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Real Estate (Possible) Scam III: Statutory Compliance Fee

By
Real Estate Agent with Exit Realty Properties

The Statutory compliance fee is what we charge at closing to store the documents of our clients/customers for a minimum of 5 years according to regulation. Before I go into the details of this "scam", please tell me who pays this fee?  Answer A, B, or C.

A. The buyer to the buyers agent?

B. The seller to the seller's agent?

C. The buyer to the seller's agent?

Your answer to this question ill help shed a lot of light on this question, I promise. Your answer may result in losing a customer or walking away from a property!!

Afie

Peter Larson
Granite Bridge Homes - San Diego, CA
I am in CA and I have never heard of a "Statutory Compliance Fee." Is this for real? We store the files for the time period tha tthe state mandates without a fee. What is the answer in FL?
Nov 20, 2007 11:07 AM
Matt Kofsky
Transaction Realty 500 Reno, Nv. - Reno, NV

D. None of the above.  There should be no charge.

Nov 20, 2007 11:07 AM
Dan Gobis
Re/Max Newport Realty Corp. - Racine, WI
In Wisconsin a Brokerage Firm is required by State Statute to maintain transaction records. A "Statutory Compliance Fee sounds along the same scam thought process as the "Administrative Fee" that some Brokers charge.
Nov 20, 2007 11:15 AM
Afie Makinde
Exit Realty Properties - Coral Springs, FL
Realtor, Broward County, FL

Hmm, this is news to me but an eye opener as well because these are charges in Florida. In fact, it is part of a sales and purchase contract.

 Afie

Nov 20, 2007 11:40 AM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy
I would guess C, because it sounds like something that a REO specialist would come up with.  Just like with the "Admin Fee" that car dealers want to charge, it sounds like crap to me. 
Nov 20, 2007 11:41 AM