Choose one base
The rider may state a percentage of the Purchase Price or a fixed dollar amount to be credited at Closing.
Paragraph 19 · Addendum FF
A seller credit can help satisfy the buyer’s broker obligation—but only within two important limits.
Addendum FF allows the seller to credit the buyer at Closing toward compensation the buyer owes under a separate buyer-broker agreement.
What Addendum FF does
It turns part of the negotiated purchase price into a closing credit for buyer-broker compensation.
The buyer has a separate agreement with the identified buyer brokerage. Addendum FF documents the seller’s agreement to give the buyer a credit that may cover some or all of the compensation the buyer owes that brokerage.
The rider belongs to the purchase contract between buyer and seller. It does not replace, incorporate or rewrite the separate buyer-broker agreement.
Three credit formulas
Percentage, fixed amount—or both.
The selected formula determines the negotiated credit before lender and buyer-broker-agreement limits are applied.
% + $Complete one credit calculation option
Percentage plus dollars
The parties may instead negotiate a percentage of the Purchase Price plus an additional fixed dollar amount.
Six rider mechanics
The credit must fit the purchase contract, loan and brokerage agreement.
Separate agreement exists
Buyer has a buyer-broker agreement with the brokerage named in Addendum FF.
Brokerage identified
The rider names the Buyer Broker whose compensation obligation the credit addresses.
Credit is selected
The parties choose a percentage, fixed dollar amount or combined formula.
Lender limit is tested
The loan program determines how much seller contribution may be treated as a buyer credit.
Agreement limit is tested
The credit cannot exceed the amount permitted under the buyer-broker agreement, as amended.
Closing statement reflects it
The allowed credit and any permitted direct payment are documented through Closing.
The first ceiling · lender allowance
A negotiated credit can still exceed what underwriting permits.
Mortgage programs limit seller contributions based on factors such as loan type, occupancy, down payment and permitted use. Addendum FF cannot override the lender’s underwriting or closing-disclosure rules.
If the negotiated buyer credit exceeds the lender’s maximum, the rider provides options for handling the balance—to the extent the lender permits.
Confirm the credit structure with the lender before the offer is finalized, then reconfirm after the purchase price and loan terms change.
When the credit exceeds the lender limit
The parties choose direct payment or reduction—with a default if neither box is checked.
To the extent permitted by the lender, the excess may be paid directly by the seller to the Buyer Broker. Alternatively, the buyer credit may be reduced to the lender’s maximum allowed amount.
If neither excess-credit box is selected, the rider defaults to direct payment of the balance by seller to Buyer Broker, again only to the extent the lender permits.
1
Calculate the credit
Apply the selected percentage, dollar or combined formula.
2
Compare lender limit
Determine how much may appear as a buyer credit.
3
Apply selected result
Use permitted direct payment or reduce the credit to the maximum.
4
If left blank
Permitted direct payment to Buyer Broker is the rider’s default.
The second ceiling · buyer-broker agreement
The credit cannot create compensation the buyer never agreed to owe.
Even if the lender allows the seller contribution, the amount remains limited by the separate buyer-broker agreement.
Starting amount
The purchase contract establishes the seller’s proposed credit through the selected formula.
Compensation ceiling
If the FF credit is higher than the amount permitted by that agreement, the credit is adjusted downward.
Current terms control
The rider recognizes that the buyer-broker agreement may be amended, but FF itself does not amend it.
FF versus GG
FF supplies a credit. GG supplies a compensation-agreement contingency.
Both address buyer-broker compensation, but they use different parties, documents and contract mechanics.
Buyer–seller credit
Seller agrees within the purchase contract to credit buyer toward the buyer’s separate brokerage compensation obligation. FF is not itself a cancellation contingency.
Separate agreement contingency
The purchase contract becomes contingent on seller or seller’s broker entering a separate compensation agreement with Buyer Broker on terms acceptable to buyer.
Four-party coordination
Buyer, seller, brokerage and lender must describe the same closing structure.
Buyer and Buyer Broker
- Confirm the current buyer-broker compensation obligation.
- Identify the correct brokerage legal name.
- Select the FF formula accurately.
- Verify whether other compensation agreements exist.
- Give the rider to the lender immediately.
- Do not assume every negotiated dollar is usable.
- Document any buyer-broker agreement amendment separately.
- Review the final closing statement before signing.
Seller and closing team
- Understand that FF is a seller credit to buyer.
- Confirm the exact maximum seller contribution.
- Select how lender-disallowed excess will be handled.
- Recognize the default if no option is checked.
- Coordinate any direct payment with lender and Closing Agent.
- Do not request the private agreement unless independently authorized.
- Avoid treating FF as a broker-to-broker agreement.
- Verify all amounts on the settlement documents.
A practical closing path
Two ceilings determine the usable result.
Buyer owes compensation
A separate buyer-broker agreement establishes the buyer’s obligation.
Seller credit negotiated
Addendum FF states the percentage, dollar amount or combined formula.
Lender ceiling applied
Excess is handled by the selected option or the rider’s default, if permitted.
Agreement ceiling applied
The final amount cannot exceed compensation permitted by the buyer-broker agreement.
Frequently asked questions
Florida Addendum FF, in plain English.
Is Addendum FF a compensation agreement?
No. FF is a purchase-contract credit between buyer and seller. The buyer-broker agreement and any other compensation agreements remain separate.
How can the FF credit be calculated?
The parties may select a percentage of Purchase Price, a fixed dollar amount, or a percentage plus a fixed dollar amount.
What if the seller credit exceeds the lender’s limit?
To the extent the lender permits, the excess may be paid directly by seller to Buyer Broker, or the credit may be reduced to the lender’s maximum.
What happens if neither excess-credit option is checked?
The rider defaults to seller paying the balance directly to Buyer Broker, but only to the extent permitted by the lender.
Can the credit exceed the buyer-broker agreement?
No. If it exceeds the amount permitted under that agreement, as amended, the credit is adjusted to the allowed amount.
Does FF amend the buyer-broker agreement?
No. The rider expressly states that it does not modify the buyer-broker agreement or other compensation agreements.
Must buyer give the seller a copy of the buyer-broker agreement?
No. Nothing in FF requires buyer or Buyer Broker to provide a copy to seller or Seller’s Broker.
Is broker compensation fixed by law?
No. The rider states that broker commissions are not fixed by law and are fully negotiable.
Negotiating a buyer-broker credit?
The right formula only works when the lender and brokerage agreements support it.
DW&Co. can help coordinate the contract rider, lender review, brokerage documents and closing-statement treatment with the appropriate Florida lending, title and legal professionals.
Talk with DW&Co. Real Estate