We've been reporting about these administrative fees (locally, we have seen a charge as high as $595 - see post of 3/30/09) charged by the high commission brokers OVER AND ABOVE the 5, 6 or 7% commission and many times come as a last minute surprise to sellers. Now comes a court ruling in a recent class action suit that should force these brokers to make full disclosure upfront. Sellers on the other hand need to use their head when choosing a broker. Our low commission rates have no surprises at the closing and our record is backed by 25 years in business. We realize it is very difficult for some sellers to break bad habits such as paying a high commission. Perhaps knowing the additional fees at the end might give these people the strength to break away and join the smart Homeowners Concept sellers.
Reporting from Washington -- A federal district court has handed down a ruling in a class action that could have a direct effect on the fees you pay to the real estate company at closing, whether as a buyer or seller. The decision targets one of the most common practices adopted by brokerage firms in recent years: charging consumers "admin," "processing," "ABC" and other mystery fees ranging from $150 to as much as $500 per transaction. The fees are tacked on top of regular commissions and sometimes come as last-minute surprises on settlement sheets.... For the rest of the article go to: http://www.latimes.com/classified/realestate/news/lafiharney10-2009may10,0,397967.story?ref=patrick.net
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Thanks for the information. As if you dont pay enough commission they have to charge you extra?
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