Seller Credit Matches the broker commission?

Written By J land

For Lender to review.

If you’re reviewing the final closing statement and notice a Seller Credit to Buyer for the Buyer’s Broker Commission, don’t worry — this is normal, correct, and fully compliant with today’s California real estate laws.

Let’s quickly break it down:

📜 1. Buyer Promised to Pay Their Broker (BRBC)

The Buyer Representation and Broker Compensation Agreement (BRBC) says:

  • 🧑‍💼 The Buyer agrees to pay their own Broker.

  • 📑 If someone else (like the Seller) pays the Broker, that amount reduces the Buyer’s obligation.

🔹 Excerpt from BRBC:

"If Broker receives compensation from Seller or others, the amount shall be credited against Buyer’s obligation." (See attached BRBC screenshot above)

🏡 2. Seller Agreed to Cover Buyer’s Broker Fee (RPA)

The Residential Purchase Agreement (RPA) says:

  • 🏡 The Seller agrees to pay an amount toward the Buyer’s Broker fee out of their proceeds.

🔹 Excerpt from RPA:

"Seller agrees to pay, out of transaction proceeds, X% toward Buyer’s obligation to compensate Buyer’s Broker."

👉 (See attached RPA screenshot.)

🔎 3. Why It’s Shown as a Seller Credit

Because:

  • 💳 The Buyer is responsible for paying the Broker (per BRBC),

  • 🏦 The Seller agreed to cover it (per RPA),

  • 📋 Escrow properly shows this as a Seller Credit to the Buyer, who then uses it to pay their Broker.

✅ This method complies with the contract, DRE rules, lender guidelines, and RESPA requirements.

✨ Quick Summary:

  • The Buyer is responsible for the Broker’s payment (BRBC). ✅

  • The Seller agreed to cover it through escrow (RPA). ✅

  • It is shown as a Seller Credit to Buyer. ✅

Fully compliant. Fully documented. No issues for lenders.

📞 Questions?

If you have any questions about this or any part of your transaction,
please feel free to contact our team — we’re always happy to help

949.881.1000

Team@StarlightEscrow.com

J land
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