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Law Office of Randall A. Fischer P.A. At Stuart

2100 SE Ocean Blvd #203, Stuart,
Martin, Florida 34996
Phone: (772) 463-7737


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St. Lucie, Florida 34984-5232
Phone: (772) 463-7738


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1080 East Indiantown Road #104
Jupiter, Florida 33477
Phone: (561) 316-7111


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Real Estate Brokerage Charges Separate from the Commission

Real Estate Brokerage Charges separate from the Commission

I have received many calls and have had several consultations regarding charges appearing on HUD’s. Often some of those charges are applied without the client’s approval and knowledge prior to reviewing the HUD just before closing. Further, the client does not know what he is responsible for paying and why. Real Estate Brokerage companies like to include these charges on HUD’s when they had not been disclosed and contractually agreed to be paid by the buyer or seller of a home.

It is important to review your agreements with listing agents and buyers agents prior to entering into the contract. When you are deciding on an agent/brokerage firm a lot of the decision making is focused on the personality of the sales agent and the ability to show and sell the property. It is equally important to review the listing contract. This contract dictates your relationship. It governs how the property is sold and how much you are obligated to pay. If there is an aspect of the contract with which you are uncomfortable, let the agent know.  If the agent is unwilling to address the issue or indicates this is how they conduct business, you can either tell them you want to make the changes and if you are uncomfortable with making the changes contact a lawyer or don’t hire them. If you do not address this at the formation stage of contractual relationship, you will be subject to the agreement. Don’t put yourself in a situation where you are going to be upset at the closing.

Often one of these charges included in the listing contract is a charge which is characterized as a Brokerage Fee, or Contract Storage Fee, or it is called some other name. These fees are mentioned separately and are included above and beyond the commission. You do not have to agree to pay these fees. If they are contained in the listing agreement, remove them and let your sales agent/Broker know you are not paying them as part of the agreement. This is a contract. You can negotiate the entire document. If they will not agree to remove the fee, you can hire another real estate brokerage company. In the event they are not included in the listing agreement and they just appear on the HUD, tell the sales agent/Broker that you will not pay these fees and that you did not agree to pay these fees. The real estate sales agent and the Real Estate Broker are compensated via the commission received on the contract.  If you have any issues regarding fees listed on the HUD, first talk to the title company handling the closing, explaining that the fees were not agreed upon and are not part of the contract.  If the Title Company and Real Estate Brokerage firm do not agree to remove the fees, call my office before closing.  You will have to pay for the consultation, but it should be less than the fees.  It is also important to make sure you receive the preliminary HUD and review it carefully before closing.  If you do not understand the HUD, first call the title company and request they review the charges and how they arrived at the figures on the HUD.  If they do not properly explain these figures to you, call my office and we can review them.

If you are buying a home and see charges on the HUD to which you had no knowledge and did not agree to pay prior to closing, request to see the source of the fees and where you agreed to pay for them.  You should have received an estimated fee schedule prior to hiring the title company and a fee schedule from your bank, check the figures listed on the HUD against the figures in the estimate.  If there are figures that you did not agree to pay, request they be removed.  If there are figures which are not near the estimate, request the figures be reduced.  If they will not agree to reduce, call my office.  Do not close.

If you have any questions about the fees being charged by your realtor, need help reviewing you contract or closing documents, or need help sorting out a real estate matter, please give my office a call and schedule an appointment.

 

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