This is performing agency service for you, and they'll earn realty commissions, so this is their initial incentive and compensation.

We reported this fee in box 7 of the 1099-MISC as non employee compensation.

- I don't have a license, can I still manage property for my relative and get no financial compensation for it?

John Reed has some thoughts on this here:The ethical standard of suitability in real estateWhat are your thoughts about how much information needs to be disclosed to buyers or sellers and how much they need to be compensated for assuming non-disclosed risk to keep things ethical?

Back end can technically go to 45%, I think, but only if excellent credit and compensating factors that will improve the ratio in the next 12 mths, for example.

I’d continue to honor my offer if seller agrees to compensate to some extent.

It is only fair to request compensation for that effort.I have also worked for borrowers - including rewriting documents for no compensation - only to have the borrower inform me that another lender funded their loan request - often approved with the document that I composed.There are two sides to the upfront fee issue.

Who pays the premium is usually by local custom, usuallt one pays for the search the other pays for title coverage.Taxes are pro-rated to the day of closing, you pay yours and they pat thiers, how taxes are collected depends on when you close, like December or in April for example as tax liability can be compensated by credits to the transaction, assumptions of escrows or paid at settlement, which goes to local custom.

So, you can either get licensed (my recommendation) or you'll have to figure out another way they can compensate you.The best way I can think of to get compensation is to use these agents to list your properties when you sell, but to do it at a reduced commission to compensate for the leads you sent.

By the end of the project I took a small portion as my compensation about $28k (which is specified in the LLC agreement as a percentage of profit before capital distribution).