In 2009 there US District Court found that real estate brokers charging “add-on” fees were a violation of Federal Law. YIKES…so those buyer transaction fees of $295 could be a violation of Federal Law. Now, if your Realtor® discloses such a fee in proper manner and can prove additional work was done above their real estate standard services they provide as a Realtor® that they are paid to do through a real estate commission, then RESPA and HUD seem to be ok with the fee.
Many Realtors® were charging additional fees paid to perform a short sale which RESPA and HUD didn’t have an issue with, but the FLORIDA MORTGAGE BROKERS authority did, OFR. To which the OFR made such fees illegal as well.
My point is, if you are a realtor charging these fees be-careful because you are asking for a RESPA Violation, and you are inviting a headache into your office called the US GOVERNMENT. For the extra $295 it better be worth losing your license, your business and your livelihood…Otherwise, i’d stand clear of such fees. If your broker is charging them to you, GOSH, do they know it is “Violation of federal law?” If not, are they the broker you want to work for?
If you are a buyer and your buyers agent at the closing table has indicated to you, “oh by the way, you owe an additional $295 Transaction Fee at closing.” THEN tell your buyers agent to show you where he/she properly disclosed this fee and if they didn’t say, Thanks but NO THANKS, i wont be paying this fee. If they cry and say their brokerage charges the fee, say, then why didn’t you disclose this when we first started looking at homes? If you are a buyer who wants to work with an agent who is happy to earn a real estate commission and nothing else..Then lets talk!!! Thanks Justin Ruzicka your Houseguy.org.