how I can pay an agent on properties they don't really do anything on. if i have properties i want to sell, but i'm not in the area and need an agent to help do a few things, how can i pay them on the HUD?
1) What exactly are they doing?
2) You cant pay the agent directly, it needs to be paid to their broker.
Not all agents have brokers. I was asking the terminology for the HUD.
Simply give written instructions to the closing agent, they will put it on the HID and distribute the funds. And yes, All actively licensed agents have a broker, unless they are a broker, and yes the payment has to go to the agent's brokerage.
@Ann Newburn all real estate transaction that require a real estate agent do in fact have to be through a sponsoring Broker... unless the agent you are referring to is actually an inactive agent and not currently practicing real estate, then you would be correct. The only other exception would be if your agent is the sponsoring broker for their firm/sole proprietorship. Your questions is still very vague. What do you mean they "hardly do anything?"
I don't think it has to go on the HUD at all. For example, let's say that you want an agent to drive by one of your houses every week, just to do a check up on it (maybe it's empty or whatever). You can write a check directly to their broker. Doesn't have to go on the HUD.
But, if you are wanting the payment to be paid out of the proceeds of the sale, it can go on the HUD and be done that way. There's a place on the HUD for commissions. And commissions don't necessarily have to be a "percentage". They can be a flat fee, or a fee for service.
In PA, you would just have to provide a list of closing costs to the title company/closing agent. You could simply list something like 'Services Provided' and have a figure paid out to the agent at closing. The check would be cut by the closing agent at closing made payable to the agent as long as you that is what you want. This may differ between states, though.
Hope that helps!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.