Comments on: Are “Admin Fees” Legal? http://faarforum.com/2009/05/are-admin-fees-legal/ Fredericksburg Area Association of REALTORS® Fri, 04 May 2012 21:02:19 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Kate Elim http://faarforum.com/2009/05/are-admin-fees-legal/comment-page-1/#comment-177 Kate Elim Tue, 12 May 2009 17:23:24 +0000 http://faarforum.com/2009/05/are-admin-fees-legal/#comment-177 Yes, the NVAR listing agreement does contain that language. I would still suggest that sellers include verbage to ensure that additional (undisclosed at time of listing agreement) fees must be agreed upon by both parties. That would stop a company from tacking on something else at the end. Yes, the NVAR listing agreement does contain that language. I would still suggest that sellers include verbage to ensure that additional (undisclosed at time of listing agreement) fees must be agreed upon by both parties. That would stop a company from tacking on something else at the end.

]]> By: Suzanne Brady http://faarforum.com/2009/05/are-admin-fees-legal/comment-page-1/#comment-176 Suzanne Brady Tue, 12 May 2009 17:12:32 +0000 http://faarforum.com/2009/05/are-admin-fees-legal/#comment-176 I worked for one company that charged an admin fee. It thought it was so totally wrong that I paid it myself. The NVAR exclusive right to sell agreement does have a space in which a brokerage company can warn sellers that they will be gouged an extra fee at closing. However, agents who do not get a buyer agency agreement with the admin fee specifically written in are setting themselves up for a nice lawsuit. Another good reason to get an agency agreement. I worked for one company that charged an admin fee. It thought it was so totally wrong that I paid it myself.

The NVAR exclusive right to sell agreement does have a space in which a brokerage company can warn sellers that they will be gouged an extra fee at closing. However, agents who do not get a buyer agency agreement with the admin fee specifically written in are setting themselves up for a nice lawsuit. Another good reason to get an agency agreement.

]]> By: Kate Elim http://faarforum.com/2009/05/are-admin-fees-legal/comment-page-1/#comment-175 Kate Elim Tue, 12 May 2009 14:10:18 +0000 http://faarforum.com/2009/05/are-admin-fees-legal/#comment-175 Some of these companies began charging fees well before the market headed south and profits became smaller. Perhaps the belief was that when prices were rocketing upwards sellers were realizing such large equity gains that they would not mind paying a "fee" on top of the commission. Clients could specify "no additional fees will be charged unless agreed upon by both parties" in any buyer or listing agreement they sign. Some of these companies began charging fees well before the market headed south and profits became smaller. Perhaps the belief was that when prices were rocketing upwards sellers were realizing such large equity gains that they would not mind paying a “fee” on top of the commission. Clients could specify “no additional fees will be charged unless agreed upon by both parties” in any buyer or listing agreement they sign.

]]>