Recently I've been asked quite a bit, who holds the option consideration since it's going to be used as a down payment. Some ask will it be in an escrow account. When I say no, sellers ask so you just hold that money and give it back at closing. They also assume that the part that I give them of my fee. They have to hold for the seller until closing. Another thing sellers say is: How can it be a down payment if it's your fee? Does that mean if the buyer pays 5,000 up front and you take 3,500 of it, only 1,500 can be applied towards purchase. I would like to know how to explain this better to the sellers. I was under the impression that the buyer pays 5k up front, I get 3,500 to go to the mall with (not really) and when it's time to get a mortgage it shows that the buyer made a 5k down payment and everything just works out perfectly. Is there something I'm missing?