[WSBARP] Attorney Acting as Broker

[Craig Blackmon]

Yes, I forgot that one: if you are paid buyer commission, all of it is
taxable as B&O, regardless of whether you are contractually obligated to
pay any or all of it to anyone else (e.g. the buyer, via a rebate). Another
wrinkle to keep your eye on...
Craig

Craig Blackmon, Attorney at Law
Seattle Real Estate Lawyer <http://www.seattlepropertylawyer.com/>
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Seattle WA 98121
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<http://www.seattlepropertylawyer.com/blog?category=Buy+without+an+Agent> | How
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 | RE Glossary
<http://www.seattlepropertylawyer.com/blog?category=Real+Estate+Glossary>
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On Mon, Sep 26, 2016 at 2:11 PM, Spencer Stromberg <spencer at lucentlaw.com>
wrote:

> I've represented client in real estate transactions many times where there
> is a listing agent representing the seller. Residential agents tend to be
> very skittish of this situation, but commercial brokers are more
> comfortable with it.
>
> I've never tried to get the commission paid to me or to rebate it to my
> client. I have normally negotiated a discount on the purchase price equal
> to 1/2 of the total commission, though. If the seller is willing, you
> likely could negotiate a credit at closing for the selling side of the
> commission.
>
> As Craig Blackmon mentioned, I would stay away from the commission/rebate
> situation unless it is fully disclosed to all parties. I would also want to
> consider the B&O tax implications for your firm of receiving the
> commission, and whether the rebate to the client is an allowable deduction
> from your taxable receipts.
>
> All in all, I think a negotiated credit to your client is a more straight
> forward way to handle things.
>
>
> Spencer A. W. Stromberg
> Attorney at Law
>
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> On Mon, Sep 26, 2016 at 1:14 PM, Jared Hawkins <jared at hawklaw.biz> wrote:
>
>> Distinguished colleagues: I’ve been approached by a client that would
>> like me to serve as his agent in a real estate transaction so that I can
>> qualify for the buyer’s broker’s commission and then rebate a portion of
>> the commission back to him.  I have reviewed Chapter 18.85 Revised Code of
>> Washington (regarding broker licensing) and see that attorneys are exempt
>> from the broker licensing requirements.
>>
>>
>>
>> Does anyone have experience acting in this capacity?  Does anyone advise
>> against doing this (or are there issues I’m missing)?  I don’t feel real
>> comfortable with the idea so I am exploring the relevant issues before I
>> decide what to do.
>>
>>
>>
>> Thanks for your help.
>>
>>
>>
>> Jared N. Hawkins, Attorney at Law
>>
>> jared at hawklaw.biz
>> Hawkins Law, PLLC
>> Phone 509-529-5175 / Fax 509-529-2564
>> 2225 Isaacs, Suite A/ Walla Walla, WA 99362
>>
>> Visit our website at hawklaw.biz.
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