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#380106 - 06/19/11 04:34 PM Fees charged to buyer's agent
TerrySNJ Offline
Member

Registered: 09/06/08
Posts: 29
Loc: New Jersey
Has anyone else run into this situation? I've been trying to figure out the reason that listing brokers charge a fee back from what they pay as cooperating brokers to sell their listings. Our MLS allows listing brokerages to put in a percentage to the selling agent for a specific property. Then they also put in a flat fee that they want back from the selling agent. I've always questioned the reason for the fee but have not always gotten a satisfactory answer and my objections have been overridden. I've asked the listing brokerage for an itemized list of services that were provided to me for that fee. The answers I've gotten back are "Because our company policiy states that we have to charge that." and "Because we can".
Has anyone else run into this ansd what is the fee for?

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#380112 - 06/19/11 06:08 PM Re: Fees charged to buyer's agent [Re: TerrySNJ]
KT Offline
Major Contributor

Registered: 01/18/05
Posts: 1525
Loc: Ohio
I have seen them. I also have a good response, a quote, actually, from a Stephen King book that I use as a reply. But, I'd probably be banned for life posting it here, lol!

Their company's policy, or because they can, will not, cannot, and should not, affect my broker, my company, our clients, or my personal bottom line. We do not work for "them." As IC's that signed with one company, another broker can't tell us that we're going to pay them, some made up, good for nothing, BS fee!

A company here tried this, and tried to put it their standard purchase agreement. It lasted less than two secnonds.

Companies should be checking w/legal type people & their states' DRE before doing cr*p like this.

~So not legal advise.

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#380216 - 06/20/11 06:19 PM Re: Fees charged to buyer's agent [Re: TerrySNJ]
REODayton Offline
Major Contributor

Registered: 07/27/06
Posts: 3699
Loc: Dayton Ohio
Many state have filed class action suits against Brokerages for charging Brokerage fees to the consumer. Nobody knows what the heck it means, its just a fee.

So if they can't get it from the consumer now, they will try to get it from the buyers agent.

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#384153 - 07/24/11 03:40 AM Re: Fees charged to buyer's agent [Re: TerrySNJ]
BENEDICT Croatia Offline
Member

Registered: 07/23/11
Posts: 34
Loc: Croatia
In Europe its a little different, but brokers always try to find commission somewhere. Its understandable, that's why they work. Its up to state legislation to put order in all this.

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#384240 - 07/24/11 07:42 PM Re: Fees charged to buyer's agent [Re: TerrySNJ]
ColoBroker Offline
Major Contributor

Registered: 11/03/07
Posts: 2335
Loc: Northern Colorado
If a listing broker can out of the blue for no real reason charge a fee to the selling agent why can't the selling agent charge the listing agent a fee also? I think I'll try that if this ever comes up for me. I did see one on a very low priced short sale listing not long ago.
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#384421 - 07/26/11 11:06 AM Re: Fees charged to buyer's agent [Re: TerrySNJ]
shana Offline
Major Contributor

Registered: 11/06/07
Posts: 1602
Loc: Nevada
some banks and REO clients forbid their listing brokers from charging "admin" and similar arbitrary fees to the buyer side. these fees might also be restricted under state law.

any such fee included within the purchase contract is subject to negotiation, so the buyer's agent has to be alert, in order to protect the buyer's interests. if the buyer instructs his agent not to pay the fee, or to lower the offered price accordingly, per a counter-offer, that contractual provision will prevail, NOT the listing brokerage policies.

the buyer and buyer's agent are not employed by the listing brokerage, and therefore NOT subject to the listing brokerage's internal company policies.



Edited by shana (07/26/11 11:24 AM)

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