I am closing on a condo in two weeks. The managing agent is demanding a $250 "fed ex" fee, to reimburse them for sending the closing packages to the two attorneys (buyer and seller). I think this fee is absurd: each package weighed no more than 2 oz, and the packages were sent a more than a month prior to closing and were not so urgent that they had to be hand delivered. There is simply no way the... [more]
I am closing on a condo in two weeks. The managing agent is demanding a $250 "fed ex" fee, to reimburse them for sending the closing packages to the two attorneys (buyer and seller). I think this fee is absurd: each package weighed no more than 2 oz, and the packages were sent a more than a month prior to closing and were not so urgent that they had to be hand delivered. There is simply no way the managing agent paid $250 to ship the closing packages (within Manhattan).
I asked the managing agent for reciepts for all the fed ex packages sent, to verify that they had $250 in expenses. They refused. I explained that I am willing to reimburse exactly what they paid in fed ex fees, and not a penny more.
Am I being unreasonable?
This "fed ex" fee is in addition to my application fee ($1000), the seller's "right of first refusal review" fee ($1500), and all move-in deposits.
It seems that the managing agent assumes that because I will be writing so many checks (for much larger sums) at the closing, I will hand over bogus fees without thinking.
[less]
Response by anonymous
over 18 years ago
Posts: 65
Member since: Feb 2007
OMG, those fees seem ridiculous! I'm buying a co-op in the UES and all fees in total might have added up to only $600!
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 83
Member since: Jan 2007
I'm doing the same thing right now. This is my first NYC purchase - $900 for an appraisal, $100 in notary fees? And the list goes on and on. I'm dealing with Countrywide and since I have another loan with them, I was told they were "waiving my closing costs"...yet I'm looking at upwards of 15K. Is this right?
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 115
Member since: Apr 2007
I suppose everyone's situation is different, but some of these fees do seem high at first glance. My total for my co-op board application including background checks, duplication fees, etc., was about $1,000.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 77
Member since: Apr 2007
#1 here: Let me be clear. I am not protesting the application fees. The managing agent can set those fees at whatever the market will tolerate. And I was aware of the application fee before going into contract.
I am protesting the $250 fed-ex fee because they are claiming that this fee is a reimbursement of costs that they incurred. If this truly is a direct reimbursement, there should be no objection to showing me the reciepts for the fed ex shippments totalling $250. The fact that they will not (or more likely, can not) provide these reciepts makes me think that this is an inflated fee unrealted to any real cost. I find this very objectionable.
There was no discussion of the "fed-ex" fee before the scheduling of the closing. I suspect that they want to take advantage of the fact that I will be writing checks for hundreds of thousands of dollars at the closing and won't examine the validity of smaller fees.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 98
Member since: Apr 2007
Closing on a condo always costs more than a co-op's closing costs. I do admit though that those fees seem out of whack. I say fight the fight. Good luck. Maybe if enough people like you stand up to these managing agents we can stop them from this behavior.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 77
Member since: Apr 2007
Closing costs for a condo are higher because of the mortgage recording tax and title insurance.
The fact that the buyer is paying these closing costs should not be carte blanche for the managing agent to tack on baseless fees.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 371
Member since: Apr 2007
Someone had to mail that via FedEx and that someone has to afford living in Manhattan, so it's very reasonably they should charge you $250 for their time ;)
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 2841
Member since: Feb 2007
#8 is nuts...
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 311
Member since: Mar 2007
The managing agent should be able to show the receipts. Talk to your attorney.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 47
Member since: Apr 2007
It's not really worth throwing a fit over and certainly not worth paying a lawyer to deal with. I just refinanced (not in NYC) and paid some kind of FedEx-type fee that was similar, and this was on a relatively low-cost refinance. I think this type of fee includes both the actual shipping cost plus the cost of their time in putting the packages together. It's best to use FedEx or a similar shipper so there is tracking. A courier would probably be more expensive.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 9
Member since: Apr 2007
Countrywide are the cheesiest hacks in the mortgage game - they overcharge & underperform. I have the misfortune of having my mortgage sold onto them, they overcharged for a client refi , their processing times are the worst & they are sloppy to borderline incompetent. My only hope is that their sub prime holdings will blow up their balance sheet.
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 277
Member since: Jan 2007
good luck negotiating ANY fees . . basically the bank has you by the balls going into closing, and they know it is too late to switch -- that is why you dont get your full title assessment until a day or two before close . . . I just closed on Friday and I am still walking funny!
Ignored comment.
Unhide
Response by anonymous
over 18 years ago
Posts: 1905
Member since: Apr 2007
With purchasing real estate in New York City you should already have an attorney and I would certainly talk to him/her about this. Perhaps nothing can be done but at least you'll have the satisfaction of doing all that you could. Sadly that may be their term for the bend over fee.
'/%3e%3c/g%3e%3c/svg%3e)
OMG, those fees seem ridiculous! I'm buying a co-op in the UES and all fees in total might have added up to only $600!
I'm doing the same thing right now. This is my first NYC purchase - $900 for an appraisal, $100 in notary fees? And the list goes on and on. I'm dealing with Countrywide and since I have another loan with them, I was told they were "waiving my closing costs"...yet I'm looking at upwards of 15K. Is this right?
I suppose everyone's situation is different, but some of these fees do seem high at first glance. My total for my co-op board application including background checks, duplication fees, etc., was about $1,000.
#1 here: Let me be clear. I am not protesting the application fees. The managing agent can set those fees at whatever the market will tolerate. And I was aware of the application fee before going into contract.
I am protesting the $250 fed-ex fee because they are claiming that this fee is a reimbursement of costs that they incurred. If this truly is a direct reimbursement, there should be no objection to showing me the reciepts for the fed ex shippments totalling $250. The fact that they will not (or more likely, can not) provide these reciepts makes me think that this is an inflated fee unrealted to any real cost. I find this very objectionable.
There was no discussion of the "fed-ex" fee before the scheduling of the closing. I suspect that they want to take advantage of the fact that I will be writing checks for hundreds of thousands of dollars at the closing and won't examine the validity of smaller fees.
Closing on a condo always costs more than a co-op's closing costs. I do admit though that those fees seem out of whack. I say fight the fight. Good luck. Maybe if enough people like you stand up to these managing agents we can stop them from this behavior.
Closing costs for a condo are higher because of the mortgage recording tax and title insurance.
The fact that the buyer is paying these closing costs should not be carte blanche for the managing agent to tack on baseless fees.
Someone had to mail that via FedEx and that someone has to afford living in Manhattan, so it's very reasonably they should charge you $250 for their time ;)
#8 is nuts...
The managing agent should be able to show the receipts. Talk to your attorney.
It's not really worth throwing a fit over and certainly not worth paying a lawyer to deal with. I just refinanced (not in NYC) and paid some kind of FedEx-type fee that was similar, and this was on a relatively low-cost refinance. I think this type of fee includes both the actual shipping cost plus the cost of their time in putting the packages together. It's best to use FedEx or a similar shipper so there is tracking. A courier would probably be more expensive.
Countrywide are the cheesiest hacks in the mortgage game - they overcharge & underperform. I have the misfortune of having my mortgage sold onto them, they overcharged for a client refi , their processing times are the worst & they are sloppy to borderline incompetent. My only hope is that their sub prime holdings will blow up their balance sheet.
good luck negotiating ANY fees . . basically the bank has you by the balls going into closing, and they know it is too late to switch -- that is why you dont get your full title assessment until a day or two before close . . . I just closed on Friday and I am still walking funny!
With purchasing real estate in New York City you should already have an attorney and I would certainly talk to him/her about this. Perhaps nothing can be done but at least you'll have the satisfaction of doing all that you could. Sadly that may be their term for the bend over fee.