Posted by B.T. on August 14, 2003 at 04:48:45:
What’s really the deal here? First you AGREE to their terms, which albeit unusual, are sure legal & maybe just the local custom; but now you want to welch, and want our help?
I have an urge to copy your post to the Broker, and I’d sure bet somebody else will too. So if I were you, I’d plan to be paying it-if you’re planning to proceed without also welching on your purchase agreement.
Brokerage Service Fee??? - Posted by Porter
Posted by Porter on August 13, 2003 at 20:27:29:
I have recently contracted to buy a house in Tennessee using a Coldwell Banker (Barns/Snow & Wall) real estate agent in Gallatin, TN, who worked hard in finding the right property for me. The Sales Contract (provided by the Coldwell Banker Brokerage) includes the following: “Brokerage Service Fee: A fee of $179.00 will be charged to the Buyer and/or Seller represented by Coldwell Banker Barns/Snow & Wall.” I did not sign the contract in ignorance of the wording; however, at the time I did not feel up to fighting about this fee which is abnormal in my experience. I do want the sale to go forward as otherwise contracted. However, I do not think that I should pay this fee – after all, the agent, not the broker did the work and the agent pays the broker a part of her commission anyway. Do I have any options to avoid paying this fee without jeopardizing the closing which is scheduled for two weeks from now?
Re: Brokerage Service Fee??? - Posted by rm
Posted by rm on August 23, 2003 at 16:34:00:
This is a junk fee, pure and simple.
Brokers have begun adding these in the last few years to boost their profit margins.
Absolutely no additional service is rendered to justify the fee.
Bark loudly enough and they’ll drop it.
Re: Brokerage Service Fee??? - Posted by Nate(DC)
Posted by Nate(DC) on August 19, 2003 at 21:37:33:
I wouldn’t consider this uncommon. Virtually all of the major brokerages here in the DC area charge some sort of service fee. Typically it is $195 so you could look at $179 as a somewhat more reasonable fee.
NT
Re: Brokerage Service Fee??? - Posted by Bert
Posted by Bert on August 18, 2003 at 09:48:49:
All contracts are with the Broker not the Agent. The Agent gets paid from the Broker not the other way around. The fiduciary obligation is the Broker working on be-half of the Buyer or Seller. Any business conducted by the Agent is for the Broker. If you want to ensure the Agent gets paid it MUST go through the Broker. It is illegal for an Agent to accept compensation directly.