Advance Fee Agreement Real Estate

Before deducting any costs from the fiduciary account, the broker must provide the client with a statement clarifying how the advance charges and their amount are to be used. Amounts can only be withdrawn for the benefit of the broker if they have actually been issued to the client or 5 days after the sending of verified accounts to the client. If the property on the list is not sold within the period indicated in the broker`s contract or within 18 months of the date of the contract, whichever is shorter, all funds held by the broker in the trust account are refunded to the client, accompanied by a final statement of some or all of the funds spent by the broker. Definition: a commission or partial payment received by a broker before the closing of the real estate service. The broker`s fee for the transaction is less than the amount of the buyer`s bona fide deposit held in the broker`s trust account. The broker deducts, without the authorization of the buyer and the seller, the amount of his brokerage fees before the conclusion of the transaction. The broker asserts that the funds belong to the seller and that the deduction is allowed under the terms of the seller`s offer agreement. Bottom Line: Avoid early fees. You are best served with a good purchase contract (brokerage contract) if you want contractual insurance that you will be paid….