Real Estate Commission from Sale of Subject Property refers to the Borrower’s (i.e., buyer’s) portion of a real estate commission earned from the sale of the property being purchased. Mortgagees (Lenders) may consider Real Estate Commissions from the Sale of the Subject Property as part of the Borrower’s acceptable source of funds if the Borrower is a licensed real estate agent. A Family Member entitled to the commission may also provide it as a gift, in compliance with standard gift requirements. The Mortgagee must verify and document that the Borrower, or Family Member giving the commission as a gift, is a licensed real estate agent, and is entitled to a real estate commission from the sale of the property being purchased.
For additional information see Handbook 4000.1 II.A.4.d.iii(Q) or II.A.5.c.iii(Q) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh