Extra fee charged to buyer by listing co
There is a fee that has been gaining popularity through the years that I feel has always been wrong to charge to a buyer.TheListing co states that the BUYER will be required to pay this fee of $250 (for instance)for their work preparing closing docs.Last time I checked..the listing co does NOTHING "buyer related".At most they may request the payoff for the SELLER'S mortgage.The selling realtor or more likely the LENDER will handle all buyer related items for closing.
I have tried to research this..a few consumers have challenged it through the years.In 2002 some judge(no idea what state)ruled against ..saying since the fee was NOT paid to a third party,it wasn't a violation of respa.It seems to me it has to be a violation of respa since the buyer has NO option but has to pay a fee for a service they do NOT receive for work actually being done by other people hired by the buyer..so they essentially pay twice.
The buyer has selected his realtor and his lender and accepted the fees relative to their work..he has NOT entered into a contract with the listing company..he just gets stuck with them by virtue of the home he selects.
I think the listing co needs to "make do" on their commmission split and not keep adding junk fees. Since they have already been adding that same fee to their listing agreements ...that means both seller and buyer pay the listing co an additional $250 per side for no real reason other than the listing co says they should.
Our local Bd Of Realtors will entertain the idea of putting a stop to it if I can provide anything on which they can hang their hat about it being legally "questionable".
Any help out there for me?
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