cateyemm
Twins!
Member since 7/10 8027 total posts
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broker's fee in cash?
My broker wants us to give him the fee in cash (actually it's a "transfer fee" since I'm moving within the complex). Something about "splitting up the fee" with someone else? Would there be any good reason for this?
Im going to give him a check no matter what, I'm already peeved enough about getting jerked around on this transfer fee but we are up against a wall.
Message edited 7/6/2012 6:28:26 PM.
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Re: broker's fee in cash?
In my mind there is never a good reason to pay anyone in cash. I also always make the check out to the company rather than the person. It's mostly because I like to have proof that I paid, just in case.
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Re: broker's fee in cash?
I always ask for the broker's fee in cash, or in a bank check, when I do a rental. It's my broker's policy not to accept personal checks (unless it's a rare exception). And that is the norm in the real estate industry, from what I've seen.
With a personal check, there's no guarantee that it will clear. If it ultimately doesn't clear, then we really have no recourse to collect the fee. The tenant pays the fee, but real estate agents usually don't have contract with tenants. They pay the fee upfront, before they sign the lease, because once a tenant moves in, it's really difficult for us to collect the fee.
I understand that it's a lot of cash to carry around, which is why we also take bank checks.
As far as proof that you paid, I always write up a detailed receipt showing who paid what and have everyone sign off on it. I give copies of that receipt to the landlord, tenant, agents.
It is true that cash is easiest for the agents, because there are usually two agents involved (one who has the rental listing, the other who brings the tenant), so they need to spit up the fee. Cash is easiest for that reason, as opposed to one check. But of course you could always issue a separate check to each real estate company involved.
If you are dealing with a reputable real estate agency, and they are not asking for the money until you sign the lease, and you get a receipt that you paid, I don't think it should be cause for concern. Cash is always preferrd, but if you offer to pay with a bank check or certified check, and that doesn't suffice, that would raise a red flag to me.
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
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Beth
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Re: broker's fee in cash?
when I rented my current apartment- I paid the brokers fee in cash
I don't really do rentals- but the 2 I have done I had both sides so no one to split with and I asked for a bank check
my broker wouldn't take a personal check
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cateyemm
Twins!
Member since 7/10 8027 total posts
Name:
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Re: broker's fee in cash?
Thanks, I felt much more at ease reading your responses and ended up giving him cash. He gave me a detailed receipt (in which he didnt want to originally put the amount but ended up doing it after I insisted!)
eta. he said he had to split it with the management company and another broker
Message edited 7/8/2012 5:34:52 PM.
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