Botched Closing

Botched Closing

Real Estate Investor · OH · Member since 2011 · 41 posts · 31 votes

This is more of a rant than anything.

I went to a closing today to purchase a fine gem and the seller would not sign off on his docs due to the $50 escrow fee and a $50 deed preparation fee. He agreed to both of these charges in the purchase agreement but then felt the title company was out of line to charge so much.

The closer agreed to waive the $50 escrow fee just to get this guy out of the office. But then he started to cry over the county conveyance fee. Of course there is nothing the closer could do on that one. So everything seemed to be going in the right direction and then the seller said there is no way that I am going to pay $50 for an attorney to create a deed for me. At this point I was just going to pay the deed prep fee just to get this thing done. I was actually kind of comical to watch. Then the closer said to the seller if you don't want to pay the fee then go type up your own deed. At that point I was thinking I am not going to pay the deed prep fee for this idiot I will just let him go type up a deed himself. The seller agreed to walk away from the table and spend the weekend typing up his own deed and return with it on Monday.

This was a cash closing and should have taken a few minutes to complete. We were in there for over an hour. What a joke. The seller was getting a good chunk of money as he has the property paid off. If I didn't think this was such a good deal for me I would have just told him to shove off. What a waste of time. I can't believe that in this market that someone would risk a deal over $100 after all the seller got his full asking price.

Then the seller had the nerve to call me up after the closing and tell me how stupid I was to use a title company to close the transaction. He said that it is so easy to just do it yourself. I explained to him that I know how to do it myself but would prefer to use the title company so I know that everything is done correctly and I have title insurance just in case it was not.

I really did not think this deal was going to go through. Hopefully we can get this done on Monday.

Sorry for the rant but I just had to vent.

:wowo:

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Rehabber / Flipper · Simi Valley, CA · Member since 2010 · 597 posts · 259 votes
15y

I am surprised that you would trust this person to write up a deed, or even waste the time doing so when the problem could have been solved with a small amount of money. Now you have at best a delayed closing, and at worst a seller who backs out or a lawsuit in the future. Why not just pay the $50 or $100 and be done with it? Was he not willing to let you pay for it?

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  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    15y

    Something about today's date ... :lol:

    I'm waiting for you to yell "APRIL FOOLS". Either that, or you should just call that seller an "APRIL FOOL".

  • Real Estate Investor · OH · Member since 2011 · 41 posts · 31 votes
    15y

    I really did not think about the April fools thing. This was no joke unless the title company was pulling one on me.

    No this guy was a complete idiot.

  • Real Estate Investor · Sacramento, CA · Member since 2008 · 566 posts · 356 votes
    15y

    On Monday, make sure you read the deed, and you're not conveying the property to him!

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    15y

    Also, be certain that it meets the county recorder's criteria for recording; they like certain blank margins, and a place to put their seal, etc.

  • Real Estate Investor · OH · Member since 2011 · 41 posts · 31 votes
    15y

    The title company closer went over all of the requirements with him. I am sure he will have to do a few drafts. The title company is going to do all of the recording so I would assume they will check everything over to make sure it is correct but I will read and check myself. What a joke.

  • Washington, Washington D.C. · Member since 2010 · 23 posts · 32 votes
    15y

    Sorry to hear about your luck. Hope that everything goes smoothly with "minimal" to no hitches on Monday.

  • Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    15y

    There are other undisclosed reasons. Those are excuses, or the sellers are really old school immigrants. Just my opinion from dealing with so many folks at closing.

  • Rehabber / Flipper · Simi Valley, CA · Member since 2010 · 597 posts · 259 votes
    15y

    I am surprised that you would trust this person to write up a deed, or even waste the time doing so when the problem could have been solved with a small amount of money. Now you have at best a delayed closing, and at worst a seller who backs out or a lawsuit in the future. Why not just pay the $50 or $100 and be done with it? Was he not willing to let you pay for it?

  • Real Estate Investor · Portage, MI · Member since 2010 · 470 posts · 315 votes
    15y

    Communication is key in closings! The seller's agent (or if he did not have one, someone else) should have gone over the closing statement with him. There should be no surprises at the closing table.
    Bill

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    15y

    If I am sitting at the closing table and some idiot pulls this, I just pay the money; especially if it is a small amount. I just chalk it up to a pain in the --- fee.

    I hate dealing with these types of people.

  • Real Estate Investor · OH · Member since 2011 · 41 posts · 31 votes
    15y

    Well everything worked out. The seller brought the new deed in late Monday and it was perfect.

    I did not pay the seller costs just out of principle. This deal did not matter to me. If it did not go through I really did not care that much. I also was not worried about letting the seller create the deed because the title company was insuring title so it was their responsibility to verify the deed and make sure it was correct. If not then they would be on the hook for correcting it.

    All in all it worked out so now I have another project to add to the list.

  • Rehabber / Flipper · Simi Valley, CA · Member since 2010 · 597 posts · 259 votes
    15y

    Haha - that's cool. Glad it worked out for you!

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