Is it common practice for realtors to charge fees other than commission?

Question

I think my friend's mother is getting scammed. Her realtor made sign a contract saying that even if she doesn't sell the house she has to pay the realtor. All of these weird fees keep being tacked on by the realtor, and when my friend requests information (from the now infamous realtor) he is cheerfully ignored. She (my pal's mom) is a total sweetheart, unable to think ill of anyone and I'm afraid it's going to get her screwed in the long run. Is there a governing body of realtors who can answer all the questions we have, suggest a local realtor in good standing and let us know what is and is not standard industry practice?

Answer 1

1.  No Realtor "made" your friend's mother do anything unless you are prepared to tell us that she held a gun to her head or otherwise, threatened her with bodily harm.

So, don't start out your story by exaggerating the situation.

A Realtor CAN legally charge any fee they want on top of a commission, as long as it's disclosed in the contract.  

However, is it COMMON to do so?  Absolutely not.

But being uncommon does not equal illegal or unethical.

You cannot file a complaint because you are not a party to the transaction.  

It's none of your business.

Answer 2

The first part means that he listing is exclusive - it keeps folks from having a realtor doing all the work, but then selling the house to someone who comes through without paying the commission.  At the end of the exclusivity period, your friend's mother can opt out of the contract and find another agent.

Most realtors and agents belong to a state Association of Realtors - the Association should be able to provide your friend with explanations and they also have dispute resolution procedures one can follow if they feel that the agent has not been ethical.

It may be that the realtor believes he/she is your friend's mother's agent (which they are) and will only respond to her.

Answer 3

The contract exists between the agent & the mother, so the agent shouldn’t discuss terms of that contract with anyone else.

As for fees, it wouldn’t shock me in the least if these fees weren’t about covering the agent’s costs. Ideally an agent has enough faith in himself to work on commission only, believing he can sell the property.  However, while it’s not common, it’s not unheard of for an agent to expect some of their costs to be recouped. After all, they are spending money trying to sell this house.

The mother’s first move should be to call the agent’s managing broker to discuss any concerns she might have. I do not suggest that your friend call as she is not part of the legal contract. If the mother doesn’t get a reasonable explanation there, she can contact the city-area board of realtors and above that the state level. You can find both by Googling.  

Answer 4

She can call her states real estate board, or the agents broker.

There should not be any additional charges and there should not be a commission or any penalty at all for a non-sale.

The person with the contract has to do the inquiries, no one is authorized to do so.