Injunction Against Real Estate Commission

[MissV]

What is the name of your state (only U.S. law)? North Carolina

Our state's Real Estate Commission has determined that as of Oct 1 all real estate transactions must disclose the real estate broker's commission to the customer. Since this is not required of lenders, loan officers, attorneys or anyone else in the financial transaction, I think this is unfair. Some less than business minded clients think that we (the agent) may be making more money than we should, not realizing the bills we must pay (split commissions, errors and omissions insurance, rent, etc).

Can I file an injunction against the Commission to stop action until it is heard in a court of law? And if a court, should this be a district or state court? What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

 

[FlyingRon]

Unlikely.

Further, there's not really any point anyhow. The commission is almost always paid out of the settlement and hence will appear on the HUD-1 and not be a secret to the buyer. The seller already knows what the commission is, it's spelled out in their contract with the agent.

Attorneys and loan officers don't work on commission. What they are paid is clearly disclosed in their fees.

If you want to fight it, the best way is to ally yourself with the NAR or some other group representing the agents.

 

[MissV]

Injunction

Thanks for the response. Results are important but also the process. Again, the problem is disclosing information in advance that has no bearing, other than, in my opinion, to add more confusion.

You're right in that most info is disclosed on the HUD, however, in advance, all the client has is a Good Faith Estimate. And, as you also indicate, Buyers Agent isn't paying the commission. So this requirement from the Real Estate Commission is an unnecessary burden.

So is an injunction an action that I can file without an attorney?

 

[tranquility]

in my opinion, to add more confusion.

Confusion? Please. It's not confusing to know the cost of a real estate agent. Your problem is, that as people are more aware of the cost, the percentage will be negotiated down to a more reasonable level.

So this requirement from the Real Estate Commission is an unnecessary burden.

They ask for the number, you put it down. How is that a "burden" within the paperwork?

So is an injunction an action that I can file without an attorney?

While you can file it, you will lose. Completely, without a doubt and probably with sanctions for having no legal cause of action. Get ready to disclose, be prepared to have the eventual percentages be reduced when competition comes into the equation.

That the Real Estate Commission wants this is a reasonable step towards consumer protection. Your desire to legally prevent it will fail. As it should.