Should I pay the negotiator fee?
Replies to This Discussion
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Permalink Reply by Gabe on
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understand. escrowed closed so I can get my keys, but since this the whole processing fees were outside of escrow they cant hold my keys from me. I still think its fightable and I signed and I know that but i Have in writing by the agent that the money was for my down payment. holding my ground as much as possibly, and if it doesnt work it doesnt work. Cant blame a guy for wanting to save $800 at least.
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Permalink Reply by Jeff Payne on
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Keep us informed. Your situation happens all too often in my area.....
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Well got the keys, discussed the issue with the supervising broker, about the whole situation, he seemed to understand. Told me that the remaining $500 ( the paper I signed says 1800 but they are saying 1500 total.) will have to be paid no matter what, but he wasn't directly saying I had too. So I got my keys and no questions were asked.
I know there might be a possibility they might take it to small claims but I really wouldn't find it logical over such a small fee.
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Permalink Reply by Smitty on
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Whomever represented you should take that $500 out of their commission to pay the negotiator.
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I totally agree, like I said before I felt like it was not properly disclosed to me, and since it was outside of escrow they can't stop me from getting my keys (they tried strong arming me to pay it) but no I held my ground because I felt it wasn't right, I was told so many weeks later that oh by the way that $1000 doesn't go towards your down payment oh and by the way blah blah. In a business you can't just throw money around and handle it that way. This was totally unprofessional and they lost with this one. I will recommend no one to them, on another note, I got a condo! First step into my investment plans
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Permalink Reply by Rochelle Castro on
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Gabe: I am sorry that you are having this experience. And it also appalling to me, that no one indicated to you, that if you feel the agent did not do his/her job, every agent has a Broker that you can call. In my office, many times the agent had to pay out of the commission for similar mistakes. In California, you can charge the buyer for negotiating a short sale, however that needs to be disclosed on the MLS, by the listing agent. This is one of the things I look for, when searching for property for my buyers. I disclose, and they decide if they want to go see that property.
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Thanks Rochelle, That was my main point when I talked to the supervising broker. He even admitted that when the property came to his attention he thought it "was a lousy way of doing it, but If He (Gabe) wanted to proceed with it thats the way it will be done." then I stopped him right there and asked well when you had this property come to your attention, who emailed me\ called me about this? he had no response to that. So I was shown the house even after they all knew that. Also was told to me that I had two parking spaces, they just never specified which ones and never did, I had them confirm that yesterday, turns out, I have none. Just my garage, awesome haha. not the biggest deal, I just cant beleive a company like this cant get their facts straight.
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Permalink Reply by Bryant Tutas on
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in the newsletter today
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In reality, you the buyer is not negotating the short sale; nor is the short sale negotiated on your behalf. When the agent took the listing and decided to do a short sale he/she should have either have the ability to negotiate the short sale directly or had in place an agreement with a third party to do same.
Unless you signed an addendum or this was disclosed to you in the purchase and sale contract then in my opinion you are not obligated to pay it. Visit: www.FLshortsalePros.com for some more FAQ's
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I was never disclosed up front but later on in the transation I made a mistake signing a paper that says that buyer is responsible for paying for the negotiator. my mistake. But are the rules and guidelines the same in florida as california? I live in CA.
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Permalink Reply by Satar Naghshineh on
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I am a broker in CA and a master of making buyers pay for negotiation fees! ;)
First off, if this is on the HUD as a commission, it is illegal unless a certain type of disclosure was given with respect to wording and font.
Outside of the HUD, you will need a separate agreement between yourself and this negotiation company. However, this company CANNOT collect any fees upfront unless they are a lawyer and have entered into a lawyer/client relationship with you. Since you are the buyer, I don't even see how this is possible as they are not able to negotiate a debt settlement in your behalf. Also you were right, they cannot hold up this transaction because of your refusal to pay.
Maybe for kicks, you might want to file a small claims for your $1000 if this company didn't have a verbal or written agreement with you AND they were performing a service for the seller and not you. Chances are they were doing a service for the seller (debt settlement) and the listing broker (approval of debt settlement based on a purchase contract between the two brokerages).
All in all, I would have to see how this whole transaction was setup to better help you. Signed disclosure is key. In fact, my personal disclosure says the following:
"The buyers, <buyer names>, is/are aware that the seller is negotiating with the lender(s) on the property located at <address> to reduce their respective loan balances by an amount sufficient to permit the proceeds from the sale of the property to pay the existing loan balances and other seller allowable expenses on the property. The buyer is aware that there may be expenses, normally paid for by the seller, which the lender(s) will not pay, and that may have to be paid by the buyer in order to complete this transaction."
It goes on to say that you will be responsible to compensate the brokerage for x dollars and that real estate commissions are negotiable between buyer and broker.
I had to have this created because I was losing too much money in short sales.
Congrats on the purchase of your condo. I am in Orange County, CA and in my area, you can't buy a dog house for 100k! ;)
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First of all, the fact that you mentioned he is your friend, speaks volumes on how much you value that friendship.You also mentioned that he is just starting out?So I can only guess that he is being coach and advised by his/her Broker of record.
And the way he handled the "fee" was on the advice of that Broker...That agent needs to get a new Mentor,if not Broker. Friendship is far more valuable than loosing your friend over $1000.00. However if he does not take the consol of a friend, and the experience that you both have just experienced, then his value of your friendship maynot be as high as yours.
It is a tough situation...The Bible say's take the issue to your friend work it out, friendship is far more valuable than $$.If he sees his mistake, and corrects it, it is all good. His association speaks volumes, Have the two of you sat down to speak with his Mentor/Broker?
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