Hello BP Community,
Just signed a purchase contract as a buyer in Florida. The seller has an agent but I do not as the buyer. The seller's agent prepared the contract, had the owner sign it first, then presented it to me. In the additional terms, the agent added "Buyer agrees to pay (RE Firm) a regulatory compliance fee of $349 at closing." I do not think this is fair since the agent is presumably collecting the additional 3% buyers agent commission. My RE lawyer said absolutely do not pay that, so I crossed it off. Has anyone seen this and what is your take on it?
Also, we added an additional term limiting or capping the closing agent's fee to $395 and agreeing to pay $25 for the simultaneous issue fee. Verbiage said that anything is excess of these amounts will be paid by the seller.
Thoughts or comments on the above? The seller has two days to respond.
You should hire agent to handle the deal. I see a lot of new comers want to do things themselves to save a few pennies and in the long run it cost them, You can not cap a closing agent's fee but you can try and there is a good chance you want get the deal done.
The $395 fee has become quite common. In my area they call it an administration fee. If I were in your situation I would absolutely say it's gone. Let the agent suck it up since he or she is getting double commission.
A court ruling said becuase of the Real Estate Settlements and Procedures Act (RESPA) it could not be charged unless it was specifically agreed to in a listing contract as additional commision. RESPA says a fee cannot be charged at settlement unless a service is provided. They are not providing you with any service. However if it is in the sales contract it may be legal for them to collect. I would argue contract or not it is not legal.
As far as the closing agents fee I am not familiar with what is customary in your area. I pay a lot more than that for a closing but it is a lot a fees with various names.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!