How to Fill Out GAR Form F255: Compensation, Referral Fees, and Signatures

To fill out GAR Form F255, work through its six numbered sections by checking only the boxes that match the compensation the parties actually negotiated, entering each amount as a percentage, flat dollar figure, or other agreed formula, adding anything unusual in the special stipulations area, and getting the correct signatures from the brokerage firms and, where applicable, the buyer and seller. The form directs the closing attorney on how to pay broker compensation at closing, so unchecked boxes simply do not apply.¹

What F255 Does

F255, the Instructions to Closing Attorney, tells the attorney handling a Georgia real estate closing exactly how to disburse broker compensation: who owes what, to which brokerage, and whether the money comes from the seller, the buyer, or out of another broker’s commission. The attorney then shows those amounts on the settlement statement and collects them at closing.²

Because the GAR Purchase and Sale Agreement no longer contains the seller’s broker compensation inside the contract itself, F255 is now required at every closing that uses GAR contracts. The recommended practice is to prepare and sign it as soon as the purchase contract becomes binding rather than waiting for the closing week.¹

Sections 1 Through 4: The Compensation Terms

The first four sections cover the four possible compensation arrangements. Each is a separate checkbox section with a space to enter the amount as a percentage of the purchase price, a flat dollar figure, or another agreed-upon method. Only checked boxes become part of the agreement.²

Section 1 — Seller pays seller’s broker. The commission the seller owes the listing broker. Check the box, enter the percentage, dollar amount, or formula.
Section 2 — Seller’s broker shares with buyer’s broker. A portion of what the listing broker receives under Section 1 that is then paid to the buyer’s broker. This amount comes out of Section 1, not on top of it.
Section 3 — Seller pays buyer’s broker directly. A separate payment from the seller to the buyer’s broker that is independent of the listing broker’s commission.
Section 4 — Buyer pays buyer’s broker. The compensation the buyer owes their own agent, used when the buyer has agreed to pay their broker directly.

Not every section applies in every deal. A traditional arrangement might use only Sections 1 and 2, with the seller paying the listing broker who then shares a portion with the buyer’s agent. Another transaction might skip Section 2 and use Section 3 or Section 4 instead. Fill in only the sections that match what the parties negotiated, and leave the others blank with the box unchecked.

Section 5: Standard Terms You’re Agreeing To

Section 5 contains general provisions that apply automatically. You don’t fill anything in here, but you should understand what the signatures bind the parties to:

Neither broker can claim compensation from the other broker if the transaction does not close.
Signing F255 does not waive either broker’s right to dispute the amount or entitlement of any commission after closing, including through arbitration.
The closing attorney is directed to show the compensation on the settlement statement and collect it as a precondition to closing, as long as the buyer’s lender permits it.

Arbitration language was added back into the 2025 version of the form, giving brokers a contractual pathway to resolve post-closing commission disputes without going to court.¹

Section 6: Referral Fees and Rebates

Section 6 directs the closing attorney to disclose referral fees or rebates on the settlement statement. Section 6A applies to referral fees or rebates paid by the seller’s broker, and Section 6B applies to those paid by the buyer’s broker. These are checkbox items too, so they only take effect when the box is marked.² If a referral fee or rebate is in play, check the applicable box and enter the required details.

Special Stipulations

The special stipulations area at the bottom of the form is where you add anything the numbered sections don’t cover. If a special stipulation conflicts with Sections 1 through 6, the stipulation controls. Unusual arrangements belong here: a bonus tied to closing by a certain date, a split that changes depending on which lender the buyer uses, or any other term the parties worked out that doesn’t fit the standard checkboxes.

Who Signs

F255 has signature lines for the buyer’s brokerage firm, the seller’s brokerage firm, the buyer, and the seller. Who actually signs depends on which sections are in use:¹

Both brokerage firms sign every time.
The buyer signs if Section 4 is used (buyer paying any part of their broker’s compensation).
The seller signs if Section 3 is used (seller paying the buyer’s broker directly).
Neither buyer nor seller needs to sign when the compensation runs only through Sections 1 and 2.

Ink signatures and electronic signatures through standard e-sign platforms both work.

When to Get It Signed

Prepare and circulate F255 as soon as the purchase contract becomes binding. If there is any disagreement about the compensation terms, finding out early leaves time to work it out. Waiting until the week of closing can delay or derail the transaction over something that should have been handled weeks earlier.¹

One boundary worth noting: F255 covers broker compensation only. Other closing costs, title work, deed preparation, and tax disclosures move through the settlement statement and the closing attorney’s separate process, not through this form. If a buyer or seller is being asked to sign F255, the only terms they are agreeing to are the compensation terms and the general provisions in Section 5. Ask your agent to walk you through each checked box and amount before you sign so you know exactly what the closing attorney will be instructed to pay.

1
Campbell and Brannon. 2025 GAR Changes
2
Real Estate Academy of America. Instructions to Closing Attorney F255