Bank of America: Understanding Short Sale Agent Commissions

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

The maximum commission for all acceptable transactions is as follows and is paid when the short sale reflects positive mitigation:

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

Flexibility is allowed in the commission structure when the short sale does not reflect positive mitigation* or if the minimum acceptable net proceed** is not met. In these circumstances, the real estate agent may choose to reduce his/her commission to meet minimum mitigation requirements.

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

Acceptable and Unacceptable Short Sale Transactions
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

* Positive mitigation is the amount of loss Bank of America will mitigate by accepting the short sale as opposed to foreclosure.
** 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.