|
Posted by paultry on July 30, 2009, 10:06 pm
Please log in for more thread options Thunderbird wrote:
> wrote:
>>
>>> In this particular case the rebate will not appear
>>> on the HUD closing statement.
>> Well, we haven't learned a dang thing. What you have done is jack up the
>> sales cost for money you are getting back. The house cost you $X less the
>> rebate to you. You have caused the county tax assessor to look at that
>> house closing price at the higher gross and bump up the value to that. In
>> addition as often as that closing is used as a comp, you jack up the
>> surrounding property values for tax and other purposes.
>>
>> Yet, the house was worth the listed price LESS the rebate amount (the net of
>> what you paid for it).
>>
>>> I think that the buyer's broker's commission generally
>>> doesn't appear on the HUD
>> It does. It always does for all financial items paid for with regard to
>> that closing.
>>
>> What's not shown are "off the books" deals - like this one is. If you don't
>> tell the closing attorney about your deal, it's not on the HUD-1.
>>
>> I'm not going to say I'm shocked that these types of things are making a
>> comeback.
>>
>> No lesson learned after trillions in losses in real estate.
>>
>> --
>> Paul Thomas, CPAwww.paulthomascpa.com
>
> I'm stumped by Paul T's rant.
> It's actually the normal real estate broker is the one who's behavior
> is more suspect.
> If a house is listed with a 6% commission (MLS with a 50% split) and a
> buyer or their broker asks the listing broker to reduce the commission
> to the seller by let's say 1%, and then split the commision 3% / 2%
> (so the selling broker is not giving up anything and everything will
> be on the HUD-1) they will generally balk at this idea (at least in my
> state).
> I'm not sure why (I can only guess), but that's the way it is.
> Personally I had a previously experience where I had no buyer's broker
> and made an offer for property directly to the listing brokerage and
> asked that they reduce their commission to the seller given that they
> will not have to split the commission as is usual and they refused. I
> found out later that this is normal.
>
> There's nothing illegal or unethical of what this discount broker is
> doing, it is just non-standard and therefore brings up the tax
> question I submitted. If you want to blame someone for creating this
> business model and the effect it has on appraisal values, blame the
> run-of-the mill realtor and their clique of so called "competitors"
> who do their best to protect the golden rule of a fixed 5 or 6%
> commission.
>
If the broker is a REALTORS®, his own professional
association recommends that he make full disclosure and show
the rebate on the HUD Settlement Statement
http://www.realtor.org/archives/lawjan06
Doing it the "non-standard" way gives the transaction the
appearance of impropriety - never a good thing in tax
issues.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap