How many times have you viewed a listing on the MLS and seen: transaction, compliance, storage, processing or statutory compliance fees? These fees range any where from $195 to believe it or not $795. No matter how you say it or print it, there is no way around it, they are a violation of RESPA. I have heard all kinds of excuses: They are sanctioned by NAR. My attorney says it is legal. FR hotline says it’s OK. Or even better: Everyone else is charging it (reminds me when I was little and the excuse was everyone else is doing it).
Sooner or later, we will begin to get audited by HUD for RESPA violations. It is just a matter of time. Already many Buyers are complaining about paying the fee, some have even sued the real estate company and won. It is just the beginning. There are several court cases that have set a precedent and the Buyers have won their case, along with their legal fees being paid. So save yourself the aggravation and discontinue the practice and you might just save yourself money in the long run. No matter what you call it, remember it is a violation of RESPA.
Look to the right and you will see the Featured Link of The Week – it’s a question and answer regarding these fees and it’s available for download.
Until next Monday…