*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS^® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.

Q: Can a seller offer buyer broker compensation based on a net sales price instead of the gross sales price?   

A: Yes. Parties to a real estate purchase transaction are free to negotiate the terms of a seller paying a buyer broker. If the parties to a transaction agree to buyer broker compensation paid on a net sales price, then the contract should detail what costs are deducted from the gross price to determine the net price to be used to calculate the compensation amount.  

Keep in mind, most brokerage agreements calculate compensation as a percentage of the gross sales price, and therefore, seller-paid buyer broker compensation will likely not cover the entire buyer broker fee owed by the buyer if it is based on a net sales price.  

Have a question about this article? Submit it to the Legal Hotline!

The Legal Hotline is a member benefit that has been supporting members for over 25 years. Our team of lawyers answers your important questions about real estate transactions quickly and accurately (usually within three business hours!).

Here are some tips to help make the Legal Hotline work for you!