response would be.
I agreed on listing the property for no fee (on the listing side) after repairs but ultimately my partners feel that the money from the buyers commission should be treated as profit to the LLC. After some thought, I agree with them.
You should keep the commission to yourself. You earned it through your own license and therefore should be compensated. If it were 3% commission you could consider splitting the commission. You have to spend $$ to maintain your license and you spent time, $, and effort to earn your license. On top of it you are listing it for free. This is no brainer. In future if you want to avoid this get another realtor to handle the transaction.