Paragraph 27 of the standard Residential Contract of Sale states the names of the brokers and further states that “Seller shall pay Broker any commission earned pursuant to a separate agreement between Seller and Broker.” In practice, the brokers will typically circulate their invoice including their New York State license numbers prior to the closing. At the closing, the Seller’s attorney will pay the brokers out of the downpayment funds being held in escrow for the Seller. When the Purchaser is obtaining a mortgage, the Seller’s attorney may, upon request, provide the brokers with a copy of the lender’s Closing Disclosure for the Seller.
*Thank you for taking the time to read this article. This article is part of our “From Contract to Closing; Demystifying NY Residential Real Estate” Series. Other aspects of residential real estate transactions in New York are discussed in other Parts of this series.
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