I recently read a blog about transaction or admin fees charged to the buyer and/or seller at closing.
I am wondering if anyone has experienced this: a transaction or admin fee charged to the buyer UNLESS the buyer uses the broker's title company. Of course, the broker is affiated with the company.
First off... NO... second, I think that admin fee should be absorbed by either the seller or the Realtor, as this is the cost of doing business. I pay for an admin fee on every transaction I do, it is what our office charges to have our files audited.
this has caused more bad feelings from both buyers and sellers than anything else in the transaction. The good news is that I have picked up more customers in the long run from other companies that charge these fees sice their clients feel ripped off. the banker and Realtors combination does not foster a loving relationship in the long run, it is just another fee that is a surprise at the closing table.
It's all about the money Honey,,,,some brokers have an admin fee that they claim is so they don't have to add another half per cent to the listing.....you will usually find these "attached" to brokers that own title company's while other brokers may have another name for it....same stuff different money.
Yessiree, I know of it. In some cases it is a built-in part of the Broker's Listing Contract or Buyer's Agent Agreement. In most cases, if the Seller or Buyer refuses to pay the $195 (or whatever), the agent is responsible for the fee to the broker, and it is taken out of their commission.
Brokers also keep track what agents are charging the required administrative fee.
I don't agree with this fee.
I had heard that some of these fees were being waived by the broker, but ONLY if the buyer agrees to use the broker's title company. I'd hate to think that was happening, but ya know...
There was a lawsuit about this recently with not qualify the administrative fee to the buyer. Let me put it to you this way:
Do you pay for anything that doesn't have something attached to it declaring its' value?
Would you pay for anything that you didn't know what you were going to receive in return?
I didn't know this existed until I read the case.
I absorb any admin fees that our company charges. I don't think they are right especially on the sellers side. Waving fees based on the usage of a title company or lender smells fishy to me!
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