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Court Case Could Effect Short Sale Specialists
Recently a court case ruling about Administrative Fees (Busby v. JRHBW Realty, Inc, d/b/a RealtySouth) made me think, "Good for them!" I've never been a proponent of Admin Fees. They are junk fees after all. However, as a short sale specialist, I had to think about this a bit more.
In this case, the plaintiff won a class action law suit against RealtySouth for charging Admin Fees that were legally proven not to have done anything to help in the transaction. Short Sales can feel like the wild west and now some of the extra ways of collecting a full commission are in jeopardy.
Let's look at Section 8 of Respa (since it was used in this court case)
"No person shall give & no person shall accept any portion, split or percentage of any charge made or received fro the rendering of a real estate settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed."
While RESPA allows for fees to be paid with cooperative brokers, the plaintiffs in the above case argued that the admin fee charged was not for services actually performed. This got me to thinking about Short ... more
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