A listing agent listed a property for a seller and the seller only agree to pay a commission to the buyer's agent. The listing added a 2% buyer's premium to be paid at closing which would be the listing agent's commission. I have seen many brokerage firms charging a buyer's premium on their listings on the MLS especially foreclosure properties. Is that a legal action?
It's not "illegal," the fees are whatever the parties contract for in writing and agreed to. I have never heard that an agent is going to list a property an not get paid; only buyer agent. That makes little logical sense. It could be that seller is an agent him/herself and is not seeking a commision for their listing, or they have some other relationship/pay structure with the bank on REO properties, and that buyer pays their own agent the 2% as a "premium" on top of the offer.
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