Do I have to pay a disposition, processing, and transactional fee to the listing agent of the home I am buying?

I am purchasing a foreclosed home. The listing agent has sent me a form stating that I have to pay at settlement a $395.00 disposition, processing, and transactional cost associated with this purchase. In the event that the seller (Fannie Mae) does not allow this fee to be placed on the HUD I will be responsible for the fee at closing be personal check or money order within 1 business day of closing to the listing agent. Is this legal, why should I be responsible to pay the listing agent anything?

Asked on July 2, 2009 under Real Estate Law, Ohio

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I think you need to talk to an attorney about this;  I think it's usually a good idea to have a lawyer representing you in any real estate transaction, because mistakes can be easy to make, and very expensive to fix.  One place to find a qualified lawyer is our website, http://attorneypages.com

If the fee isn't properly on the HUD-1, I would automatically have to question whether or not it's proper for the agent to charge it to you.  I can't answer the question because I don't have all of the facts of this transaction, starting with the wording of the form that was sent out.

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I think you need to talk to an attorney about this;  I think it's usually a good idea to have a lawyer representing you in any real estate transaction, because mistakes can be easy to make, and very expensive to fix.  One place to find a qualified lawyer is our website, http://attorneypages.com

If the fee isn't properly on the HUD-1, I would automatically have to question whether or not it's proper for the agent to charge it to you.  I can't answer the question because I don't have all of the facts of this transaction, starting with the wording of the form that was sent out.


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