Charging the Buyer a Fee to Process the Short Sale Listing

My broker just came to me with a question and I didn't know the answer, so I'm looking for some guidance.  We have an agent in the office who is charging the BUYER of her short sale properties a flat fee at the closing to process the short sale.  This fee is disclosed in the contract as well as the HUD.  Is this OK?  Legally speaking?  Does anyone else do anything like this?


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I think charging is fine as long as it is disclosed up front......

I am SLIGHTLY biased as we do short sale processing and negotiations for agents, NO CHARGE to the agents, buyer or Seller as long as you close with us.

I think charging Buyers is actually a dangerous practice for your Seller, will turn off many many Buyers and only encourage lowball offers in my opinion.

I am not an agent, BUT, if you were charging me or my client money to negotiate, you can bet your booty I would have them go in way low and EXPECT great things from you as a negotiator.....

Just my 2 cents.....

We would be interested in talking to you about your companies negotiation services.  We are in Idaho.  Just curious, do you then make your fee from the closing settlement fee charged to Buyer and Seller? My email is  Thank you for corresponding direct.

I do this as well, but I have the buyer pay my com,mission, not a fee. However, in my state of California, a certain disclosure must be given to the buyer in certain font and wording letting them know that commissions are negotiable and that they do not have to agree to the terms.

Here's the logic as to why we did this. I have a listing agreement in which the seller's foreclosing lender only pays a portion of the contractual commission. That difference is now a seller expense. Like every other seller expense that the foreclosing lender will not pay, we throw that cost to the buyer.

I don't know how fees work between a principal and broker in which there is no relationship between the two parties.

In my experience, charging the BUYER is the most common way a 3rd party collects its fee.  Not going to share my views on this, but here is the reason why SSSN does not allow 3rd parties to be used for our assignments -

This is happening in So Cal frequently. I personally am against this, Not fair to the buyer. If the agent cannot handle their own short sale files they should not take them. If they want that, they should have to pay for it themselves. It is however legal per our CAR attorney's.

The CA DRE has audited agents who are now giving up their license due to making more than stipulated in the Listing Agreement and a few others reasons.

Hi Patti, would like to hear more about that. Where did you find this information?

i friended you so we can msg

can you send this to me as well. My e-mail is   If you want, since you are in the same state as me, I can send you the disclosure we use to collect commissions from the  buyer. 

What you state make sense. If they have a listing agreement for certain number and they collect more than that number, then they violated their listing agreement.

Now that is an interesting point. 



My point exactly.  If the listing agent doesn't want to take the time to do the work, then the listing office needs to pay the fees.


Lina Sarkissians

I don't believe in this....I don't charge the buyer or the buyer's me, I see it as a cost of don't charge the buyer fees for your other costs of business associated with that  advertising, broker split, etc.....why this fee?

  And if I am the buyer's agent....I didn't ask that you use a service to handle  your short sale....that was the listing agent's choice so why should I or the buyer help pay for it....and I am the one bringing the buyer to your listings,so you are basically charging the buyer's agent or the buyer to get your property sold.....HUH?????????????????




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