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 sellerIt 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.