The time has come for mortgage companies to rethink their prohibitions against home buyers being able to finance the buy-side of the real estate brokerage sales commission as part of the home-buying transaction. Bans against such financing exist because the realty commission is not part of the asset value of the property and is not a contractual obligation of the buyer, and thus, in theory, shouldn't be included in the buyer's financing. However, the ban against buy-side commission financing distances buyers from their own brokers, creates conflicts of interest and perpetuates a split system that's a detriment to real estate. The seller's payment of the brokerage commission, and particularly the buy-side portion of that amount, exists mainly on paper since it is the buyer, not t...
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