I did not pay the fee direct to the realtor but via the title closing company who then paid the realtor. The fee is a Schedule C business expense that I deducted in my real estate business.
THe answer to your base question is no. You aren't reporting anything paid to the agent. You paid everything to the title company. What they did with that money isn't your concern. If required, the title company will issue any required tax reporting documents to the agent.