BrokerageIndustry News

HUD clarifies flat-fee disclosure

Brokers can combine commission, flat fee on HUD-1
Published on Feb 25, 2010

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Real estate brokerages may collect both percentage-based commissions and flat fees, disclosing the combined charges on a single line of the HUD-1 settlement statement, as long as the charges are spelled out in the real estate broker's listing agreement or buyer's broker agreement.

The U.S. Department of Housing and Urban Development's top lawyer, Helen Kanovsky, detailed procedures for disclosing real estate broker and agent commission fees in a Jan. 22 letter to Jay Varon, a Washington, D.C.-based attorney who represents real estate brokerages.

HUD, in rolling out new standardized disclosure forms under the R