[olecapt]

Originally Posted by WestieJeff

The broker (your agent's boss) is the one charging the fee and most likely they are requiring it on all deals that go through that broker.

You need to talk to your agent about this fee right away if it is a problem, don't wait until the last minute and try to complain about the fee, that would look pretty unprofessional.

You can propose an addendum at any time removing or changing the fee, it doesn't affect the seller, so they shouldn't care. If it was me, I would discuss it with your agent and if you decide on a different amount then note it, but don't do anything contractually until you get lender approval and are in escrow. The fee your being charged is really more of escrow instructions since it is between you and your agent. After you are in escrow and have lender approval then have your agent contact the escrow co to adjust the escrow instructions per whatever you guys agree upon.

I would think it is in all the main line brokerages...may not be in the local rent a desk operations.

$595 sounds like the agent is playing. Pru Am where we are charges $350 which is a bit much. But it is possible for the agent to revise the fee upward and some do...I don't care for the fee so I am not going to up it.

It is pure junk. Started out at $50 which may have had some limited justification but has since become an important source of revenue to the brokerages. They get reasoably small cuts from most of the more successful agents so that may be the only per sale revenue they get. Even for a modestly successful agent it is probably the biggest revenue source per sale for the brokerage.

Note that the fee is still of questionable legality...it has been found a violation of some of the lending laws in at least one circuit court of appeals. Not fully resolved though. If it decides badly I think it may well bankrupt some of the brokerages.

I collect it most of the time. Waive it on big sales but push for it on small ones. It is seldom an issue nowadays...used to be...but not lately.

[calgalt]

Coldwell and I think it was $375

[bledsoe3]

$350

[tony soprano]

Originally Posted by WestieJeff

The broker (your agent's boss) is the one charging the fee and most likely they are requiring it on all deals that go through that broker.

You need to talk to your agent about this fee right away if it is a problem, don't wait until the last minute and try to complain about the fee, that would look pretty unprofessional.

You can propose an addendum at any time removing or changing the fee, it doesn't affect the seller, so they shouldn't care. If it was me, I would discuss it with your agent and if you decide on a different amount then note it, but don't do anything contractually until you get lender approval and are in escrow. The fee your being charged is really more of escrow instructions since it is between you and your agent. After you are in escrow and have lender approval then have your agent contact the escrow co to adjust the escrow instructions per whatever you guys agree upon.

In my particular case, what irked me more than the fee really, was the timing of its disclosure. My agent only disclosed the fee after I picked it out of the faxed GFE and asked her "what the hell is this fee for?" After she explained what it was I told her that she needed to figure out another way to cover the fee because I wasn't going to pay it. After I confirmed with another source that she would have to eat the fee if I didn't pay, I went ahead and paid it. Up until that point she had done a great job and went the extra mile on getting a deal closed so I didn't want it to come out of her commission.

[ruready1st]

Your not the only one who discovers this fee late in the game.

We had to pay ReMax $295 last summer.

Others have posted about it as well in the past.

https://www.city-data.com/forum/las-v...ction-fee.html