Transaction or Administrative Fees also known as Doc Fees, or BAC fees…are back in the news. Sue Sanders, NVAR General Counsel has issued the following Opinion Statement, “Risk to the Unwary” concerning these fees. She reminds us that RESPA only allows fees for services, “actually performed.” Prudential, Americana Group, REALTORS® agrees.
As noted in the Prudential, Americana Group, REALTORS® Policies and Procedure Manual, p. 44, the “Broker Administrative Commission” is a part of the commission. The Americana BAC invoice is located here.
So…the $350 question is WHAT IS IT? It is commission. Like all commissions it is not required. It is separately invoiced by Americana for accounting purposes, but it is simply a part of the listing or selling commission. It is not a fee for additional services. The BAC is a portion of the commission for the real estate services provided by Americana for a buyer or seller. It is for services actually performed and is the result of the buyer and seller engaging Americana. The BAC is separated from the rest of the commission, such as the listing or buyer broker, and is earmarked for the broker’s accounting purposes. Federal law states a real estate broker’s fees may only be charged if the broker is engaged independently and the fees are reasonable and customary. See HUD Handbook 4155.1 for additional information.
Americana has created an information sheet to be shared with your clients which is located as a website [web site link] on the bottom of the BAC invoice, it is also located at the end of the BAC on Ameriforms.
Nevada Residential Real Property Law 
December 29, 2009 at 10:15 am
When does this go into effect? Does this mean that the Banks have to waive the deficiency?
Government announces short sales guidelines
By Gina Hannah
December 02, 2009, 1:06PM
From the Associated Press –
The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly. In a short sale a buyer pays a portion of the mortgage amount on a home at risk of foreclosure.
To qualify under these new guidelines:
The property must be the home owner’s principal residence.
The home owner must be delinquent on the mortgage or close to defaulting.
The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.
Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.
Borrowers who complete a short sale under the program must be “fully released” from future liability for the debt, according to the guidelines.
February 26, 2010 at 4:39 pm
[…] discussed in my December 24, 2009 Doc Fee Versus Commission I shared that the “Broker Administrative Commission” is a commission, and not merely a fee. […]
January 28, 2014 at 7:17 pm
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