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Updated over 10 years ago on . Most recent reply
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Is a $295 brokerage commission common for buyer's agent brokerage? (Palm Beach County, Florida)
QUESTION: Is a $295 commission or fee to my realtor's brokerage, in addition to the 3% sales commission common?
SITUATION: I recently asked my agent to draw me up a purchase contract for a vacant lot sale in Palm Beach County, Florida. Added in to the contract was the below statement:
- "A commission of $295 will be charged to the buyer by Keller Williams Realty for processing and storage of documents."
In a previous thread, I was given the impression that the buyer's agent commission was paid by the seller. The $295 was never brought up to me by my agent until I read it on the prepared sales contract offer…
Below is an excerpt from her email response to my asking about said fee:
- "As for the 295 transaction fee all the broker offices expect it on both side of the transaction in fact it used to be calla transaction fee and the respa rules changed it to a commission owed to the broker house for filing and storing closing papers for 5 years in case you need the file later on. I hate it and I try to pay it as a gift to my clients as I find it hard to pass on a
- Bogus fee in my opinion to my clients. As far as you and I discussing the this, I was hoping we would have discussed every page in detail on the offer and this would have been discussed but when we got to doing the offer it all went fast and we never discussed it or other items at all or at length.
- I did ask my broker as mentioned if I could pay on your behalf and she said I couldn’t let me ask her another way if I don’t put on contract paperwork and then pay them directly it wont seem like I am paying it at the closing table.
- Its like when the bank charges you to hold your money with a monthly fee
- And I give them 26 % of the commission, so something to think about in the future with me and ***** doing our own thing versus having a big time real estate name behind us and big time fee’s to pay them
Does her response match with standard industry practice or should I push back on what in her own words is a 'bogus fee?'
Thanks,
Jeff