Is it legally justified to charge a transaction fee????

By
Real Estate Broker/Owner with Realty Empire Incorporated

Let's see I propose a question to all realtors who are working with buyers of a foreclosed property or short sale property and those realtors selling these properties.

Is it a justified fee, to charge the Buyer the Seller's transaction fee because the banks don't pay it?

This question has recently become the subject of class action lawsuit in federal court.  (Busby vs. Realty South April l 09)  The court ruled in favor of the buyer (Busby) this decision appears to support a position taken by HUD that section 8(b) of RESPA.

Under RESPA it is prohibited to charge a fee to a consumer where the provider furnishes a service that is nominal or duplicative.

If a broker charges a separate fee other than the permitted commission fee charged to the customer then broker must disclose such fee and the fee must be in exchange for real estate services provided. The fee cannot be nominal or duplicative of any other service that the broker is providing.

As for a listing broker, who has no relationship with the buyer, requires the buyer to pay a transaction fee, it would be an unearned fee under RESPA as the buyer would not obtain any benefit from the services provided by the listing broker.

Now, I want to know how this is happening?

 If you are working with a Buyer who does not want to pay the transaction fee for the Seller then you are is a predicament, you might as well just forget about making an offer because the Sellers agent is not going to work with your offer.  If, neither the buyer nor the seller pays the fee for the listing broker then the seller's agent is responsible to pay this fee from their commission check to his/her broker.

Source: Florida Realtor

Posted by

 

Stephanie Leon

Real Estate Broker
Realty Empire

6625 Miami Lakes Dr.
Miami Lakes, FL 33014

Contact me at:
786-664-7710
SLeon@RealtyEmpire.net

 

 

                        

  

 

All Rights Reserved. Copyright 2010-2018 Stephanie Leon Realty Empire 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Tags:
buyers agent
respa
sellers agent
broker fees
allowed fees

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
782,788
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Very good blog!  Thank you for taking the time to write it and share it!

May 04, 2010 05:06 PM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
127,362

Stephanie Leon | Miami Lakes Realtor®

Turning For Sale Into SOLD!
Ask me a question
*
*
*
*
Spam prevention

Additional Information