Seller Compensation Addendum

08 · What this form is

An addendum that records an agreed compensation arrangement

The Seller Compensation Addendum is an addendum used in an Arizona residential transaction to record, when the parties agree, the terms under which a seller may compensate the broker who represents the buyer. It documents a payment arrangement that the parties choose, when they choose it.

09 · When it commonly arises

When the parties agree to seller-paid buyer-broker compensation

This addendum commonly arises when a seller and a buyer agree to seller-paid buyer-broker compensation as part of the transaction. It is used to put that agreement in writing.

10 · General subjects it covers

Compensation between the parties, at a high level

At a high level, the addendum records the parties' agreement about any seller payment of buyer-broker compensation. Such compensation is not set by law and is negotiable between the parties; nothing on this page should be read as implying a payment is required or automatic. This form is about compensation between the parties, which is separate from representation. The specific terms are set in the document itself.

11 · Questions to discuss with Andrew

The points worth understanding before you sign

• How buyer-broker compensation is being handled in this transaction, and who is arranging it.

• What the addendum means for your net as a seller, so the numbers are clear before you sign.

• How compensation relates to representation, since the two are separate and should not be confused.

12 · Next steps

Review the terms, then confirm understanding

• Review the addendum carefully with Andrew before signing.

• Confirm the parties understand the compensation terms before the document is signed.

• Ask anything that is unclear about the payment arrangement before you commit.