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#2122614 - 03/20/17 10:38 AM Brokers Commission on Closing Disclosure
Need Assistance Offline
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Registered: 10/06/09
Posts: 208
If we are in a non disclosure state and providing a separate Closing Disclosure to buyer and seller, does the portion of the RE commissions for representing the seller belong on the CD for the buyer? I know the buyer's agent portion that the seller is paying belongs on the buyer's CD, but does the seller's agents portion belong on the CD? Can you also provide a citation for this? I see the commentary for 1026.38(g)(4) but it is not specific as to buyer vs. seller agent fees.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2122618 - 03/20/17 10:47 AM Re: Brokers Commission on Closing Disclosure [Re: Need Assistance]
rlcarey Offline
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Registered: 07/16/01
Posts: 61920
Loc: Galveston, TX
I think is it pretty clear. Real estate commissions, regardless of who is charged or who is paying must appear on the borrower's CD.

4. Real estate commissions. The amount of real estate commissions pursuant to ยง 1026.38(g)(4) must be the total amount paid to any real estate brokerage as a commission, regardless of the identity of the party holding any earnest money deposit. Additional charges made by real estate brokerages or agents to the seller or consumer are itemized separately as additional items for services rendered, with a description of the service and an identification of the person ultimately receiving the payment.
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#2122639 - 03/20/17 11:17 AM Re: Brokers Commission on Closing Disclosure [Re: Need Assistance]
Need Assistance Offline
100 Club

Registered: 10/06/09
Posts: 208
Do state non disclosure laws override that? In MT, we are not allowed to combine the seller's $$ information onto the borrowers CD. So can we show seller charged, seller paid fees on the CD? The seller's agent is hired by the seller, and the fee is not public information. The buyer's agent is hired by the buyer, so we can show that even though the seller pays. Just wondering if we are going to be breaking the state law related to disclosure by putting the seller's agent fees on the buyer's CD??

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#2122652 - 03/20/17 11:39 AM Re: Brokers Commission on Closing Disclosure [Re: Need Assistance]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 61920
Loc: Galveston, TX
Just wondering if we are going to be breaking the state law related to disclosure by putting the seller's agent fees on the buyer's CD??

You are going to have to ask your State's Attorney General. Are you masking the Sales Price from your CD's also?

Not only that, but the Montana non-disclosure law impacts county clerks and not the bank or settlement agents. If you are disclosing the sales price to the borrower - don't you think they already know it?

15-7-308. Disclosure of information restricted -- exceptions. (1) Except as provided in subsection (2), the certificate required by this part and the information contained in the certificate are not a public record and must be held confidential by the county clerk and recorder and the department. This is because the legislature finds that the demands of individual privacy outweigh the merits of public disclosure. The confidentiality provisions do not apply to compilations from the certificates, to summaries, analyses, and evaluations based upon the compilations, or to sales data used by the department to value residential property in a property taxpayer's market model area after the property taxpayer signs a written or electronic confidentiality agreement.
(2) The confidentiality provisions of this section do not apply to the information contained in the water right ownership update form or any other form prepared and filed with the department of natural resources and conservation pursuant to 85-2-424 for purposes of maintaining a system of centralized water right records as mandated by Article IX, section 3(4), of the Montana constitution. A person may access water right transfer information through the department of natural resources and conservation pursuant to the department's implementation of the requirements of 85-2-112(3).
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#2122715 - 03/20/17 02:39 PM Re: Brokers Commission on Closing Disclosure [Re: Need Assistance]
Darth HMDA, CRCM Offline
Platinum Poster

Registered: 12/13/13
Posts: 983
Loc: CA
Agree with Randy on the citation. This was clarified by the CFPB in a KBYO webinar last year on 04/12 (Link below). There are a number of threads on here about disclosing broker commissions.

https://www.webcaster4.com/Webcast/Page/577/13784


As far as the state issue - I have no idea smile

good luck!
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The opinions expressed are mine, do not represent the opinions of my employer, and they are not to be taken as legal advice.

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