I am purchaing a home through a remax agent. She has charged me $250 for compliance fees? What are these char?

Question

I am purchaing a home through a remax agent. She has charged me $250 for compliance fees? What are these charges? Is it costomary.

Any Advice will be very helpful

Thanks in Advance

Answer 1

Why wouldn't you ask your agent to clarify what the charges are? If you feel that his or her answer is unsatisfactory, then ask the agent's broker, or find a new agent. There may be a perfectly reasonable answer to your question. Certainly don't pay a penny if you don't know why you're paying it.

Answer 2

Ask your Realtor or the Realtor's Broker to explain this
fee.

Some Real Estate Brokers, (when representing the Buyer),
will charge an "Administrative Processing" Fee. (Different
Brokers "may" call this fee something else) ... But, this is
a fee that the Broker charges the Buyer for Processing the
transaction for the Buyer. (This fee CAN be questioned, and
it some cases it "might" be waived by the Broker)

The other time that I have heard the term "Compliance Fee"
is when my client was purchasing a Bank-owned property.

In this case ... It was the Listing Office (the office that represented the Bank/Seller) ... that charged this fee. The
Listing Office does not (always) receive a standard fee for
Bank Owned properties .... and I believe that this is a way
of off-setting some of the Broker expenses in processing
Bank -owned property.

Your Realtor, Loan Officer, Appraiser .... And ANYONE else
that charges you a fee during the course of a Real Estate
transaction ... Should be prepared to EXPLAIN any fees that
you are being charged.

I (always) recommend that my clients get a COMPLETE
explanation for ANY and ALL fees.

Answer 3

I am at a blank as to what a compliance fee really is, especially being charged by a Realtor.

I have seen more than my share of closing statements, and can not recall this fee, or any upfront fee charged by any Realtor.

It sounds to me that your Realtor was just trying to get a cash commitment of some sort from you before dealing with you, but I could be, and hope I am, wrong. If they did do this, they may have violated the fiduciary relationship that is supposed to exist between the Realtor (or mortgage broker) and the client.

I would definitely find out what this fee is, and any and all upcoming fees that you may not be aware of. I don't know what state you are in, but considering that the Realtors that answered before I did don't know this fee; and since I finance transactions that deal with most of the major real estate companies, and I can't recall the fee, Definitely get FULL DISCLOSURE from your Realtor.

All of this advise that I am throwing out stopped me from thinking clearly and I forgot to take into account the rapidly changing real estate and financing laws. This fee MAY be a new state (tax) fee (for your state) that we have not yet come across. Still get full disclosure.

Hope it helped, good luck

Answer 4

Although everyone thinks we make money hand over foot, there are a number of real estate brokerages that have gone out of business. In an effort to diffuse costs some brokerages are charging a small fee for all the paperwork we're required to fill out and keep on file (in order to comply with state & federal law). Any of these fees should be disclosed in advance and should be charged at the closing. Look for them in the states most effected by the downturn.

Answer 5

Don't pay any fees to an RE Agent!!!!! That's if your a BUYER. Your best bet would be with an agent, let's say ZipRealty. You'll be getting a percentage back once you make a purchase. Traditional RE Agents will be paid anywhere from 3-6% of your purchase price. Ziprealty will give you 20% of what they make to you, the buyer. They also allow you to choose which homes your intested in (picture, map, discription) plus updates each day (new listing, changes). We're currently working with an agent who works for Ziprealty and we're happy. See for yourself.

Answer 6

I am a Realtor myself,I have not heard of a compliance fee. At the company I was last at they would charge 150.00 for 1 % less to list ,like 7 percent or 6% and 150.00 your choice.
But it was all know up front and you had to sign that you knew you were being charge that and what it was for.You might ask
what it is for then call the Board of Realtors in your area and ask of they know what this is and if it is an approved of practice ,if not turn them in to the state board of Realtors for reveiw.

Answer 7

I am not a Re/Max agent, but I do know that at least some, if not all, Re/Max offices charge it.

As for the seller paying all broker fees, I would say "usually but not always, that can vary from transaction to transaction".

Like was already suggested, you should feel free to question any and all charges!

Answer 8

We got an estimate of 2,000,00 government compliance fee for the agents office.

Answer 9

You shouldn't be paying anything to your agent. Broker fees are paid by the seller.

Answer 10

Back out of the deal and find yourself another agent!