Resale Closing Costs and MF?

[snowbunny]

I fully understand that Snowbunny. But you know, you wouldn't have gotten that impression from our phone conversation.

Right...just have to remember that TTS are realtors after all, and trying to get the best deal for the sellers who have listed with them, so making such provisions seem set in stone, e.g., reimbursing the seller for their MFs, is going to be par for the course. I don't know whether that is counted as part of the sale price for which TTS obtains a commission but it would not surprise me at all if it is.

I'm buying through TTS so that is not a slam on them, but like ALL real estate transactions - caveat emptor.

 

[robinb]

I don't know whether that is counted as part of the sale price for which TTS obtains a commission but it would not surprise me at all if it is.

It is not.

 

[JimMIA]

Right...just have to remember that TTS are realtors after all, and trying to get the best deal for the sellers who have listed with them...

Actually, that's incorrect. TTS acts as a "transaction broker," which means they represent both parties in the transaction. They're not on one side or the other; they help both parties.

And they don't get any commission on maintenance fees!

 

[snowbunny]

Actually, that's incorrect. TTS acts as a "transaction broker," which means they represent both parties in the transaction. They're not on one side or the other; they help both parties.

Aside from a bit of profit on the closing fees, revenue is earned as a % commission of the sale price, correct? If that is the case, there is a built-in fiduciary incentive weighted toward the seller.

And they don't get any commission on maintenance fees!

That's why I said 'I don't know,' so thank you and Robin for that clarification.

 

[JimMIA]

Aside from a bit of profit on the closing fees, revenue is earned as a % commission of the sale price, correct?.

Usually, the closing agent and the realtor are two separate companies. That may actually be a legal requirement -- I'm not sure. I know whenever I've bought real estate in Florida, including buying DVC through TTS, the closings have not been done by the realtor. They've been done either by an attorney, or by a closing company.

If that is the case, there is a built-in fiduciary incentive weighted toward the seller

Nope, not in Florida. In Florida, the default relationship is "transaction broker," unless there is a specific contract between the realtor and one of the parties changing the relationship. By definition, transaction brokers only facilitate the transaction by assisting both sides. They specifically (set forth in statute) have no fiduciary responsibility to either side.