Whether it’s your first home or an upgrade, buying a house is a big purchase, often requiring a large amount of money up front. In addition to the down payment, the buyer and seller incur settlement costs, often averaging about $10,000, sometimes more.
Most of these fee’s such as title search and insurance are necessary and beneficial to the buyers. However, it has recently come in to light that many buyers and sellers are being charged an unnecessary administrative fee, known as a "Junk Fee".
These junk fee’s show up on the HUD 1 sheet in the 700 or 1300 series as an administrative fee, administrative commission, broker commission, broker fee, and other similar names.
In Augenstein v. Coldwell Banker, Case No. 2:10-cv-191, plaintiffs and a class of buyers and sellers who were charged a $199 junk fee attest this fee violates the federal consumer protection statute, known as RESPA, the Real Estate Settlement Procedures Act and would like a refund.
Should the Court Rule in favor if the Plaintiff’s Motion to Certify a Class Action and Grant Summary Judgment, everyone charged this junk fee will be entitled to a refund.