Compensation Questions That Come Up in Contract Negotiation

Published October 10, 2026 · Recalde & Friedman, PLLC · For real estate agents

Can the buyer ask the seller to pay the buyer's broker?

Yes. NAR's FAQs say a buyer can always ask their broker to make it a term of the offer that the seller pay certain compensation to the buyer's broker. Standard of Practice 16-16 of the REALTOR® Code of Ethics still bars using an offer to try to change the listing agreement, and bars delaying or withholding an offer while negotiating the broker's own compensation.

Where should the term go?

Use a document built for it rather than a sentence squeezed into "Additional Terms":

• Rider GG (Seller's Agreement with Respect to Buyer's Broker Compensation) makes the contract contingent on the seller or listing broker signing a separate compensation agreement with the buyer's broker on terms acceptable to the buyer. If that doesn't happen, the buyer can cancel.
• Rider FF (Credit Related to Buyer's Broker Compensation) gives the buyer a seller credit that the buyer chooses to apply toward the broker's fee.
• A separate compensation agreement signed directly by the seller, or by the listing broker with the seller's written approval.

Each of these lands differently on the Closing Disclosure and in the lender's review. See seller credits and buyer-broker compensation.

What if the seller offers more than the buyer agreement allows?

The broker can't receive more than the amount in the buyer agreement from any source. NAR's FAQs say this applies to bonuses and other incentives too. Ask for the right amount in the offer. If the buyer and broker want to change the fee, they must amend the buyer agreement in writing, and the amendment must also meet the settlement terms.

What if the seller offers less?

The buyer agreement controls what the buyer owes. If the buyer has agreed to pay any shortfall, the buyer needs the cash at closing. Commissions can't be financed into Fannie Mae, Freddie Mac or FHA loans, and VA buyers face added limits. Confirm the numbers with the lender before the offer goes out.

Can a seller advertise a concession?

MLSs may allow seller concessions, such as a credit toward the buyer's closing costs, but the concession can't be limited to or conditioned on the buyer using or paying a buyer broker. NAR's FAQs note that an MLS concession usually isn't binding until it's in a signed contract. Put it in the contract.

Can I tell my buyer what I'll be paid and who pays?

Yes. NAR says REALTORS® must tell buyers this. Steering buyers toward or away from listings because of compensation is prohibited under the Code of Ethics.

Checklist for the offer

• Buyer agreement amount and the amount requested from the seller match, or the shortfall is addressed in writing.
• The right rider or agreement is attached and filled in, with no blanks.
• The lender has approved the structure and any credit amount.
• The Broker section names the correct brokerages.
• The title company gets the same figures when the file opens.

Frequently asked questions