Transaction Fees - What They Are And Why A Buyer Should NOT Pay Them
What are transaction fees?
Over the past few years most, of the larger real estate companies, as well as many smaller ones, began charging "transaction fees" to their clients as a means to generate additional revenue over and above commission income. This true in St Louis as well with many companies charging fees around $300 and even higher. At MORE we do NOT charge transaction fees to our clients or any other fee other than the normal commission we charge a seller.
Why A Buyer Should Not Pay Transaction Fees
At MORE, we feel that the sales commission we receive from the seller for selling their home is fair and adequate compensation therefore charging an additional fee over and above that to the seller, or buyer, is just not warranted. As a buyer client of ours, you will receive the best professional representation you can get in St Louis, with your agent looking out for your best interest from start to finish in the transaction, at absolutely no cost to you! Oh, that sounds good, but anyone can say they are the best, right? Well, how about this? We'll back it up with a no-strings attached, 100% satisfaction guarantee! That's right. If, at anytime you are not satisfied with the service your agent and our firm are providing you, you can cancel your buyers agency agreement with us and owe us nothing!
The Legality of Transaction Fees Has Been Questioned
The U.S. Department of Housing and Urban Development (HUD), which is charged with overseeing RESPA (Real Estate Settlement Procedures Act) has had a long standing position that transaction fees violate RESPA which prohibits "unearned fees". Well, in 2012, the real estate industry's concern over this was put to bed when the U.S. Supreme Court ruled that such unearned fees are not a violation of RESPA as long as they are not shared between two or more persons. So, as long as the real estate company doesn't share the fee, they are OK. Did you catch the part about an unearned fee" though? Hmm... Again, MORE does not and will not charge a transaction fee, period.