The listing agent refuses to submit the buyer’s offer to the seller unless the buyer pays a $100 “processing fee.”
May the listing agent require a processing fee as a condition of submitting an offer?
A listing agent is required by the Commissioner’s Rules to “promptly submit to the . . . client all offers to purchase or lease the listed property.” See A.A.C. R4-28-801(B). The listing agent may not condition submitting of an offer on the buyer or buyer’s agent paying a “processing fee.”
Note: The practice of collecting a processing fee is likely a RESPA violation as well. See Busby v. JRHBW Realty, Inc. d/b/a RealtySouth, 642 F.Supp.2d 1283 (11th Cir. 2009).
Arizona REALTOR® Magazine – March 2012; updated December 2015