Market Center Fees (U.S. and Canada)

Regardless of the title any fee is given, all fees related to a transaction charged to a buyer/seller are subject to royalty. The Market Center does not have the authority to disregard royalty on any commission or fees collected on a transaction. 

If an associate charges any fee to the buyer/seller and calls it a “processing fee,” “listing fee,” "transaction fee" or any other kind of fee, this is considered a commission to the associate. This must be recorded in the transaction as a bonus, which is a fee over and above the real estate commission. Per the P & G, royalty is never waived and, therefore, must be paid on all fees that pertain to a transaction.

Example:

The Market Center collects a transaction fee of $300 from the agent on each transaction and the agent passes the fee on to the customer.

• The transaction fee collected from the customer is posted as a bonus in the transaction.
• Royalty in the amount of $18.00 will be assessed (unless the agent is capped).
• The transaction fee due to the office is entered as a deduction.
• The Market Center will need to set a policy of whether the full amount of $300 is deducted or if the balance of $282.00 after royalty is deducted.