Understanding Short Sale Agent Commissions
Bank of America pays commissions to licensed real estate professionals who close acceptable short sale transactions.
Commissions are:
- Allocated from the sale's proceeds to qualifying real estate agents or attorneys at closing
- Calculated as a percentage based on the total/gross sales price of the property
- Usually divided between the buyer and seller agents, as per mutual agreement
Sale Price
|
Maximum Commission
|
$0 -
$49,999
|
$3,000
|
$50,000 - $999,999
|
6% of
the total price
|
$1
million - $2 million
|
5.5 %
of the total price
|
>
$2 million
|
5% of the total price
|
Exceptions:
- Dual agents unrelated to either party will receive a 4% commission
- In some situations, commission is limited per investor guidelines/investor approval and may vary
In an acceptable transaction, commissions will always be paid within the following guidelines:
Related Party
|
Connection
|
Commission Paid?
|
Buyer (Including Individuals Representing Entity Buyer)
|
Representing self with valid license
|
Yes
|
Related/affiliated with selling agent
(agent representing buyer) |
Yes
| |
Related/affiliated with seller
|
Short
sale declined
| |
Related/affiliated with listing agent
|
Short
sale declined
| |
Acting
as the listing agent
(agent representing borrower) |
Short
sale declined
| |
Seller (Homeowner)
|
No
connection to any party
|
Yes
|
Representing self with valid license
|
Short
sale declined
| |
Related/affiliated with selling or listing agent
|
Short
sale declined
| |
Related/affiliated to buyer
|
Short
sale declined
| |
Acting
as selling agent
|
Short
sale declined
| |
Dual Agent
|
Dual
agent unrelated and unaffiliated to buyer or seller
|
Yes
|
All
others
|
Short
sale declined
|
** Minimum acceptable net proceed is the amount the investor requires to complete the short sale transaction.
An eligible short sale transaction is made on an arm's-length basis, meaning the buyer and the seller have no personal, familial or professional (business associate, business interest) relationship and the property is listed for sale on the open market at fair market value. There may not be any actual or implied conflicts of interest.
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