When you purchased your home, did you read each page of your closing package? Did you understand everything you read? If your answer is no to both, then you’re not alone. It seems some people are so eager to close on their home they just want to know where to sign. If you have a good real estate agent or real estate attorney, they usually do a great job of explaining everything. However, what if you don’t have someone to guide you? What if you don’t care to understand what you are signing? The results can be scary.
That brings us to this weeks Top Trulia Voices Question of the week. Elizabeth, a home buyer from Los Angeles, apparently overlooked a document in her closing package. She states, “My husband and I are buying a house, at this point we signed the closing package and unfortunately we missed to notice a Per Diem charge in the buyer estimated closing costs. This charge are due to delays from the escrow co. chosen by the seller. Do we still have to pay just because we signed this page by mistake? What can we do now? Is there any regulatory agency we can report these anomalies”
Thoughts from our Trulia Voices Real Estate Community:
Don Tepper, a real estate agent from Fairfax says, “Consult an attorney. Although I understand your situation and sympathize with you, it bothers me when someone asks: “Do we still have to pay just because we signed this page by mistake?” That’s what contracts are for.”
Real estate agent Dot Chance from Studio City says, “Hi, Elizabeth. It sounds like you may be purchasing an REO. The banks are notorious for throwing those per diem clauses in. If your agent is on top of things and you are making sure that you are doing everything to meet your contingency deadlines you will probably be okay.”
Charita King, a real estate agent from Downey, said, “You should be able to correct that. It could probably be a mistake by the escrow company. Instead of charging the seller for the delay, they charged you. Contact your escrow company and also review the addendum you signed when you accepted the deal.”
What do you think?
Can the home buyer have this adjusted? Or is it set in stone?
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July 1st, 2008 at 12:43 pm
At every closing there is way to many pieces of paper to go through. I would be talking with my lawyer immediately. I would do it now while it is still fresh and recently happened. Otherwise it will be harder to combat in the future.
July 1st, 2008 at 1:58 pm
I agree Bob. I have always used a real estate attorney for my closings. But I have to admit, when I purchased my first home many moons ago, I just wanted to sign the papers…..I was young and eager. Now I know better.
July 1st, 2008 at 2:39 pm
Perhaps you could change the contract so it states you pick the escrow company instead of the seller. This could be something you could negotiate if they are not willing to drop the perdiem clause.
July 8th, 2008 at 11:32 pm
Never sign anything without reading and making sure you understand it completely. Ask your Realtor to explain terms you may not know, or your attorney to explain the consequences of certain actions or laws. For terms and definitions, acronyms and many FAQ’s about real estate also visit Real Estate Wiki.
July 28th, 2008 at 2:39 pm
I would never sign anything without reading especially a home purchase contract. I would always read over leasing and renting contracts.