I purchased a home seven months ago. Yesterday the real estate lawyer's office called me and said a mistake was made on our paperwork and they had undercharged me by $500. Apparently when filling in the forms someone in their office put $1000 as our deposit when in reality we only gave the seller a $500 deposit. When the real estates office paid every one out at the closing, that left a deficit of $500 on their behalf which they are contacting me now for. Can they do this or is or is it their mistake making it their loss. This sale was over and concluded a very long time ago. Is there a statute? Please help, Thank you.
2007-10-16 12:22:57 · 13 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I`ll say consult w/ur lawyer.It`s their mistake,and the deal is close.Just play it safe and call ur lawyer.With me they`ll have areal hard time getting any money back.Good luck.
2007-10-16 12:38:54 · answer #1 · answered by Gilbert 4 · 0⤊ 1⤋
Wow...I am truly amazed at some of these replies..."greedy Realtor", etc. Lets reverse the scenario for a second. If your boss underpaid you, would you say, "Oh well, honest mistake I forgive you don't pay me?" No way would you, nor would anyone else, despite what they might claim in their posts related to this question. Not only is it your agents responsibility to verify that the figures are correct, but you KNEW you only gave $500.00 deposit. When the HUD1 was explained in detail at closing, you had to have noticed an issue. Shame on you if you didn't. Ignorance doesn't excuse it. Lets say that he overcharged you by only showing a $250.00 credit for the deposit. Would you let that slide? Legally you owe. Should it have been caught prior to closing? Absolutely, by BOTH of you. IS he entitled to the full fee he earned? Yes. Do you have to pay it? Your call (or a courts). Do the right thing.
2007-10-17 14:20:04 · answer #2 · answered by Adam A 2 · 0⤊ 0⤋
Along with the many things you signed at the closing, one of the pieces of paper was an agreement that if an error was found you would be willing to return to the closing table and amend the error. That is the reason they went ahead with the closing despite the fact that the math didn't add up. So yes, you will have to pay the $500 that you in fact owe due to a clerical error. Sorry. If you don't pay the lawyers what do you think they will do .... hmmm ... what do lawyers do ....?
2007-10-16 20:24:24 · answer #3 · answered by linkus86 7 · 0⤊ 1⤋
Check your HUD-1 forms you signed at the title company. They will be 2 pages. It will break down every cost. It will show what you paid in earnest money.
If it shows you paid 1000 on the HUD-1 forms, when you only paid 500 its an honest mistake. If it shows you paid 500 on the HUD-1 forms and they are saying they gave you credit for 1000 they are lying.
Now if it shows you paid 1000 and you really paid 500. You owe them the money legally and morally. You will sign a peice of paper when you closed your home. It will say if anything is wrong, within reason, you agree to come back in and sign again. Meaning they can ask you to come back to the title company and sign the new huds showing that you actually owe them 500 dollars more. You already agreed to it.
I would check your HUD-1 forms. If it shows 1000 for the earnest money and you only gave them 500. Just pay it. Do you really want to fight it? You should have known at closing it was wrong. Why didnt you say something? Unless it wasnt pointed out.
The title company will just call you in to say the HUDs are wrong. If you want a lawsuit over this go ahead. But really its all up to the HUDs. If it shows 500 on the HUDS tell them to go to hell. If it shows 1000 on the HUDs they will get it back.
Not the first time documents will be wrong. Stand in line my friend. Its called human error, thats why you signed that paper at closing saying you would fix it. And before you go looking for it, you signed it. Its in ever package.
2007-10-16 20:03:32 · answer #4 · answered by financing_loans 6 · 1⤊ 1⤋
Yea you probably have to pay but as a Realtor myself I would be ashamed that I didn't review the numbers for you and pay up something if not all. I'd also tell my settlement people that they messed up and they need to assist with the money if they want my business. What buyer really understands the HUD? The agent should be representing the buyer and the lawyer should be representing the contract. I guess they both messed up - you still get to pay based on that authorization to correct errors form.
Disclosure - I'm not an attorney.
2007-10-16 20:30:18 · answer #5 · answered by Mark 1 · 0⤊ 1⤋
Yes. There is a statute, and it says that the real estate agency has the right to collect such funds which occurred due to accounting error for at least one year post sale, depending on the state in which you live. It's only $500. Pay up.
2007-10-16 19:49:01 · answer #6 · answered by acermill 7 · 2⤊ 1⤋
I wouldn't buy that excuse. I wouldn't pay it. It's on the contract, a copy of the check is made when it's accepted, a copy of the contract is sent to the attorney reflecting the earnest money, and a copy of the check is provided to the lender.
The Realtor also had the opportunity to be present at closing, is RESPONSIBLE for reviewing the HUD for accuracy on your behalf, and once it's closed, IT'S A DONE DEAL!
The time to make the correction, was at the closing table, and your Realtor failed to do that.
I just don't "buy" a mistake like that was ever made.
The Realtor has some nerve to call you with that and expect you to pay. I personally think the Realtor is trying to make some tax-free income outside of closing.
2007-10-16 20:04:44 · answer #7 · answered by Expert8675309 7 · 0⤊ 2⤋
Tell them to prove it in writing ..let me see the mistake...plus your lawyer also should have recieved all this and your closing documents might have this info.
I wouldn't do a thing until it's proven in a document thats incorrect..(IN WRITING WHERE MISTAKE HAS INK TO IT)
Talk is cheap so me proof..
and one other thing..I doubt it very much the real estate agency payed out anyone..It's your lawyers secertary that handles all that and writes the checks..
2007-10-16 21:04:42 · answer #8 · answered by overhereyoupretty 3 · 0⤊ 0⤋
Morally, if you know that you were given credit that hadn't been earned, then you'll want to return it. The only paperwork after closing that can be changed is typically for typos, i.e. misspellings.
On your purchase contract it likely says "Closing constitutes acceptance". The attorney is out of $500, which they can try to get from their own errors and omissions, however, it's a mighty pitiful firm that takes that long to see that their trust account is out of balance.
2007-10-16 20:29:17 · answer #9 · answered by Venita Peyton 6 · 0⤊ 1⤋
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2007-10-19 01:38:36 · answer #10 · answered by Anonymous · 0⤊ 0⤋
It really depends on where the transaction took place. However, it you trully underpaid you should pay the $500 it is only fair. If you cannot make afford it make some type of arragement.
2007-10-16 19:39:11 · answer #11 · answered by Anonymous · 0⤊ 1⤋