A transaction fee, sometimes called a broker administrative fee or compliance fee, is a flat charge some brokerages add to a transaction to cover the administrative costs of processing and documenting the deal. It is separate from and in addition to the commission.
The fee is meant to offset expenses like paperwork handling, file compliance, storage, and technology. It is typically disclosed to the client and appears on the closing statement, and depending on the deal it may be charged to the buyer or seller.
Because it adds to the total cost of a transaction, clients should ask about any transaction fee upfront and confirm it is disclosed in their agreement. Like commissions, such fees are subject to negotiation and full disclosure requirements.