Home Buying in 33064>Question Details

Jim Walsh, Home Buyer in Fort Lauderdale, FL

Closing on a home in Lighthouse Point. Via an initial HUD statement learned of a 790.00 commission charged to me the buyer.

Asked by Jim Walsh, Fort Lauderdale, FL Tue Mar 5, 2013

A. This seems high..yes? B. while I pushed back the broker made it sound like this was critical compensation. Thoughts?

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Answers

11
You really need the opinion of an Attorney. Our office at KW has an Attorney that is always available to look at documents and give a quick, honest, and reliable opinion....
0 votes Thank Flag Link Tue Nov 5, 2013
Hi Jim,

Yes, Danielle is right. I should not have said "All" brokers, I should have said "most" or "typically", and this is America where you can negotiate any arrangement you want as long as it's legal. As to whether these fees are necessary, I am not qualified to say. I'll give you the typical lawyer answer - "It depends." Have a great weekend and contact me at http://www.debwolf.keyes.com, if you have any further questions.
0 votes Thank Flag Link Fri Aug 23, 2013
All brokers do not charge these fees. And aside from the normal licensing charges everyone pays the state of Florida does not charge brokers anything special. The cost of doing business is the cost of doing business which is not the problem of the consumer. All transaction fees/administrative fees/"storage" fees are flat out extra charges that really aren't necessary in my opinion.
0 votes Thank Flag Link Fri Aug 23, 2013
Hi Jim, I just found your question and wanted to answer, even though a little late. It sounds like this is a Broker's Fee (a fee charged to cover administrative expenses and costs that the State of Florida charges brokers), rather than a commission (which would be based upon a percentage of the sales price of the property). If this is a broker's fee, then all broker's charge this fee. Sometimes it is more obvious in the contract than others, but it will always be more obvious on the HUD statement way after you signed the contract. This fee varies for all brokers. Your fee seems high to me, since the Keyes Company-s standard broker fee is $349 per transaction. I believe this is somewhat dependent upon the type of entity you are dealing with. Most real estate offices are franchises, and have to absorb their costs pretty much on their own, rather than company-owned offices, such as here at Keyes, whose costs are spread across the entire company. To see more and search 33064 go to http://www.debwolf.keyes.com. I hope this helps you in the future.
0 votes Thank Flag Link Fri Aug 23, 2013
In my book this should never happen; Period.

The fee is more than likely a "Broker Commission" paid to the broker....
It is another way to add more profit to the bottom line.

I am not happy about this charge - but I am not the Broker setting the rules...

Because I know this can turn a good relationship; bad
I make sure this is covered in my initial conversation when reviewing the "listing' or "selling" documents. Making very clear this is not "MY" charge or "MY" fee - This is a fee charged by the broker.

In my Brokerage - this fee is not shared with the Agent... While the fee is roughly 1/2 of the above listed fee... I still feel this is an additional "hidden" profit center and another way to "bilk" more money.

There are ways to get around this fee.
Web Reference: http://www.garyyoungman.com
0 votes Thank Flag Link Sat Aug 10, 2013
This "Comission" charge is usually or Should usually be disclosed to you prior to signing the initial offer with your buyers agent.
0 votes Thank Flag Link Tue Mar 12, 2013
First you should ask the title company what that fee is for. Then you need to look through all of the documents that you signed, including any disclosures signed prior to your signing the actual contract and see if this fee was disclosed to you. It must have been disclosed, but you may not have been aware.

Then finally, ask your agent where it was disclosed and where you signed agreeing to pay it. Fees should not be charged to you without first disclosing them, and must be acknowledged.

Best of luck,
Stefanie Cohen, PA, ABR, SFR
Prudential Florida Realty
0 votes Thank Flag Link Wed Mar 6, 2013
Stephanie-

Thanks so much! The wording in the contract says: In addition to the broker fee described in section 8 ( standard commission dialog) agency will collect at closing a brokergae fee from it's Buyer and/or seller in the amount of $790.00 as agreed to in the buyers /Tenants real property disclosure.

While I did sign that disclosure the wording again says Buyer and/or Seller naturally I thought that was being paid for as part of the commission that the seller pays as normal. Because of the vague nature of the wording " Buyers and/or Seller" it's confusing. Add to that the actual amount of $790 and it's listed on the Hud state ment as "commission" seems shady!
Flag Wed Mar 6, 2013
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#1 look at the top of the HUD, do you see that 6% of your equity given away in realtor commission?

Oh no, the seller pays the real estate commission. Yeah, right! Guess what, that is your FORFEITED EQUITY! If the seller didn’t have to pay the realtor, they could drop the price another 6%, so who’s really paying it? Then to have the nerve to try and slide in another $790.00??

Funny how consumers will lay down and needlessly give away so much of their home equity in realtor commission, but then will shop relentlessly for months, chasing every pop up carrot online and fight and scream to save an .125% on an interest rate on a loan they won't even have for 60 months or a few bucks in loan processing fees.

You want to see how effortless it was to have saved thousands in TAX FREE home equity?

Florida Realtor Rebates: click here to view Google search (2,400,000 plus results)
http://www.google.com/#hl=en&tbo=d&sclient=psy-ab&am…

US Dept. of Justice Consumer Alert: Consumers Can Save Thousands of Dollars in Commissions
http://www.justice.gov/atr/public/real_estate/florida.html
http://www.justice.gov/atr/public/real_estate/commission-tab…

The Florida Real Estate Commission(FREC) Rule 61J2-10.028 (2) provides that a licensee may share brokerage compensation with a party to a transaction as long as full disclosure is given to all interested parties.

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0 votes Thank Flag Link Wed Mar 6, 2013
Did you close already? This is an excessive fee. These fees have only been around the last 5-10 years and in my opinion are wrong unless the property was not paying your agent / broker a standard fee of 2.5%-3.0%. Generally speaking, most companies charge around $300 but your agent/broker must have disclosed this fee and you should have signed on it, BEFORE it showed up on the HUD. I would fight tooth and nail to have it removed or just tell them your not closing, they will remove it.

I sell plenty of homes in Lighthouse Point
Former Mortgage Broker for 8 years
Current Realtor for 9 years

Nick Somerville
Capitol Homes Real Estate Inc
561-866-6933
0 votes Thank Flag Link Tue Mar 5, 2013
Thanks Nick - We are not closed and yes 3% of the sales price (Around $14,000) is being paid to the broker/Agent from the Seller. Agent claims he has to split with Brokerage but I feel that even that at $7K seems resonable compensation for the 4 or 5 days we worked thus far with my agent. These fees certainly don't make me feel good about suggesting this brokerage to future buyers. PS- I did what you said and you know what - They removed the fee!-thanks!
Flag Wed Mar 6, 2013
If it is your agent's broker charging the fee, then it makes a bit more sense. They are required by law to maintain records and storage gets expensive. In addition to that, they have overhead, office employees, taxes and other normal business expenses that other professions charge an hourly basis for.

If it is the listing agent trying to charge the buyer, that is unethical even if it is legal. They are already being compensated by their client and just being greedy trying to get money from the buyer as well.

As mentioned, regardless of who is charging the transaction fee, it must be disclosed in writing as part of the contract process. You may want to speak to a real estate attorney, especially if this fee was not disclosed prior to you seeing it on the HUD-1.
0 votes Thank Flag Link Tue Mar 5, 2013
Thanks for the info. I spoke with the broker today who told methe agent gets $500 and the Broker $290 (if that is true). It just appears to be a junk fee to me. I mean they are getting over 13k in commissions.
Flag Tue Mar 5, 2013
Look through all of your documents. All fees must be disclosed at time of writing an offer, in writing & signed.
0 votes Thank Flag Link Tue Mar 5, 2013
Thanks! It is in the contract and so vaguely worded that even the sellers agent made them write in the term that the seller would not pay it. Everywhere it says "seller/buyer is responsible" but nowhere does it say seller pays x and buyer pays z. Seems intentionally vague
Flag Tue Mar 5, 2013
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