What is the proper placement of fees on the CD when the borrower's earnest money is held by the realtor to satisfy the seller's real estate commission fees. Do we show a split in the amounts paid at closing and before closing on page 2 Section H (Other) where those commissions are itemized? Or, since the seller did not technically pay the commission before closing, do we show the net amount paid at closing and itemize the two amounts on Page 3 Section N of the seller's summary? I've thought about this until I've totally confused myself!

I am not sure, as in most States an earnest money deposit becomes a credit toward the down payment and closing costs of the buyer unless they default on the contract. If the buyer has assumed some responsibility to pay part of the real estate commissions, that would be a separate entry in the buyer's column on Page 2 with the deposit reflected in the buyer's column on Page 3.

Thanks, Randy. Does this seem a little squirrely (I'm thinking BSA now) to you? There are two realtors: the one holding the deposit is the auction company; he gets 1%, which is the amount of the earnest money. Instead of bringing the check to closing, he will just keep it. In addition to figuring out how to disclose the CD, I'm also wondering if something more sinister is going on. Am I reading too much into it?

Most States have very specific requirements for someone holding an earnest money deposit and I know of none that allow the earnest money trustee to keep the money. Might want to bounce this off of your title company/attorney.

Oh, I intend to...thank you much!

Unless it's not true earnest money and is money owned regardless of closing or not to be paid to the auction company, payable to the auction company, I would disclose it all on the CD. I vote disclose because they are still holding which blows theory 1 out the door.
I would:
Credit check back, as normal EM would be.
Charges to Auction company [1% commission] paid by buyer
Assuming commission is owed to selling Realtor - paid by whomever the contract says will pay it...likely the buyer since it was auctioned.

Yes- if it is truly just a fee owed to the auction company and they have already given the money to the auction company, then it would be nothing more than an entry in Section H showing Paid Before Closing by the buyer.