Posted by Rich-CA on August 09, 2008 at 15:31:29:
It was not in the disclosures. It also appeared on the HUD-1. I would tell the person handling closing to remove the fee and if they balk, then ask them to show you where you agreed to such a fee in writing. That would make it easier to get the facts about the fee. If they can’t show you agreed to it, then you didn’t and you should refuse to pay it.
Commissions plus processing fees - Posted by Jack March
Posted by Jack March on August 08, 2008 at 12:45:14:
I am a Massachusetts REALTOR. recently, after working 4 months with a Florida broker, I made an offer on a piece of property. it was verbally accepted. When I received the 23 pages of offer, addenda and disclosures, on page 11 “addenda” it said “In addition to any brokerage fees noted in this contract, this agency will collect a $199 Processing/Compliance fee from it’s buyer and/or seller as agreed to in the Real Estate Sales Cost Disclosure Form” I initialed this page.
The said disclosure form listed, among other normal expenses, such fee of $199. At the bottom of such form it said “The undersigned acknowledgs the this instrument has been read and signed before any contract for sale and purchase of the real estate described above has been signed.”
I did read this page and signed it as such.
This fee is sprung upon both the buyer and the seller when the offer paper work is presented.
Is this fee legalor ethical, when commissions are also being paid?
I do not believe I have signed a contract for this fee, I only signed that I have read the disclosure.
Any comments?
Re: Commissions plus processing fees - Posted by River City
Posted by River City on August 09, 2008 at 17:08:06:
I found the same thing when I was listing a home in the Jacksonville, FL area. I thought it was odd since the sales commission was 6%. I asked the broker about it and they said it was a “corporate” thing (they were a large real estate company). So, I just went with another agent and this one did not have this in their contract.
common during boom - Posted by steve
Posted by steve on August 09, 2008 at 09:20:23:
suggest you tell either listing or selling agent that they need to eat this fee or will cancel deal. They usually give in. IMO it is just a pure profit center for the broker. Now if they are doing the deal for less than the normal full commission, may have an argument for collecting fee.
It is to bad that these usually end up being a charge to the buyer, because he did not pick the brokeage who has the property listed. I think it should be challenged and the broker called on the carpet regarding this JUNK fee. Everyone crys about junk fees from lenders and title people, but few question this TRUE JUNK fee.
Ambiguity is the issue - Posted by John Merchant
Posted by John Merchant on August 09, 2008 at 08:58:38:
To keep from being sucked into such an amorphous and ambiguous quasi-contract I think it’s best to just cross out such language before signing or initialing the doc.
This way there’s no question that the signer did NOT agree to such language or expense, nor did he agree to pay it.
What to do now?
I’d suggest you immediately email or fax that Broker (so you can put it in provable writing)and state, unequivocally, that you did not and do not intend to pay such add’l expense…so you get the issue on the table right now and can settle it before deal gets any more involved.
I had to pay something similar - Posted by Rich-CA
Posted by Rich-CA on August 08, 2008 at 22:41:25:
in Colorado. Everything is subject to agreement and you can decline to pay by refusing to sign the agreement.
Re: common during boom - Posted by Jack March
Posted by Jack March on August 09, 2008 at 10:40:09:
This broker charges both the buyer and seller the fee and it does not show up in the listing agreement. It is presented as a disclosure with the offer!
Re: I had to pay something similar - Posted by Jack March
Posted by Jack March on August 09, 2008 at 06:50:01:
Yeah, but I initialed all the pages and signed the disclosure stating I had “read” such disclosure. I do not believe I have contracted to pay the fee