HUD Letter Allows Percentage Plus Flat Fee Commission

A real estate broker’s commission may be determined using a percentage of the sales price, a flat fee, or a combination of both, according to a recent letter from HUD’s General Counsel Helen Kanovsky.  The January 22 letter clarifies the distinction between using a formula to calculate a legitimate commission, as opposed to an unearned fee that violates RESPA.  Under RESPA, a real estate broker cannot charge a fee if no, nominal, or duplicative work is done.

Ream more here:

 http://www.ccarlive.com/2010/02/26/hud-letter-allows-percentage-plus-flat-fee-commission/

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