HELP error/oversight in Title paperwork potential money lost

[George Red]

Hey all, long story short I bought an off market duplex in KC Missouri through a wholesaler. The wholesaler never gave the title company the tenant leases, so the closing documents didn't include pro-rated rent for the month we closed or the transfer of tenant deposits (which I admittedly overlooked while signing the mountain of paperwork on closing day). I've cordially sent an email to the seller and title company requesting pro-rated rent/security deposits and the seller is basically saying too bad so sad it should have been handled during closing (we closed early May).

I've purchased investment property before so maybe I fell short in assuming all required pro-rations/transfers were in the closing documents which is a learning on my part. Has anyone had experience with a similar situation where something was missed at closing and potentially addressed after the fact? I read the closing statements over and there is the "errors and omissions clause" below.

Any guidance/recourse or have I just learned an expensive lesson. I assume at a minimum the tenant deposits are not the seller's property and do not belong to him at all.

Any thoughts/guidance appreciated.

[Matt Devincenzo]

Whether it happened during closing or not, the seller is still bound by the obligation to pro-rate if that is what your contract stated. I'd find that section of the contract and send it to him as well and confidently state that he agreed to pro-rate and that closing the purchase doesn't eliminate the obligation to comply with that section of the contract. 

It is not completely atypical that there might be something that wasn't completely addressed in the closing and needs to be taken care of afterwards. I'd absolutely consider pursuing this in court if needed, especially since by closing early in May the damage done is likely more significant. The SD issue also adds insult to injury in that you're right they aren't his, but by selling and you accepting the condition you are now liable for them not him. So unless you pursue him for those items now then it is