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| RESPA Litigation JUNK FEES Have you bought or sold a home in the last year using a real estate broker? Does the HUD-1 Settlement Statement for your transaction show that you were charged an administrative fee, administrative commission, broker commission, or broker fee in addition to the percentage commission? This kind of fee is usually listed separately and is in addition to the percentage commission, and it is a specific dollar amount, such as $199, $300, $400, etc. If you look on the second page of the Settlement Statement, it is usually found in the 700s section toward the top, however, you may also find it in the 1300s section on the lower portion. 
This kind of fee can be also be listed by names such as additional commission, admin fee, administration fee, broker admin fee, broker administration fee, broker’s admin. fee, broker’s administration commission, broker’s bonus fee, broker commission fee, broker compliance fee, buyer’s additional realtor fee, commission, compliance fee, GARP fee, other sales agent charges, real estate admin fee, real estate broker admin fee, realtor admin fee, regulatory compliance fee, selling agent incentive fee, transaction fee, document retrieval fee (read the instructions from one local Re/Max company to title companies about how to charge the fee for storing documents which every title company already provides to buyers and sellers at closing. What is even more interesting is that they are charging this fee to buyers who are not represented by them!), and others. When no actual services are performed in return for the fee, there may be a violation of the Real Estate Settlement Procedures Act (RESPA) and are what we call Junk Fees. Augenstein v. Coldwell Banker, et. al. Case No. 2:10-cv-191 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION COLUMBUS, OHIO The Plaintiffs in this case are being represented by the legal team consisting of James A. Zitesman, Attorney at Law; Andrew List of Clark, Perdue & List; and Barry Hill of Anapol, Schwartz, Weiss, Cohan, Feldman & Smalley, P.C. The Plaintiffs have brought this case as putative representatives of the class of buyers and sellers of real estate that were charged a fee of $199 at closing by the Defendants, Coldwell Banker. The Plaintiffs have alleged that the fee being charged was unearned and therefore a violation of Section 8(b) of the Real Estate Settlement Procedures Act, known as RESPA, 12 U.S.C. § 2607. The District Court has issued two decisions thus far in the case. The first was denying the Defendant's Motion to Strike. Click here to read the decision. The second decision issued by the District Court was on the Motions of both parties for Summary Judgment. Click here to read the decision granting the Plaintiffs' Motion and denying the Defendant's Motion. The net result of the two decisions from the District Court is that fees charged to buyers and sellers in the course of the settlement (closing) of a real estate transaction which qualifies to be covered by RESPA must be in exchange for services actually performed. The issue is not what the fee is called, but rather what services were actually provided to the consumer. The next step in the case will be the court’s rulings on the plaintiffs’ motions to certify a class action and to grant summary judgment to the class, entitling everyone in it to a full refund. We are looking for people who were charged a junk fee If you were charged a junk fee by a real estate company or have questions about other fees on the HUD-1 Settlement Statement from your closing, and you are interested in exploring the possibility of becoming a lead plaintiff in a class action for refunds against the broker that charged the fee, we would like to hear from you. You should keep in mind that normally the agents do not like the fee any more than you do. The fees are usually not being shared with the agent, who will probably have to pay it if the customer does not. It simply puts the agents in a tough spot. Therefore, if you are a plaintiff, the case is against the company and not usually the agent. Click here to send Attorney Zitesman an email, or call James Zitesman at 614-799-9494. | |
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