Are Real Estate Commissions Illegal in a Private Transaction

[Stephen Fryer]

I have three off market investment properties for sale in Indiana. When I say off market, I mean that I am selling them privately. They are not listed on the MLS and I have no seller agent involved in the transaction. I have shared them through my network, marketed them on Craigslist, Facebook and BP. I have a buyer, who also happens to be a real estate agent. She is buying the properties for her own portfolio. We have agreed on price and all the terms of the contract with the exception of the commission. She is insisting on charging a buyers commission of 2% to cover her costs to the broker, who requires that all her transactions go through the brokerage.

Under normal conditions, if a broker or agent came to the table with a buyer I wouldn't begrudge paying the commission, but in this instance, she is representing herself in a private transaction. I don't understand what the fee is for and it seems highly inappropriate. Is it even legal? I couldn't find any state laws or regulations that would apply. Any insights from the collective would be appreciated. 

[Joe Splitrock]

@Stephen Fryer she likely has an agreement with her broker that any real estate deal she does is subject to fees. Bottom line is it doesn't matter. She is lowering her offer 2% and you need to decide if you accept it or counter. You can ask her to increase her price to cover the commission. It is a negotiation so figure out what is in your best interest to get the deal done. You already said you would pay it in other circumstances, so it seems that may be your answer.