I see a lot of the listing agents asking for money. Im not sure if they are really putting it towards the second or if they are just putting the money towards the negotiator fees.

I remember this big stink coming out. I, too, was surprized by the number of agents "charging" their seller or buyer an "admin fee". I thought "you lucky dogs!"

What I don't understand is how any gov't agency can "dictate" what our fees are. If YOUR buyer or seller know IN WRITING UPFRONT that they are going to pay a $450 admin. fee above any commission, I'm suspect it's legal to do so because it's IN WRITING. But a Listing Agent cannot "charge" a buyer a fee unless there was written consent.

My buyer's agreement - where it discusses Commissions - I added: "Commission would be at least x% of the sale price as paid by the cooperating listing broker. If commission is less than x% of sale price, Buyer(s) shall pay the difference, due and payable, at settlement to Broker.

I would not doubt I could add an admin fee also - but I think the key here is to disclose it IN WRITING and perhaps state what it is being charged for. I see alot of "storage" fees". Lenders must now disclose in writing what their charges are. Am I right or wrong in my thinking?

I agree and think you are right. Disclose, disclose, disclose! And if the buyer is the one paying, then make sure it's on the purchase contract, just as escrow and title fees are.

In a related topic, what does everyone think about the lsiting agent charging the seller's agent a kickback fee? I've tried getting a better understanding of this but with no success. The banks don't see the amount because the sales contract states the net dollar amount that each side will get.

Any $ amount paid by the agent to someone not authorized by the seller, is not legal. (where I am)

[quote=pikes peak]Any $ amount paid by the agent to someone not authorized by the seller, is not legal. (where I am) [/quote]

I agree but I can't seem to get any definitive answer from anyone. Basically, our MLS shows a compensation pay as "3% -$100" I've never been able to get a straight answer as to why I have to kick back $100. Has anyone else run into this? One MLS sees no problem with this and another does not allow it (both are privately run services).

Our MLS has specifically stated that it is not allowed. Any time I see it I report it to MLS.
Our company charges a $295 fee that is waved on REO listings and on Short Sale listings under $250K. If the seller does not pay it we do.

If you do 100 listings a year and charge the selling agent $250 on each one that is a healthy chuck of change per year. I can see where some agents are tempted but in our area it is not allowed though I am sure some hungry agents just pay it to get the deal done.

IMHO we must actively fight it or it will spread.

Even if not a violation of RESPA, it may be a violation of MARS.

"In Augenstein v. Coldwell Banker Real Estate LLC, decided on August 30, 2011"

Something to think about:
Trial Court Purports to Regulate Brokerage Compensation under RESPA

If an agents duty is to their sellers, then how can charging a negotiation fee to the buyer/buyers agent be conducive to that? That really limits the amount of buyers you will get, especially on lower end homes where the buyer may not have the extra money to pay the fee. Even if it is disclosed, it just doesn't seem right to me.

Someone has to pay the fee. Sometimes it's the listing agent, sometimes it's a 50/50 agent split and sometimes it the selling agent paying the fee out of the commission. To be honest, the banks usually knock down the commission to agents anyways, so the one party that benefits the most from the sale (the buyer) should be the one paying (IMHO).

If it's a low end deal, the buyers are usually doing something like an FHA loan and many banks will agree to some form of "closing costs assistance". Basically, the bank ended up paying the negotiation on many of our office deals.

This is very common in Las Vegas. Fees are not allowed to be charged by a licensed agent though. We must call it a commission. Commission is the only compensation we are legally allowed to receive, regardless of the charged item.

For California agents, please refer to DRE Winter 2011 Bulletin. On page 3, there is a article on the legality of the fees in California. This was in response to a letter my broker wrote to DRE requesting clarification.

Basically it states it is legal, as long as the negotiator is properly licensed in California and written disclosure has been made to all parties including all lenders. It must be on the appropriate lines on the HUD-1 statement and be for actual services performed.

For us, we include it in the listing agreement, it's disclosed in the MLS and we make it a part of the purchase contract through an addendum. It's also included in all HUD-1s by the title officers we use.

The fee is paid to a Broker who does not list and ONLY does negotiation. Listing agents do NOT get any part of it. This system allows agents to focus on prospecting, marketing and handling the transactions without being on the phone all the time with banks.

I don't charge any fees but I know of many agents who do. Some even charge a retainer fee that the client is required to pay even if the contract does not go to closing. As long as it is written into the contract and is on the HUD-1 at closing and is being paid to a licensed agent/broker, it does not violate RESPA.

I've seen one agent here charging a $2995.00 short sale fee with a 3% buyers commission on a sub $20,000 property. I dont know if it was a typo or not but I cant imagine presenting those terms to a buyer.