Allowed to contribute some commission as downpayment?

Real Estate Agent with 702 City Realty
I am currently trying to work out a deal with one of my clients.  The home they want to buy is from a builder offering a 14% realtor/buyer co-op.  I have heard that it is illegal for a builder to contribute their incentive as downpayment for a buyer.  But I just would like to know if it's legal to contribute some of my net commission as downpayment for my client?  I was planning to take the whole 14% for the commission, contribute 5% to my buyer, and just take the rest as my commission.  Is this possible?  If not, then is there another way to get around to helping contribute some downpayment to my client?  I am new to this so please bare with me.  Any help would greatly be appreciated.

Comments (2)

Marie Kletke
iNet Realty - Long Beach, CA
Broker - Long Beach Real Estate

Vance, I believe you an contribute towards closing costs, but not towards downpayment. However, depending on your client's loan program, some lending programs will allow not contribution at all.  Best check with lender and with legal helpdesk of your state's DRE

Aug 27, 2007 07:04 PM
Vance Lucido
702 City Realty - Las Vegas, NV
great, thanks for the advice Marie.
Aug 28, 2007 11:56 AM