Recently, a court case has been in the news...many may have overlooked it if you're not IN the real estate business. This case was Busby V JRHBW REALTY Inc. (d/b/a RealtySouth) in the US District Court for the Northern District of Alabama.
What this case said was that "administration" fees were a violation of the Real Estate Settlement Procedures Act (AKA RESPA), section 8(b).
This brokerage was charging $149 fee on top of their normal commissions. The District Court said that the fee was not tied directly to any service provided and hence it violated the RESPA law.
Now, I have to say that I disagree with the idea that it violated the RESPA law as I understand it, but that doesn't mean that I don't agree with the spirit of what the court was saying.
When I was with my former Brokerage, Keller Williams Realty, Katy@ Cinco Ranch, there were classes taught on how to collect a "TRANSACTION FEE". In these classes, the focus was on collecting the fee to increase the net income of the agent. It wasn't actually presented as a deferrement of costs, in fact, it was often presented as "something my broker charges".
As an agent, you are not an employee of the firm that you work under. You are an independent contractor. Coming out of the class, I have to admit that the idea of adding $10,000-$15,000 to my yearly income (without doing any additional work other than asking for this "fee") was an attractive idea. However, the idea of how it was done wasn't.
Sometimes we are led places we do not wish to follow and I am glad that I never instituted the idea of a "transaction fee" into my real estate business. I know that many of the agents that did this are now probably scrambling to figure out if they are on the wrong side of this ruling and I'm not concerned about my business...having done what I FELT was right.
Let me also clarify that I am not talking about "Retainer" type fees that agents may charge in order to be hired by a buyer or seller...that is a horse of a different color and can certainly fit in with certain models for conducting business. However, the straightout fee that is not attached to any particular service is what this ruling deals with and has always been wrong my opinion.
Now I know this is going to tick off a lot of agents that charge this "junk fee". Let me apologize for calling it like I see it right now. There are agents nationwide that do this as shown by this court case and I know of many agents right here in Houston and in the Katy area that charge this fee. Some collect it at closing and some collect when they list a home...it's just never felt "right" to me.
So I guess I just wonder, why didn't they just ask me!? LOL!
BTW, FYI, this junk fee shows up under many different names: Transaction fee, processing fee, broker fee, administration fee...etc. The key here is this: Is this fee for any particular service or good, independent of the services that a commission is earned for?
Call us now if you are looking to buy or sell a home in the West Houston and Katy Texas area! We are area specialists who guarantee our results!
Call the team that knows Katy at 281-935-7152 or our Toll Free information line (anytime):
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The Gathering Of Eagles for 2009 will be held on Tuesday May 12, 2009 at 6:00pm. The event will be held at Minute Maid Park!
The keynote speaker this year will be Distinguished Eagle Scout and NASA Astronaut Michael Fossum.
I am proud to be one of those that attained the rank of Eagle Scout during my younger days.
If you would like more information about The Gathering Of Eagles, a fantastic opportunity to meet and network with a rare select few in the area that have attained the rank of Eagle Scout, you can go to the website:
www.thegatheringofeagles-houston.org
Call us now if you are looking to buy or sell a home in the West Houston and Katy Texas area! We are area specialists who guarantee our results!
Call the team that knows Katy at 281-935-7152 or our Toll Free information line (anytime):
Call (877)472-5390 and use the code to hear about the guarantee:
Easy Exit Listing Guarantee Code: 7003
$5000 Buyer Guarantee, Code: 7004
The Wood Working Shows, coming to the Merrell center in Katy Texas April 3 and April 4 and April 5.
Tickets are sold for single day event: $6
Or for multi-day pass: $9
Parking is FREE!
Free Admission to:
Active Duty Military
Police
Fire
and to Children under 15
For the full details:
Call us now if you are looking to buy or sell a home in the West Houston and Katy Texas area! We are area specialists who guarantee our results!
Call the team that knows Katy at 281-935-7255 or our Toll Free information line (anytime):
Call (877)472-5390 and use the code to hear about the guarantee:
Easy Exit Listing Guarantee Code: 7003
$5000 Buyer Guarantee, Code: 7004
Yes!
It's the same feeling I get everytime we close a short sale. This particular short sale was a really tough one to get done. The bank was not particularly involved with us (in other words lacking communication) and it made for some huge issues during the ride.
I'd also like to take the time to publicly thank all of the agents that showed this great little short sale and to all the buyers who showed interest in it.
If one of the BEST parts of the short sale is the relief that home seller gets when we finally get closed, one of the worst is knowing that you disappointed so many buyers and their agents whose offer did not get selected. Such was the case with this one...over 28 offers came in on this short sale. That means that 27 potential buyers are disappointed with the outcome of this sale. One buyer was happy...
Great Home in Lakeville, 20918 Walder Court--SOLD!
Please, if you are facing a foreclosure, facing getting behind on your mortgage or just need to see what your options are with your home, don't call just anyone! Call us NOW because time is NOT on your side when it comes to short sales and avoiding foreclosure. We are heading into PRIME selling season right now and the market is going to get competitive but there will also be more Home BUYERS out there as well!
Call us now if you are looking to buy or sell a home in the West Houston and Katy Texas area! We are area specialists who guarantee our results!
Call the team that knows Katy at 281-935-7255 or our Toll Free information line (anytime):
Call (877)472-5390 and use the code to hear about the guarantee:
Easy Exit Listing Guarantee Code: 7003
$5000 Buyer Guarantee, Code: 7004
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