Brokers being Fined for Adding on Fees

I don’t know if any of you read the article in the Union Tribune this Sunday about how the HUD is cracking down on what realtors charge for extra.  The rule behind this is that if you are being paid a commission and that is negotiated with the seller that is all you should be paid.  They (HUD) are finding that a lot of realtor tack on extra fees above and beyond their real estate commission.  If the fees are for services that should be done to close the deal the HUD feels their is no reason the client should be paying more.  So when an agent tacks on a fee for a transaction cordinator or signage or advertising any of these fees the HUD could fine the broker for gauge their client.

They feel that advertising, paperwork, adminstrative, puting the sign on the property, and flyers need to be done in order to sale the home and should be included in the commission or flat rate negotiated at the beginning.  When I first started real estate in the Bay Area I saw a lot of agents charging their clients for things I felt were all part of the transaction.  It will be curious to see if brokers abide by the new law.

Any thoughts…..

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