No Buyers Agreement Prior to Offer...Now Realtor Seeks Admin Fee

[Matt Schelberg]

A question for foreclosure buyers from a novice: how common is it for a buyer's agent to charge the buyer a flat "office admin fee" for a foreclosure that closes? (fee is in addition to 3% commission). Purchase price is 64k.

Background: I first met the buyers agent several months ago when he was a listing agent for a HUD property. Did not buy that property, but I liked the agent and so called him recently when I found a HUD home I wanted to bid on. I asked if he wanted to represent me for this one, and he agreed. We saw the property together and submitted a bid on the same day. (He has not been working for me previously or sending listings). He did not provide me with a copy of the buyers representation agreement prior to submitting the bid, and I did not think to ask for the paper copy. When we discussed commission verbally he only mentioned the standard 3% commission paid by the seller. The bid was accepted and then he provided me with a copy of the representation agreement, asking me to sign. It includes a flat $200 "office admin fee" to be paid by the buyer at closing.

1) Is this standard?
2) If not, how do you recommend I handle it now that the bid has been accepted?

Lesson learned on this one. Identify the commission structure in advance and on paper.

Thanks,
Matt