Assigning Contracts Were Seller May Not Want To Pay The End Buyer's Agent Commission.

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Is it really a seller?? That is the question.

If it's a wholesaler presenting themselves as a seller or someone who just has a property under contract to assign then they have limited equity.

Getting someone to pay a middleman a fee and buyers broker in that case is a tough nut to accomplish as there is generally not enough money to go around. If it's a true seller that has substantial equity left from the sales proceeds then it is easier to get them to pay out to buyers broker.

If the property is not listed, the seller has absolutely no obligation to pay the buyers agent. Most buyers agent contracts say the buyer is obligated to pay the buyers agent, unless it is a listed property and the seller is willing to pay. 

Yes it can be paid from the assignment fee if the wholesaler and the buyers agent are happy with that. I see no reason why the agent wouldn't be happy with it as he or she is getting paid. He or she won't care where the money comes from.

Of course it I am the wholesaler I am not going to let that happen if the agent was brought on after the assignment was signed. If the end buyer wants an agent involved and brings them in after the agreement has been reached then the end buyer should be paying for that.

Seller's have NO responsibility to pay any commissions unless they agree to ahead of time on paper via a Listing Agreement or Compensation Agreement with a Licensed Broker (Agent). 

Buyer's Agreements, however, make the BUYER responsible for the Agent's commission.

Wholesalers CAN pay an Agent's commission but one would have to ask why would they.

If you were the one under contract with the Seller as the "Buyer" and you turn around and "Wholesale" it to a 3rd party who happens to be working with an "Agent", the original SELLER does not have to pay the Agent, The WHOLESALER does not have to pay the agent (unless the Assignment Agreement states the Wholesaler will) and the END BUYER may or may not have to pay the Agent which depends on any agreement, or lack thereof, the End Buyer and Agent had in the first place./

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Georgia Real Estate Commission says:

A “Finder’s Fee” is an amount of money given to a person who brings a buyer and a seller of real estate together. A “Referral” fee is one type of a “Finder’s Fee”. Labeling a payment a “Finder’s Fee” does not avoid the fact that the fee is compensation received for providing real estate brokerage services and an individual must have a real estate license in order to receive such compensation . The Commission has the authority to issue a Cease and Desist Order to stop an unlicensed person from practicing real estate and fine the individual $1,000 for each day or each violation when he/she practices real estate without a license. Chapter 43-30-30 .

IF You are performing services for another, that is defined as Practicing Real Estate. IF you "control" the property and are assigning your "Equitable Interest", that's wholesaling.

Clarity is key to a successful future./

Originally posted by @Account Closed :

In cases where an end buyer will be using their buying agent after signing a wholesaler's assignment agreement,  and there is the chance the seller will walk on the deal because of the buying agent's commission,  can the buyer's agent's commission be paid out of the assignment fee at closing? 

Yes, you can basically, but you don't pay the commission unless you have an agreement to sell/assign with that end buyer's agent. Otherwise, you're paying an additional commission to the seller who in turn pays his listing agent who hands it over to his broker who in turn splits the commission with the selling broker who pays the selling agent and the listing broker then pays the listing agent. The total commissions may be adjust to say 9% instead of 6%.

But, in reality, it's not up to a seller, he owes 6% to that listing broker, that broker splits the commissions to those agents/brokers involved under the split commission requirement of their Board of Realtors which they are members of.

Investors need to understand what Realtors do, their agency relationships, how commissions are paid and split and who is responsible for settlements.

Wholesaling, you're not involved in the sale as you assigned the contract, you don't pay anyone unless you have an agreement to do so and you take title in the process, you can't sell a property you don't own, you sold the contract, not the property.

Any contract might be entered into, you can pay an agent for consultation if his broker allows it, but why would you go there?   :) 

I want to wholesale a condo want to use the a,b,c,, method . I want a is the original seller b is me the wholesaler c is the assigned buyer so i want to get c to pay a and pay b any sugestions

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