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Oh No You Don't, My Buyer is not Paying!

Oh No You Don't, My Buyer is not Paying!

Here in South Florida we have more than our fair share of "Foreclosures" and "Short Sales". We have such an abundance that our MLS System recently had to setup a Field where you have to answer either a Yes or No.

Since the Banks are paying the Real Estate Commission, they often times pay only a reduced percentage of 5.0% instead of the normal 6.0%, so already I am unhappy.

The Bank will also not pay the "Transaction Fee" and I am seeing more and more Property Listings where it states that the Buyer has to pay the Listing Broker's "Transaction Fee" when purchasing this property.

When speaking with my Broker, he told me that this is a Violation of MLS Rules and they cannot force my Buyer to pay!

It is hard enough to get my Buyers to pay my "Transaction Fee" let alone have them pay both sides! So I am waiting for Acceptance by the Bank of my Contract of which I will be then be breaking the news to the Listing Agent, that~ On No You Don't, My Buyer is not Paying your Transaction Fee!

Posted by Kathy Hyatt on 08/06/2008 10:32 AM

Comments (17)

oh no you dont, my buyer is not paying

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17 Comments on Oh No You Don't, My Buyer is not Paying!

AUG

2008

Thanks for informing us!

Yep, make the listing agent pay for it. That's what I would do.

Amen we have the same problem in Miami, Different stories with different banks also. Getting crazier everyday.

listing agent should pay. I have done more short sales lately too, and I do it to help the client, but it sure hurts sometimes when at the closing I am being asked to "kick in" an additional few hundred here or there because neither the seller, the bank, nor the buyer are willing to cover a shortfall. In the end, I usually do it, because I don't want to see my client lose the transaction and have to go to foreclosure

It is sad but it seems that banks are not immune to trying to take advantage of the agent as well as the borrower. I am disappointed at how many banks offer so little to the agents, and it is up to the agents to fight this mind set.

When in doubt, call someone in charge and write down the answer and the name of the person that gave it to you.

Pardon me being from Califorinia but what is a "Transaction Fee"

In all honesty it is a "Junk Fee". The Broker is required to hold the file for a certain amount of time and because of that a charge can be passed along to the Client.

Kathy, It is amazing that transaction fees are common place in many parts of the country but on the west coast I see them rarely. As you referred to it above as a junk fee I often go through the HUD at closing to make sure my clients are junk fee free...

I work for two different brokerages in two different states. Neither one charges a transaction fee to the client. The transaction fee the listing agent charges is supposed to be for services to the benefit of their client, which would be the bank. The listing agent should pay it out of their side of the commission. It is just pure profit to the broker.

Thanks for the comment Paul. Here on the East Coast this is the "Norm" and has been in effect for quite a few years now. I know that the Banks are taking a beating out there but it is not a reason that us Realtors need to take a beating too!

Its all negotiable. Many times the seller (Bank) tries to force a Title Co upon the buyer. I simply write in the contract that the buyer will select their own Title Co. Only the contract can "force" your buyer to pay it.

I went to a brokerage with no Transaction fee, to one that charges one. As part of my IC agreement, I will try to collect the transaction fee from the Bank or Investor on the property. If an issue is raised I will waive the fee (I'm not paying a junk fee from my commission). Buyers and Sellers in the REO/Investment area generally will not pay transaction fees.

That's just crazy. We don't have an over-abundance of foreclosures/short-sales here, so I haven't really noticed this being an issue. But I will keep my eyes open for it in the future.

AUG

2008

This is information everyone needs to know. I am glad you took the extra step to find out and by doing so you saved your Buyer money.

This is a Great Wake-Up call for all Sellers with overpriced homes that are still "Living the Dream". Love the Post!

AUG

2008

Ahhh...you're getting that also. We have about 4 agencies here that list most of the REO's. They add into the body of the listing that buyer is responsible to pay either a certain dollar amount or a percentage of the purchase price. I've been wondering what happens if you write up the contract and don't mention it at all. What if the agent won't present it because it's not addressed in the contract and they insist it be added?

AUG

2008

It was not until I read your blog and verified that this is true, It is a violation. Thanks for letting us know, you just saved my Buyer monies that he can use on other things for his Home now. Thanks for the Post!

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