Is This Realtor Trying to Rip Me Off? - Posted by eric


#1

Posted by Laure on December 14, 1998 at 22:44:58:

I closed on a house about 2 weeks ago, and on the closing stmt. was an additional $300.00 charge to the seller (I was the buyer) and I questioned the escrow agent about it. She said this particular agent charged a premium for her services !!! I was a bit shocked to say the least. I certainly wouldn’t pay it if I were them.

Laure :slight_smile:


#2

Is This Realtor Trying to Rip Me Off? - Posted by eric

Posted by eric on December 14, 1998 at 18:40:29:

Hello!

Im buying a home in PA.

I have my own title and mortgage company.

My Realtor–someone Ive never dealt with before–added a $50 fee to the estimated closing costs that he prepared for me. I asked what it is… he said “Broker Fee.”

I asked, “Loan Broker?”

He said, “NO–OUR FEE for doing the paperwork”

I responded, “Why would I–the BUYER–need to pay your fee. The SELLER pays your fees.”

He snapped back, “In PA it’s allowed.”

My questions are:

  1. Must I pay this? Is it typical?

  2. When would they get to put this in my costs if I have a title company of my own (a friend of my parents) and I already have a mortgage co that approved me.

  3. What can I say to this Realtor? They are not the listing agent. If they give me a hard time, should and CAN I go to a different Realtor… or directly to the listing broker who is a different real estate company?

Thanks for your help!!

Eric


#3

Re: Is This Realtor Trying to Rip Me Off? - Posted by Rob FL

Posted by Rob FL on December 14, 1998 at 21:21:27:

This is a new practice that some Realtors are doing. However, they cannot force you to pay it unless you have an agreement with them. If the Realtor charging the fees represents you and you have a prior agreement with them setting out these fees, then yes you probably have to pay them. On the other hand if they are now surprising you with these fees after you have already signed the purchase contract, then these fees are probably unethical. If the Realtor has really helped you, I wouldn’t worry to much about another $50. But if you think he is trying to gouge you, then you may wish to find another Realtor and file a complaint with the state licensing board.


#4

Re: Is This Realtor Trying to Rip Me Off? - Posted by Irwin

Posted by Irwin on December 14, 1998 at 20:03:48:

If you’ve never dealt with this person before, how did he become your Realtor in this deal-not that it matters.
I’m not in PA, but offhand I can’t think of any documents that are prepared by the buyer, or the brokers. They are all done by the seller, the lender, or the closer-usually the title company.
I’d first ask for an explanation more than,“it’s allowed”. Then (assuming it shows up on the final closing statement) ask them to remove the charge. If they don’t, go ahead and close and afterward file written complaint with the PA real estate commission. They’ll either support you and order a refund, or tell you the Realtor was within his rights.


#5

Re: Is This Realtor Trying to Rip Me Off? - Posted by eric

Posted by eric on December 14, 1998 at 21:03:01:

Thanks for your reply.

I guess he’s referring to his preparing the agreement of sale and the estimate closing costs and all those other forms the Realtor completes.