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Title Company withholding warranty deed and tax escrow monies

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lpalmer22

Guest
What is the name of your state? MI

I recently closed on a newly built home. Two days after closing the title company calls and says that we owe them an additional $1500. I asked them to expaling and they said that they "mistakenly" gave me a credit that I should not have had and now they are short $1500 in paying the seller. I called the seller/builder and they said that all monies due to them were paid in full and that my issue was not with them, it was with the title company. They in turn had nothing to do with it. I asked the title company to explain how we owe them $1500 and they basically said they put numbers on the wrong side of the sheet.

They will not mail us our land survey or warranty deed for the house nor have they mailed us the $500 in tax escrow money that is due to us. The closing agent said that it is with their attorney.
What rights do I have?
 


B

buzzards27

Guest
Rights?

Seems to me that you have the right to a full and detailed explaination on what happened before you give back the money you owe them. Unless you find that they are wrong you should pay back the money. If your bank teller gave you a $100 bill instead of a $10 bill would you keep it or return it?
 
R

RE_Star

Guest
There is more than one issue here.

First, is the title company allowed to withhold filing your deed with the County Assessor's Office as well as your escrow money until they are compensated for a mistake they made ??

I doubt it. What happens when a transfer of ownership isn't recorded promptly, resulting in one or more days that ownership is unaccounted for ??

It causes what's legally known as a 'cloud on the title'. Which means you may have to begin the procedure to what's legally known as 'quiet the title'. This usually entails taking out a newspaper ad and other minor things.


If the title company made an honest mistake and you do in fact owe them $1,500, then you should be willing to pay it.

However, the way they seem to have gone about the issue may in fact be illegal. Keep in mind that the people working at the title company are not lawyers or even well educated in real estate law. Therefore don't waste your time or energy calling them up and yelling at them. They said your paperwork is now in the hands of their attorney, so that is the only person with the title company you should be communicating with from now on.


Call their attorney and make an appointment to go down there and meet with him/her. Ask them to go over the information and the mistake made by the closer to explain the situation. Also inform the attorney that if any problems arise as a result of the deed not being registered with the county courthouse in a timely manner (such as a cloud on the title), than you will be filing a civil suit against that attorney as well as having their practice investigated by the Attorney General's office.

The builder (seller) is right in that your situation has nothing to do with them.

In all likelihood, the title company isn't going to risk a civil lawsuit, criminal investigation, increased insurance, and business by making up a story that you owe them $1,500. Therefore, it seems logical that their claim is most likely legitimate.

If you can't pay the $1,500 all at once, offer to make a short series of installment payments (at zero interest).
 

Souix

Senior Member
lpalmer22 said:
What is the name of your state? MI

I recently closed on a newly built home. Two days after closing the title company calls and says that we owe them an additional $1500. I asked them to expaling and they said that they "mistakenly" gave me a credit that I should not have had and now they are short $1500 in paying the seller. I called the seller/builder and they said that all monies due to them were paid in full and that my issue was not with them, it was with the title company. They in turn had nothing to do with it. I asked the title company to explain how we owe them $1500 and they basically said they put numbers on the wrong side of the sheet.


***What they probably did was credit you the $1500 instead of the seller. So they probably paid the seller and now their escrow account is short. You need to call them to see the Final Closing Statement and the Revised Final Closing Statement. Then you need to write them a check for whatever you owe them.***




They will not mail us our land survey or warranty deed for the house nor have they mailed us the $500 in tax escrow money that is due to us. The closing agent said that it is with their attorney.
What rights do I have?

***Has the Deed been recorded? What is the $500 tax escrow money for? And why are they sending it to you? With all these questions unanswered, if I were you I would be on the phone first thing Monday morning getting this straightened out.***
 

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