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Realtors collecting fees for negotiating short sales.

Posted by Wendy Rosenberg on June 3, 2012 at 10:58am in Short Sale Discussions

I have previously seen legislation stating that a Realtor could not collect a fee for negotiating a short sale, nor could he collect extra commission for handling the short sale. 

Friday, I attended a seminar where a local Real Estate Attorney said that a Realtor can get paid and can earn extra commission.  Can anyone tell me where I can find this ruling?

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Replies

  • Chad Ski June 17, 2012 at 9:05am
    • in colorado, there are 5 to 6 realtors call it a short sale negotiation fee and put into mls
  • Gail Oleaga June 16, 2012 at 5:38am

    Wendy,

    Last week I spoke with the FTC legal department regarding this and the answer is yes if:

    You are a Realtor in good standing and you are involved with the short sale.

    However, my Broker will not allow us to collect the fee as he is fearful that the Agents may abuse this and give the Agency a bad name, so, I am unable to do so.

    This ruling changed July 2011. Feel free to go to the FTC website or call to verify this and then clear it with your Broker too.

    Hope this helps!

    Gail

  • Terry Maness June 12, 2012 at 5:20am
    Sorry Wendy. If I were in Florida, I would like to answer the question asked. I hope you found where by now and if so, please if you can share with others so they too can have that info I am sure they would appreciate it very much. Take care.
  • Josh M. Boggs June 11, 2012 at 7:59am

    In Texas,

    We are allowed to bill for an additional fee and we do.  We bill up front and it gets paid to a separate entity since we have it split up as short sale processing and listing are 2 separate jobs.  Our promulgated forms do not mention any of the scope of short sales so that is has been approved for us to charge up front additional compensation for that service. 

    Best of luck.

    Josh

  • Liz Kenneally June 10, 2012 at 7:30am

    Please read the following from Realtors.org :

    http://voicesofrealestate.blogs.realtor.org/2012/06/01/supreme-cour...

  • Erik Berry June 10, 2012 at 5:00am

    In California is a no no go to dre website and look at "short sale fraud"

  • Duretta Lorang June 10, 2012 at 3:56am

    Cindy mentioned being compensated by having a "buyer's facilitating fee"    How does that get through the bank's short sale system with approval?  Thanks

    • Joseph Alfe > Duretta Lorang June 10, 2012 at 11:33am

      Simple: It does not come out of the sellers proceeds. Our fee is always on the buy side and approved every time by the sellers lender at closing.  Now that both Fannie and Freddie purchase guidelines specifically state that buyers may pay third party short sale fees, it is now considered "Reasonable and customary."

      The key here is proper disclosure to buyers BEFORE the offer is executed, and a signed fee agreement.  A good part of my business now is consulting to brokers and negotiators about how to set up  a separate or in house negotiating service and how to get paid doing it. I don't know how others do it but I charge 3% and get it 99% of the time.

      www.josephalfe.com

      www.ssprocessors.com

      • Trong Dang > Joseph Alfe June 17, 2012 at 5:46am

        Joseph,

        I am interested in finding out more about how to set up a in-house negotiation services, how to get paid doing it and your fees for your advice.  I have sent you a friend request.

  • Stephanie Hart CA 310-930-2342 June 10, 2012 at 3:24am
    Interesting thread... I also agree... Short sales usually fail due to the agent/negotiator! Kevin those are some amazing close times. My fastest to date W/BAC was 45 days but I appreciate a fantastically prompt negotiator on that one. Which is not usually the case! I won't "negotiate shorts" for fellow agents in my office but I will co-list and split the listing side evenly. Then if they rep the buyers it's an overall split since I end up handling most of it. 6%... I always try for more, have yet to get it. Never add extra fees?
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