Sellers negotiator fee
We are a buyer and we found out sellers listing agent outsourced the negotiation to a third party. What's the typical fee these third party negotiators charge?
Thanks in advance
Replies to This Discussion
-
Permalink Reply by Smitty on
-
Again, this is where local law may trump federal law. At the beginning of this thread, Minna posted there is a $500 cap for negotiators in her state. Upon further investigation, the $500 cap is only if it's charged to the SELLER. This thread was started as "buyer paid" negotiation fees. In Connecticut that law doesn't apply to 3rd party negotiators who get their fee from other Realtors OR from the buyers. Thom is right. What is law in one state, may not be the same law in another. Florida clearly has different laws than Connecticut.
-
Permalink Reply by Stephen B. McWilliam on
-
I cannot comment on CT law other than all states were required to comply with the Federal SAFE Act which requires licensing for such conduct. Real estate licensees are NOT prohibited from processing "negotiating" short sale payoffs. However, absent specific licensing they most likely have exceeded their licensing authority and acted in violation of state law if they collected a separate and/or increased fee due to the short sale.
I reply to the request that I provide the specific law......below is the applicable Florida statute.....which is similar in most states.
(16) “Loan originator” means an individual who, directly or indirectly, solicits or offers to solicit a mortgage loan, accepts or offers to accept an application for a mortgage loan, negotiates or offers to negotiate the terms or conditions of a new or existing mortgage loan on behalf of a borrower or lender, or negotiates or offers to negotiate the sale of an existing mortgage loan to a noninstitutional investor for compensation or gain. The term includes an individual who is required to be licensed as a loan originator under the S.A.F.E. Mortgage Licensing Act of 2008. The term does not include an employee of a mortgage broker or mortgage lender whose duties are limited to physically handling a completed application form or transmitting a completed application form to a lender on behalf of a prospective borrower.
-
-
Stephen please post back where in the Safe Act does it prohibit from charging fees "at closing" by licensees or NON-licensees for short sale negotiation.
-
Permalink Reply by Paul Antonelli on
-
Very Well Stated
-
-
The SAFE Act defines negotiating the terms of mortgage, new or existing, to require licensing. A short sale payoff by definition is considered negotiating a mortgage loan and requires Licensing.
-
-
So obtaining a short sale payoff is in violation of the Safe Act? Are we about to get into the whole Realtor vs. Mortgage Loan originator debate? I mean this debate has been done to death. You're in Florida right Stephen? The Florida Association of Realtors seems to think Realtors are exempt from this.
http://www.floridarealtors.org/LegislativeCenter/TopInitiatives/upl...Now, I'm not in Florida, but quite a few on this site are.
Now in California, CAR also seems to think Realtor are exempt:"Q. I perform short sale negotiations as part of my listing agreement with the seller of the property and am not compensated for negotiating with the lender. I am paid for completing the sale per the listing agreement. Do I need a Mortgage Loan Originator License Endorsement on my DRE license?
A. No. The negotiation of a short sale transaction with a lender does not meet the definition of a mortgage loan origination, so a Mortgage Loan Originator License Endorsement would not be required."
http://www.dre.ca.gov/pdf_docs/SAFE_FAQ_filing_NMLS.pdfI'm not trying to split hairs, but we are not "originating" loans.
-
-
FAR does not support your stated suggestion. Again, real estate licensees may process a short sale payoff, as reckless as that may be; neither FAR nor CAR suggests that collecting a separate and/or increased fee due to the short sale processing is legally acceptable.
-
-
Again Stephen please cite me the law where FAR or CAR does not advocate a negotiation fee? You are talking about two separate things. 1) Realtors negotiation short sales in your opinion are violating the SAFE ACT and 2) If Realtors collect a separate fee you are questioning the legality of it.
PLEASE show me WHERE in either CAR or FAR that it is illegal, and cite me the law.
We can all interpret things differently, but law is law. Where is the law that states a negotiation fee is illegal?
-
Permalink Reply by Jeff Payne on
-
Stephen, with all due respect, you seem to be giving your opinion of this and have not cited anything to back up your position. In regards to FAR, are we even sure they know what a short sale is yet? :) They are always a day late.
-
Permalink Reply by Sheyenne Schultz on
-
Smitty and Thom I agree with you. Sorry Stephen, but you are confusing apples with oranges. I realize all of us on this forum are from 50 different states and the laws are different in each state. But WE as realtors are NOT violating any SAFE act or RESPA laws if done correctly and according to the rules and guidelines of the state we are in. I DO know this because my office is IN the office of a huge direct nationwide lender and the west coast CEO sits about 15 feet away from me in the next room, and I have made sure I am doing everything in my power to do things LEGALLY, and our attorneys have made sure of this too. I negotiate short sales for my clients as a listing agent and for tons of other agents as a negotiator under a separate brokered entity.and I assure you we are are following everything CAR has outlined for us to do. You're misinterpreting the fine line between realtor guidelines and loan originator guidelines or mortgage lender guidelines. This does NOT apply to short sale negotiations. HINT: There are tons of short sale negotiators and short sale negotiation companies in Florida too...I suppose now THEY are all breaking the law too.....right???
-
Permalink Reply by Cameron Novak on
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons