Markdown_files/FHA handbook/page_1716.md

# IV. CLAIMS AND DISPOSITION

## B. Title II Disposition

### 2. REO Property Disposition

#### (b) Maximum Commission

- For sales of vacant lots, HUD will pay commissions totaling not more than 10 percent of the bid price.
- For all other sales, HUD will pay commissions totaling not more than 6 percent of the bid price.

#### (c) Hard-to-Sell Properties

- For sales of Properties designated as hard-to-sell, HUD will pay up to a total sales commission of $2,000, to be split between the listing broker and selling broker.

##### (2) Split of Sales Commission

- Listing brokers and selling brokers will split sales commissions. The selling broker’s acceptance of a lower commission does not affect the amount the listing broker will receive.

##### (3) Calculating Commission on Discounted Sales

- For discounted sales to buyers other than Governmental Entities or HUD-approved Nonprofits, the listing broker and selling broker may calculate commission based on the bid price before any discounts are deducted.

#### (B) Required Documentation

- The listing broker and selling broker must enter on form HUD-9548 the actual commissions to be paid.

### iv. Closing Costs

#### (A) Costs Automatically Paid by HUD

HUD will pay the following closing costs:

- Proration of property taxes and any special assessments such as Homeowners’ Association (HOA) fees and utility bills;
- Condominium or HOA transfer fee, if applicable;
- The cost to provide condominium documents to the buyer;
- The repair escrow inspection fee of $200, if applicable;
- Recording fees and charges for the deed;
- The overnight mailing fee for the final Closing Disclosure or similar legal document, signed by the buyers and the Closing Agent, and sent to the AM contractor; and
- State and local transfer taxes that are reasonable and customary in the jurisdiction where the Property is located.

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**Handbook 4000.1**  
**1687**  
**Last Revised: 01/10/2025**