A title clerk recently told me about a large real estate company who, at closing, tried to sneak in a $199 fee to their buyer for “processing” fees. The buyer’s attorney refused to have it paid, and had the charge removed from the buyer’s expenses. I have been told of other similar stories where buyers get surprised at closing with a similar nominal processing fee, and it goes rather unnoticed, especially when compared to the size of other closing fees. Why would a real estate company do this? Heck, $199 doesn’t seem like alot. But when you multiply 5,000 annual buyer closings x $199, it’s a million dollars to their bottom line, potentially all “new found” profit. Wow. That’s why they do it.
My suggestion for all buyers and sellers is:
1. Ask your agent to disclose all fees, in writing. Email is great for this!
2. Get a copy of the settlement statement the day before closing. This statement outlines all charges.
3. Re-examine the statement at closing, as sometimes adjustments are made just before closing. This statement is also referred to as the HUD-1 Statement.
Other fees to look for are mortgage company fees. I have personally witnessed unscrupulous mortgage companies sneak in extra fees. Question everything you do not understand. Closing day can be overwhelming on many levels, but watch your expense ledger!
Posted by mikeelliott1 
