Seller Real Estate is charging me $250 at closing for what?? - Posted by Joe

Real Estate Investing
#1

Posted by JD on December 15, 1999 at 16:25:52:

The actual FHA wording is that there are some loan fees that it is prohibited to charge to the Buyer. Many Real Estate agents, either intentionally or unintentionally, misquote this to say that there are some loan fees that the FHA requires the Seller to pay. The loan agent will send docs to Escrow with the instructions that the Seller be charged for “Document preparation” and “Underwriting fee” (usually about $400). They get away with this about 90% of the time (there are not many people that would back out of a contract over $400), so they can get rather brazen about it. I try to spell out from the start in a counter offer to the purchase contract what loan fees I will pay, but despite my best efforts I still encounter problems.

#2

Seller Real Estate is charging me $250 at closing for what?? - Posted by Joe

Posted by Joe on December 14, 1999 at 13:49:48:

I have a property under contract which I’m closing on Monday. The Real Estate for the seller is charging me $250 for “Agents Service”? He was not working for me! He has not done me any favor but complaint about my low offers! Whe I ask her she saids “Its for the paperwork, faxing and sending papers overnight to seller”. Not only she wants $250 for her service but all the closing fees (notary, taxes, transfer tax, recording, etc) she wants all $$$$ in one bank draft check. Speaking of persistant! I only have $300 on this deal…should I walk out without getting back the $300 deposit? Should I tell her to TAKE A HIKE? :>)

What do you all think I should do.

Joe

#3

Ask the settlement company for the HUD 1 - Posted by Paul Macdonald

Posted by Paul Macdonald on December 16, 1999 at 01:09:06:

It is your right to get the final HUD 1 settlement sheet well prior to settlement. Demand it. Refuse to pay that which is bull… but make sure first that you are correct. Hire an attorney who is on your side. Cheap insurance considering that the realtor is trying to cheat you.

“Its for the paperwork, faxing and sending papers overnight to seller”. > Too darn bad!

Not only she wants $250 for her service but all the closing fees (notary, taxes, transfer tax, recording, etc) she wants all $$$$ in one bank draft check. > she has no right for money prior to settlement. Bring one check for any amount due. AFTER your advisor goes over the fees.

If I were you I would file a complaint with the Board of Realtors about unethical and dishonest behavior. Get mad. And even. Help that loser lose her license.

#4

Wasn’t your agent… - Posted by steve

Posted by steve on December 15, 1999 at 15:05:10:

…so you shouldn’t have to pay it. All those services were rendered for the seller’s benefit, not yours.

#5

Re: Seller Real Estate is charging me $250 at closing for what?? - Posted by Eric

Posted by Eric on December 15, 1999 at 14:48:20:

Sounds to me like a closing fee - not only are you responsible for paying for the service of closing escrow but also any other fees that are required by your lender the seller is responsible for paying the agents commission ,taxes for year to date ,updating title and preparing the deed . Hire a reputable (check references first) attorney now! The time to have legal counsel is going in - not when you’re trying to get out. Realtors spend most of their time educating the public and paying for advertising to find people to work with Just slamming an agent for your mis-understanding is reprehensible. Any of my clients know going in what costs, fees, and other expenses are before tendering an offer. Best of Luck Eric

#6

Not One Cent For Tribute! - Posted by Hugh James

Posted by Hugh James on December 15, 1999 at 10:01:26:

Unless you had an agreement with this agent (broker?) to pay a fee then you owe nothing. Is this agent acting as a closing agent too? Why would personal fees to an agent be comingled with certified funds to the title company or escrow agent? You don’t say what state you are in, but I would probably be making a call to your state regulatory people, and I’d let your agent know what you’re up to. And you do have an attorney – don’t you??

#7

What I would do - Posted by JD

Posted by JD on December 14, 1999 at 18:52:16:

I encounter similar situations when Selling properties to people getting VA or FHA loans, in my situations it is the loan agent that is trying bilk the Seller.
I would write a letter to the Seller, Seller’s agent, and escrow company stating that you believe that the stated $250 fee for “agent services” is contray to your purchase agreement. In the letter say that you demand the fee be removed, that you will still close if the fee is not removed, but that you want the Seller to agree to binding arbitration with regard to the disputed $250 fee (with the loser paying the arbitration costs). Also state that if they refuse to remove the fee or sign the arbitration agreement, that you will still close, however you will pursue legal action against some or all parties in order to recover the bogus $250 fee. State also that you will seek to recover court costs and attorney fees if you are required to take Court action.

#8

Re: Seller Real Estate is charging me $250 at closing for what?? - Posted by SH

Posted by SH on December 14, 1999 at 16:54:11:

Your contract is with the seller. Unless you agreed on these fees (with the seller) as part of your purchase contract, this agent doesn’t have a leg to stand on.

The agents compensation is outlined in the listing contract they have with the seller - - it is a contract between agent (agent’s broker) and seller.

Again, as buyer, you don’t have to pay this “cheezy” junk fee if it’s not part of your sales contract.

If they are the broker, tell them you’re not paying that fee, that the seller can pay it if he wishes.

Scott Hearne

#9

This is totally unethical and in most places illegal. - Posted by GL

Posted by GL on December 14, 1999 at 14:56:12:

The real estate agent represents the seller. She has a contract with them and is their employee. To receive money from you would be to say the least, a conflict of interest. It would be to say the most, fraud.

This is totally unethical according to every real estate board regulations I ever heard of.

What does your lawyer say? You do have a lawyer don’t you?

#10

Re: Seller Real Estate is charging me $250 at closing for what?? - Posted by GL

Posted by GL on December 14, 1999 at 14:34:06:

Tell him/her you are wise to his/her illegal scheme.Tell him/her he/she is not getting a cent. Threaten to turn him/her over to the real estate board and the police for fraud. Yell and scream alot. Finally calm down when he/she begs you for mercy and let him/her off with a warning as long as he/she pays all your closing costs. LOLROTFLMAO

#11

Junk Fees - Posted by Carmen_FL

Posted by Carmen_FL on December 14, 1999 at 14:26:54:

These fees are becoming more and more prevalent in my little neck of the woods. It is usually the Broker who imposes it on their Realtors. Realtors are not happy either. Many “smart” realtors will swallow these fees (take them out of their own commissions) rather than alienate a customer. I never saw the sense in them.

As a buyer, I don’t think they can force you to pay this if you never signed anything with them. We usually get our buyers to accept this fee in writing on some piece of paper or other.

Our broker tries to get us to put it into the contracts, so if you used a standard contract during a counter-offer, see if it’s in there. We realtors sometimes “forget” to put it in, but then the broker (who gets the money first) usually takes it out of our cut, unless he’s feeling particularly friendly that day. Oh, well.

#12

‘Blue Sky’ is for the birds (no pun) – I wouldn’t pay it! (nt) - Posted by SusanL.–FL

Posted by SusanL.–FL on December 14, 1999 at 14:15:25:

nt.

#13

Re: Seller Real Estate is charging me $250 at closing for what?? - Posted by chris

Posted by chris on December 14, 1999 at 14:08:05:

Sorry that I cannot give you an exact answer but it:

Sounds like a rip off to me. Have you mentioned this to anybody in the area such as the local board of realtors or your title company, lawyer, etc.

What has the seller said about this? After all the agent is who they have an agreement with, not you.

Investors are usually the ones who are creative, not brokers.

#14

Re: Seller Real Estate is charging me $250 at closing for what?? - Posted by Nick

Posted by Nick on December 18, 1999 at 06:43:19:

I’m pretty much a newbie when it comes to real estate; but one thing I DO know is that no one is responsible for any sort of closing costs by default. CLOSING COSTS AND THE PERSON(S) WHO PAY FOR THEM ARE NEGOTIABLE!

There are numerous deals in which the seller has paid all of the closing costs, and there are numerous deals in which the buyer has paid all of them. It’s not the 11th Commandment, it’s a negotiable part of a real estate transaction.

Take a look at all of the ads that say something like “seller will help buyer with closing costs” or words to that effect.

#15

Re: FHA loan fees? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on December 15, 1999 at 11:49:01:

JD (or anyone else who knows)-

I’m selling to a buyer who’s getting a new FHA loan. I’ve been told by my realtor that some fees are required in FHA loans to be paid by by the seller. What fees should I be willing to pay, and what fees may be bogus…what should I look out for?

Stacy

#16

Re: Junk Fees - Posted by Bob-MD

Posted by Bob-MD on December 15, 1999 at 17:07:32:

Realtors are getting like banks with all their misc. fees. I just listed a house for sale and the listing agent had written in the contract a $125 administration fee along with their 6% commission. I told him that I would not pay the $125…that I thought it was BS. He said that if I didn’t pay it he would have to pay it and that all the offices are putting these fees in now. I crossed out the fee in the contract and initialed the change. I don’t care who pays it as long as I don’t. If enough people complain, maybe they won’t escalate like all the bank and closing fees.

Bob