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.
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.
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
#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 didnâ€™t have to pay the realtor, they could drop the price another 6%, so whoâ€™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)
US Dept. of Justice Consumer Alert: Consumers Can Save Thousands of Dollars in Commissions
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.
I sell plenty of homes in Lighthouse Point
Former Mortgage Broker for 8 years
Current Realtor for 9 years
Capitol Homes Real Estate Inc
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.