Counter offers - Broker requires counter for Escrow and Title

I don't understand the meaning of "counter for service".

Give me a clue.  I understand the seller making counter-offers to a buyer for price, terms and conditions, but I don't know what a buyer would have offered that would be called "service".

Lenn

Or, maybe I just figured it out.  "Escrow and Title". 

Maryland gives the buyer the right to select the lender and title company.  We don't use escrow services.  The listing or selling broker hold escrow money.  I have seen escrow amounts countered and there is one broker in Maryland that wants to hold escrow money.  Fine.  Saves me a trip to the bank. 

I have also had buyer agents want to do settlement at locations totally inconvient to the seller.  But, the seller usually agrees. 

So, sure, I've seen all of these things countered, but it's still up to the buyer, by law.  Now agent Joe, whose wife is a lender and whose brother is a title attorney will try to steer the loan to the wife and the settlement to the brother.  Fine.  They better offer my buyer a fantastic loan rate and title fee.

Lenn

I have seen an offer rejected for that.  The Realtor should be facing a review panel for that.  Putting his interest ahead of the clients.

I also when buying a place in Arizona rejected a counter for less than $150.  I found a better deal during the time they gave me to decide.  The home was on the market for more than a year and they never did sell it.  Shame on them!

IS there any reason that this an not (a) be made with the first counter from the seller to the buyer or (b) rejected by the seller as unreasonable and never presented?  If it is only for the bene of the broker is would be the sellers right not to use, right?

I'm not clear on all of what Rich states, but Maryland law gives the buyer the right to select the title company and lender.  That all that's to it.

That said, real estate practice is a rather insestuous business and many listing try to direct loans and settlment to friends, relatives, spouses and their own brokers. 

I wouldn't entertain moving a loan, but I don't really care who does title work as long as the title company is convenient and they are going to give my buyer some incentive for using them.  For instance, give my buyer a free settlement meeting, saving about $550.  That way, my buyer saves money and the title ocmpany gets the title insurance commission.  That's where their money is anyway. 

BUT, everything must be disclosed to everyone.

Lenn 

 

I can see if you are paying you should be able to choose.

Here in Hawaii the settlement cost, what we call closing costs are split and spelled out in hard copy on the DROA.  The buyer picks the escrow in the offer and they split fees according to the prescribed breakdown.  The seller can counter to choose the escrow agent and office.  We both know that in most cases neither the seller nor the buyer cares.  It is the agent inserting themselves.  The one I find the most vulgar is that the big C/B franchise also owns an escrow and a mortgage company and their agents like to counter to use their company.

Aloha,

Mele Kalikimaka (Merry Christmas in Hawaiian)