REAL ESTATE COMMISSION QUESTIONS IN 700 SERIES OF HUD-1 Question: If a real estate agent is retaining some of the borrowers earnest money deposit as part of the agents commission, is that amount listed in the 700-series on the HUD-1?
Yes, if a real estate agent is retaining some of the borrower’s earnest money deposit, the amount of the earnest money deposit applied towards the commission and the party holding the earnest money must be identified on Line 704 of the HUD-1 as Paid Outside of Closing or P.O.C. Only the amount of the commission disbursed at settlement is entered in the columns on Line 703.
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