Special offer

Who pays Realtor commissions in a Florida short sale?

Real Estate Agent with Reid Real Estate Group LLC

Realtor commissions in short sales: How can upside down sellers afford Realtor fees or closings costs if there's no money in the home to pay for one?

In almost all Florida real estate sales the seller pays for all customary closing costs out of the proceeds of the sale. In a short sale, where there are no proceeds for the seller, these same closing costs are still due but things work just a bit differently. So who pays the Realtor fees?

Short sale closing costs are paid out of the proceeds of the sale, with the lenders agreement.

In a short sale, the seller’s lender will allow these same customary closing costs to be paid out of the proceeds of the sale, including:

  • Realtor commissions
  • Conveyance taxes
  • Adjusted real estate taxes
  • Legal fees
  • Seller paid concessions to the buyer
  • Junior lien payoffs
  • Seller relocation assistance
  • Recording, wire, courier fees etc.
The lender accepts the remainder of the funds as short payoff for the loan balance. 


Posted by

VOICE OR TEXT 860.416.1255
Minna Reid is a Jacksonville Realtor and Broker Associate with Fathom Realty, serving the greater Jacksonville, Florida area and the Jacksonville Beaches. Minna's focus is foreclosure preventionshort sales, and probate sales. Since 2007, Minna has helped hundreds of home sellers and buyers move on to the next chapter of their lives and she has the expertise to get you through even your most complicated real estate transactions smoothly, from listing your property to closing the sale! 
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Minna so even though the Seller does not directly pay the commission, the Seller side of the transaction still pays for the commission.  Correct?

Mar 27, 2023 11:15 AM
Minna Reid

Yes- all the seller side costs come out the sellers proceeds, with the lenders approval. 

May 01, 2023 11:18 AM