Skip to content
BOL Conferences
Thread Options
#2300373 - 08/09/24 06:17 PM NAR Settlement & Buyer commission on LE?
Compliance Nut Offline
100 Club
Joined: Feb 2016
Posts: 241
Is there a requirement in Florda to have the buyer’s commission (as reflected in the contract) included in the LE before August 17th?

I understood that it was effective 8/17, but that some states have different dates, and I just want to make sure we are compliant/

Thanks!

Return to Top
#2300395 - 08/11/24 11:39 AM Re: NAR Settlement & Buyer commission on LE? Compliance Nut
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 84,938
Galveston, TX
If you have copy of the contract and it is known to the bank that the buyer is going to have to pay that fee, then the "good faith" provisions will kick in and it would be required to be disclosed on the LE. Also, if you mess up on "good faith", even if a fee is not normally subject to any tolerance test, it will move that fee to zero tolerance.

3. Good faith requirement for property taxes or non-required services chosen by the consumer. Differences between the amounts of estimated charges for property taxes or services not required by the creditor disclosed under § 1026.19(e)(1)(i) and the amounts of such charges paid by or imposed on the consumer do not constitute a lack of good faith, so long as the original estimated charge, or lack of an estimated charge for a particular service, was based on the best information reasonably available to the creditor at the time the disclosure was provided. For example, if the consumer informs the creditor that the consumer will obtain a type of inspection not required by the creditor, the creditor must include the charge for that item in the disclosures provided under § 1026.19(e)(1)(i), but the actual amount of the inspection fee need not be compared to the original estimate for the inspection fee to perform the good faith analysis required by § 1026.19(e)(3)(iii). The original estimated charge, or lack of an estimated charge for a particular service, complies with § 1026.19(e)(3)(iii) if it is made based on the best information reasonably available to the creditor at the time that the estimate was provided. But, for example, if the subject property is located in a jurisdiction where consumers are customarily represented at closing by their own attorney, even though it is not a requirement, and the creditor fails to include a fee for the consumer's attorney, or includes an unreasonably low estimate for such fee, on the original estimates provided under § 1026.19(e)(1)(i), then the creditor's failure to disclose, or unreasonably low estimation, does not comply with § 1026.19(e)(3)(iii). Similarly, the amount disclosed for property taxes must be based on the best information reasonably available to the creditor at the time the disclosure was provided. For example, if the creditor fails to include a charge for property taxes, or includes an unreasonably low estimate for that charge, on the original estimates provided under § 1026.19(e)(1)(i), then the creditor's failure to disclose, or unreasonably low estimation, does not comply with § 1026.19(e)(3)(iii) and the charge for property tax would be subject to the good faith determination under § 1026.19(e)(3)(i).
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top