Some brokers charge a transaction fee to increase their bottom line. This practice has been found to be in violation of RESPA in Ga. courts. Here is a link to the warning that was given in Ohio by the OAR.
http://www.ohiorealtors.org/absolutenm/templates/article.asp…

Janet ....Hi!
I don't know what is customary and usual in Ohio, but as long as your agent was upfront in informing you about this fee, there is nothing illegal about it. If you are troubled by it, then perhaps you might want to ask around to see if other agencies charge a similar fee.

In my area, we don't charge any extra fees to our clients, nor, as an agent, do I pay any such fee. Our compensation, the commission, is all we expect..I don't know of any companies here charging a fee like this either. The only additional cost I pay is a franchise fee, but that is an internal issue.

From what I have read here, though, it seems that this practice is done in some areas. I don't quite understand a transaction/administractive fee for doing what you are already being paid to do. Records do need to be kept (on both sides of the transaction), but storing a file in a cabinet doesn't seem to warrant that kind of charge.
As we can see from the various responses, business is conducted in many ways throughout the country!

best wishes to you.....
Debbie

In response to Tim's answer

"Sounds awfully fishy to me. This is not a standard fee I've ever heard of. If they didn't disclose this to you up front, I would refuse to pay it. If they insist, report them to the local Realtor Association."

What is fishy about an agent telling a client right up front that they will pay a fee??? Trying to sneak it in on the HUD, that would be fishy... As for turning them in to the board? For what??? Telling them something up front that they may not like? What if they don't want to pay the commission? Should she turn them in for that too???

What does it seem that EVERYTHING is always illegal or against the "rules" just because it is not the way some other agent does it??? I hate the back stabbing and underhanded "questioning" that agents do to make themselves look better...

Janet, I would respect your agent for being honest and telling you the fee up front. No, not just the listing agent has to keep the records. Both brokerages must keep all records of the transaction so it does not matter that you are the buyer. Best of luck to you!

our brokerage charges an administrative fee too of $295 to both buyers and sellers. If we don't collect, we pay.

Yes, my firm charges me $176 per side on each transaction, but I would never think of passing it on to the client. I consider it a cost of doing business and handle it in my taxes, as appropriate.

--Tim

Hello Janet, this sounds like an administrative fee the buyers brokers is charging for "record keeping". This is typical for many large (and sometimes smaller) franchise companies.

Here in CT Prudential charges the same fee to both sides of the transaction. Although I personally feel it's just nickle and diming the consumer, many agents pass this fee on to you. If they didn't, their broker would generally take it out of their commission.

Hope that help!

Sounds awfully fishy to me. This is not a standard fee I've ever heard of. If they didn't disclose this to you up front, I would refuse to pay it. If they insist, report them to the local Realtor Association.

I'm sorry to hear you're having a bad experience with an agent.

-Tim

They are our buyer agent. They said it's a fee that goes to them to keep our records for 7 years. But everyone I've talked with said they didn't have to pay this and also pointed out that usually the seller's agent is the one that keeps all the paperwork as do the bank...

Janet,unclear on fee,You mean an admen.fee to broker most comp. have one,just different amt.is normal.I havent heard of other?

TJ

Any fees that a broker charges to a buyer or seller must be disclosed up front before signing a purchase or listing agreement to sell real estate. From what you have described, it sounds to me that what they are charging you is some type of administrative fee. It's just a cost of doing business! The agent that is representing you as a buyer's agent most likely is being compensated by the seller and the administrative fee most likely goes to the broker to cover their expenses. I really doubt in this digital world that it would cost $250 to store your documents, however, in many areas this is customary. Be sure to ask your buyer's agent or listing agent what fees they will be charged and how they will be compensated for their service before entering in a relationship with them or before previewing any homes with them. Not all brokers will charge this fee, so be sure to ask!

Hi Janet,
I'd consult with an attorney about this. This sounds like, as the buyer agent, they're actually trying to get you to sign a retainer fee as well as the agent getting the other half of the seller's commission. This is not normal practice, at least here in my state of Massachusetts.
Good luck!
-Tim