Junk Fee Charged To Buyers and Sellers of Residential Homes

Did you buy or sell residential real estate in the past year? Does the HUD 1 closing form for your transaction show that you were charged an administrative fee, administrative commission, broker commission, or broker fee?

This kind of fee is always listed separately and in addition to the percentage commission, and it is always a specific dollar amount, such as $199, $300, $400, etc. It usually shows up in the 700 series or 1300 series of line items on a HUD 1.

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 commission, buyer’s additional realtor fee, commission, compliance fee, 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, transfer fee, and others.

We have a class action underway to require junk fees to be refunded

Anapol Schwartz represents the plaintiffs in Augenstein v. Coldwell Banker, Case No. 2:10-cv-191, filed in the United States District Court for the Southern District of Ohio at Columbus. The plaintiffs and the class of buyers and sellers for whom the case is filed were charged a $199 junk fee and want a refund from Caldwell Banker. The case is based on a federal consumer protection statute known as the Real Estate Settlement Procedures Act (RESPA).

The District Court has issued two important decisions so far in the case. The first denies Caldwell Banker’s motion to dismiss .The second granted the plaintiffs’ motion for summary judgment, holding that the junk fee violates RESPA, because no services are performed in exchange for the junk fee.

The next step in the case will be the court’s rulingx 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 in any state by any real estate company, and you are interested in exploring the possibility of becoming a lead plaintiff in a class action for refunds in your state against the broker that charged the fee, we would like to hear from you. Click here to complete and submit an information form, or call Anapol Schwartz partner Barry Hill toll-free at 866.706.1477.

Because of differing rulings by some federal appeals courts, the law applicable to cases such as this is not uniform throughout the country, making this kind of lawsuit unfeasible in some states. We have attorneys licensed in Pennsylvania, New Jersey, Ohio, Arizona, and West Virginia, and we have attorneys with whom we can associate in any state.

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