N.J. Realtors Settle "Junk Fee' Lawsuits

Weichert Realtors has agreed to pay $525,000 to settle a class action suit brought by a group of Mount Holly, N.J., homeowners who accused the real estate firm of charging “junk fees.”

The suit charged that the administrative fees, which range from about $160 to $250, violated the New Jersey Truth in Contract, Warranty and Notice Act and said the fee covered the same services included in the firm's sales commission.

Attorneys for Reichert said they considered the fee permissible but agreed to settle to avoid the expense of litigation. They noted the fee is no longer being charged.

Depending on how many homeowners apply, the plaintiffs could receive full reimbursement. It's thought that there are about 8,000 potential claimants.

Those who want to pursue a claim have until Sept. 2 to file forms, which can be accessed at www.adminfeeclassaction.com.

Similar case

In a similar case, Prudential Fox & Roach agreed to pay a settlement of $270,000. A fairness hearing and final approval of the proposed settlement is pending in Superior Court.

“We are very happy with the result in these class settlements. We think it is a win for consumers in New Jersey,” class attorney Stephen P. DeNittis said. “We hope that these suits will deter other real estate brokers from trying to charge these types of fees.”