I am buying a house in Pittsburgh, PA. Our realtor sent us this message and I’m curious about this “century 21 transaction management fee”. Is this a common fee?
“BUYER (TENANT) AGENCY CONTRACT - this said I am representing you as a buyer agent through this transaction only. The only fee to you is the Century 21 transaction management fee of $350 which is paid at closing. Century 21 must keep all files for 7 years for tax purposes, that’s what this fee is. Please initial bottom left corner of page 1 of 3, bottom left corner of page 2 of 3, & sign & date on line 161 by your name. “
@Steven Ko yes that is pretty typical. As a buyer you dont pay the real estate agent commission. The seller pays it for you. However you typically do have to pay the admin fee because the seller wont pay for that too. However if you are getting a VA loan you cant pay the transaction fee. It is not allowed by VA. You could however ask for the transaction fee to be wrapped into your seller concessions. This is the amount that you ask the seller to pay for your closing costs.
@Monica Breckenridge thanks for your reply! I just never heard of it before so I was a bit skeptical.
@Nicky Reader I feel you there. Out of three transactions, I’ve never heard of it before but this is the cheapest property we’ve bought so maybe that comes into play?
I think this is a fee that you can negotiate away.
I think I see this fee more often in areas where the cost of the real estate isin't high
@Steven Ko I'm with C21 in MA and don't charge any such fee.
I suspect that the agent is paying a transaction coordinator and wants to pass that fee on to you. I could be wrong, but either way, I'd refuse to pay it.
Archiving records is the cost of doing business, just like license renewal fees, E&O, CE courses, etc.
@Basit Siddiqi thank you, I think I might try and ask then if we can get rid of it. I’ve never heard of it before. Never hurts to just ask :)
Good thing you've asked the forum. Yes, as @Charlie MacPherson said, that is a cost that is being passed onto you and you can negotiate that away. There's a Cost of Doing Business and you should not have to absorb those costs if they were not disclosed to you.
The cost of how much you're buying the house should not relate to any of the costs for fees. Certain items are proportionate (closing costs, origination fees, relator %), this is not one of them.
I've never heard of that fee. State law dictates how long they have to keep files but I suppose there's nothing illegal about charging for the storage costs.
HOWEVER...a fee like that should be disclosed up front at the first opportunity. It sounds like they waited until you made an offer.
Did you sign a Buyer's Agency Agreement that spells out fees BEFORE you made an offer? If it wasn't disclosed until after you were ready to make an offer, I would push back and tell them they could either remove the fee or I would go to another Broker and make my offer there.
@Steven Ko BS Fee. Politely tell the agent you do not pay Transaction fees. This type of fee is meant to pad the commission.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing