Real Estate Commission - What to do?
Posted: Thu Apr 12, 2018 11:21 pm
Hello, I bought a house where my buyer's agent agreed to give me back 2% of the 3% Buyer's agent commission. This was a separate agreement between her and me and it was not on the HUD-1 form. My agent worked for a broker and the broker issued to her a 1099 form for the full 3% of her commission. My agent kept a portion of the 2% by saying that it is her taxable income and did not return the full 2% to me. Is this correct? How should she handle the 2% that was to be returned to me? Should this be treated as a business expense on her tax forms? Please help. Thank you.