Error in closing papers

What is the name of your state? Michigan

I closed on my home a week ago and all the paperwork went through and I cashed my check from the results of the sale. I received all final paperwork in the mail from my mortgage company.

Problem: Yesterday, my real estate broker called to tell me that the commision in the closing paperwork was wrong. It stated that the broker be paid 4 percent instead of the 8 percent in our original agreement. He wants me to cut him a check for the money he was shorted.


I have since found out that 8 percent is very high and told him that I didn't think it was a fair rate anyway. Also, since he signed his name at the bottom of the closing papers signifying that he read the statement, I told him that as far as I was concerned, the deal was final and I didn't intend to pay the cash.

He may sue me for the money.

Do I have a point? Or should I just write the check and be done with all of this?

HELP!!!

Thanks,
NorthwoodMan

[HomeGuru]

Originally posted by NorthwoodMan
What is the name of your state? Michigan

I closed on my home a week ago and all the paperwork went through and I cashed my check from the results of the sale. I received all final paperwork in the mail from my mortgage company.

Problem: Yesterday, my real estate broker called to tell me that the commision in the closing paperwork was wrong. It stated that the broker be paid 4 percent instead of the 8 percent in our original agreement. He wants me to cut him a check for the money he was shorted.


I have since found out that 8 percent is very high and told him that I didn't think it was a fair rate anyway. Also, since he signed his name at the bottom of the closing papers signifying that he read the statement, I told him that as far as I was concerned, the deal was final and I didn't intend to pay the cash.

He may sue me for the money.

Do I have a point? Or should I just write the check and be done with all of this?

HELP!!!

Thanks,
NorthwoodMan

**A: are you the Buyer or the Seller? If you are the Seller, read your contract with respect to the real estate commission to be paid.

Why doesn't the broker have to read the closing statement?

Why is it my problem if I unknowingly signed into a ridiculously high commision rate.

But when the broker (supposedly professional) knowingly signs at the bottom of the closing statement, signifying his agreement that the numbers are correct, he can sue me after the papers are signed?

It is my contension that he saw the 4 percent and figured that was standard. Later, when the listing agent told him that he nailed me for an 8 percent commision, he realized his mistake.

Where am I going wrong here?

Will I lose in small claims court???

By the way, I am the seller.

[HomeGuru]

How much sales commission did you agree to pay as noted on your listing contract?

8 percent.

By the way, you really don't seem to be concerned with my other points.

Are you telling me that the contract that stipulates 8 percent is the ony valid contract?

[HomeGuru]

Originally posted by NorthwoodMan
8 percent.

By the way, you really don't seem to be concerned with my other points.

**A: because they are not relevant to your issues.
*****

Are you telling me that the contract that stipulates 8 percent is the ony valid contract?

**A: yes, unless you can prove that you have anything else in writing from your broker indicating a lesser amount than 8%.

He just did didn't he? He said the broker in writing signed the closing papers saying the number was correct. Is it the sellers fault? After all, they could have had a verbal agreement to lower the rate...

[HomeGuru]

[quote]Originally posted by sickofthisplace


**A: that's nice of you to druge up an old thread from July.
**********
He just did didn't he? He said the broker in writing signed the closing papers saying the number was correct.

**A: you have no clue sicko. The broker indeed signed the closing papers but such closing transactional documents are not considered contractual or a contract document. Hence my question to the writer with respect to what commission rate was agreed to in the listing contract.
*********
Is it the sellers fault?

**A: it is not the Seller's fault for the error in the closing statement but that is not the point. The point is that the Seller contractually agreed to the 8% commission and thus remains liable for said amount despite the 4% amount as noted in the closing statement.
**********


After all, they could have had a verbal agreement to lower the rate...

**A: and in general, most listing agreements contain a clause that states something to the effect of "this agreement contains all agreements by the parties and any changes must be in writing......" Thus even if there was a verbal agreement, such an agreement would not be enforceable.

ok...

Where do i go to ask about what law and equity means?

Not to drag this on as Im sure the matter is all said and done by now but we just went over this in class last night.They gave an example of this exact type of situation and it was said that it would be the brokers loss because they shouldt have signed the papers agreeing on the lower rate. They are supposed to go over the closing papers before closing even takes place. So too bad for the broker. I guess for once they got screwed.

[Bigfoot]

One reason for the question of whether the broker was the seller or buyer's agent is that the seller usually pays the buyer's commission. I thought that one reason that the HUD 1 statement is given in advance is so that the seller's and buyer's agents can see in advance a close approximation of closing costs.

If the seller's agent receives 4% and pays the buyer's agent 3%, then the seller's agent is getting only 1% for their efforts, which includes advertising the property, etc.

The poster has to consider the difference between going to court over the 4% commission (and probably paying an attorney), shelling out an additional 4%, or taking a chance that a judge will find on their behalf.

This may be a close call.

[HomeGuru]

Writer. how much are we talking about?

[Souix]

I just wanted to add, since I have worked as an escrow officer too, that real estate agents do not sign closing statements, at least not in California or Oregon. Even if they did sign the closing statement, it is not a valid contract, therefore, seller is liable for the balance of 4%. Pay up!

[HomeGuru]

Thanks for the addition. In many cases, closing docs are signed by the agent as proof of receipt only and not to approve form, content and information.