Has anyone encountered a fee imposed by a Realtor to a borrower for retention of copies? I am being told a Realtor is charging anywhere from $95 to $300 for retaining copies of the sales agreement for the buyer. If anyone else is seeing this, how are you handling it on the LE and CD? I personally do not believe it belongs on either as it really has no bearing on settlement. I would like to hear what others think.

Are they paying this at or before closing?

I haven't heard of thus before.... they should get a new Realtor!!

This is a junk fee that has been in our area for years.

It goes in Section H along with the Realtor Commissions.

It is to be paid at closing per the Realtor involved.

Not sure what to call it on the closing disclosure to be honest.

Call it whatever they call it. I guess if something is paid through closing, how could you ever leave it off the CD and hope the transaction would balance.

Realtors in our area charge an administrative fee that can be as high as $495.00. Because it is normal an customary for our area we feel we are acting in good faith to disclose this charge. In most cases it does apply although the dollar amount varies. This is an agreement between buyer and agent ( not a part of the contract of sale). We have been putting in Section H; however we also have been selecting (optional), as this is not a lender charge and it is a negotiable item between buyer and realtor.

IYO, is the "optional" a correct setting for this type of fee?

No. It is not a service that should be labeled optional. Only fees paid for separate insurance, warranty, guarantee, or event-coverage products are labeled as such.

1026.37(g)(4)(ii) The parenthetical description “(optional)” shall appear at the end of the label for items disclosing any premiums paid for separate insurance, warranty, guarantee, or event-coverage products.

Thank you Randy.