I'm in the final stages of selling my primary residence, in fact the closing was today. My wife and I signed closing docs and a preliminary settlement statement a few weeks back in preparation of a new baby on the way. Well, the new settlement statement has a new fee on it and I'm trying to understand the how and why behind it. Can anyone help me understand how a "transaction coordinator fee" might have snuck into my final settlement fee as a sellers expense? Interestingly enough the fee is being charged by a fellow team member/agent on the buyers agent side. I'm scratching my head trying to figure out why this is a service I'm supposed to pay. Please help me understand.
Thanks in advance.
Based on my experience, A Transaction Coordinator is typically an unlicensed individual who fills out paperwork for a real estate agent. They basically fill the role of an administrative assistant, but it sounds fancier. I'm not sure why you would be paying for one - if the agent chooses not to complete his own paperwork, I would expect him or her to pay. Personally, I Prefer doing my own paperwork to ensure it is complete and accurate.
Thanks for the feedback Chris
I don't see how a buyer's agent can charge any fee to the seller. Any fee needs to be disclosed in the buyer rep or listing agreement, as Christopher mentioned it is for the unlicensed individual who fills out paperwork for the agent. Reject the charge and ask for an explanation to the title company. Maybe the buyer should be paying this and because it will change the final settlement agents agreed for you to pay an reimburse that money? To close on time?
I question if the buyer was charged a duplicate fee. This seems like a dishonest and unethical practice in my opinion.
Oh, I guess I should also say that if you aren't using any real estate agents, the title company may be using a transaction coordinator to complete all the paperwork for them. In that case, I would think the fee would be justified. Good luck with your sale!
Your point is noted Chris, thanks. That isn't the case in this scenario.
Both my listing agent and the buyers agents had TCs on deck to help them with the transaction. Somehow the buyers agent TC fee ended up on my sellers statement. What is the probability that this sort of thing would happen without people knowing about it? Clearly someone was trying to make an extra buck.
I've had incorrect HUD statement in 3 of the last 8 properties I've purchased. All three were from different title companies and had various inaccuracies in them. I don't think it is intentional.
If I were an optimist, I would assume that they would be fixed by the agents in the transaction prior to the closing table / final HUD. I am, however, a pessimist and I always check them out myself and confirm everything is correct.
Those are common in Florida....typically in S Florida. If it isn't something you signed in the listing agreement or part of the contract, just tell them to delete it.
And this is exactly why you need to scrutinize each and every line on your closing statements...
@Leigh C Thissis a different fee than the typical "record retention//transaction fee" you're used to seeing. A transaction coordinator is only present if an agent decided to involve one, for Their assistance. I can't imagine an agent trying to pass this fee along, especially to the other side, unless they're just a petty, scammy agent.
If it was not agreed upon with your realtor that you would pay for the transaction co-ordinator then you need to ask for a credit. I may have been a case of the title company putting the fee in the wrong column.
It sounds very official , and very much like a BS charge
@Loren Whitney It's a junk fee RE brokers charge. Refuse to pay it if it was initiated by the buyer's agent. If it was initiated by the seller's agent (I know it wasn't in your situation), it should have been in the listing agreement, and if it wasn't, I wouldn't pay it. Actually, I would refuse to pay it at the time of signing the listing agreement. It's totally a junk fee aimed to make the brokerage some extra dough. They claim it's for document handling and storage, but then what is the commission for?
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