Time running out on unearned Brokerage fees?

By Kenneth R. Harney / The Nation’s Housing
Sunday, May 10, 2009

WASHINGTON - A federal district court has handed down a ruling in a class action that could have a direct impact on the fees you pay to the real estate company at closings, whether as a buyer or seller.

The decision targets one of the most commonplace practices adopted by brokerage firms in recent years: charging consumers “admin,” “processing,” “ABC” and other mystery fees ranging from $150 to as much as $500 per transaction. The fees are tacked on top of regular commissions and sometimes come as last-minute surprises on settlement sheets.

Typically the charges are imposed by the brokerage company owners and go straight to their accounts, rather than being shared with sales agents. When pressed about why buyers or sellers should be hit with hundreds of dollars extra at closing when thousands of dollars of commissions are already being charged in the deal, some sales agents say, “it’s the broker’s policy - we don’t get any of this money.”

Finish reading this at: Boston Herald

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Brokerage fees, broker fees