MtHoodRising
Junior Member
What is the name of your state? OR
Here is our situation. We had a house built in 2006 and the seller (builder) carried the financing for the build, although it was a custom built home. A contract was signed at the beginning of the build for the base house and we agreed to pay for upgrades in cash as we went along. The builder was difficult to work with, but we paid all invoices that came our way. We closed on July 29, 2006. The sales contract was written by the real estate agent for the seller (builder), after we (the builder, his agent, our agent and us) all agreed on the final sales price, funds paid directly to the seller during the build process and the net amount due to the seller (builder). The final contract price was also taken up a couple grand to absorb any late upgrade invoices so that we could get a final price to our lender to get the loan papers and closing documents drawn up. The agreement was that if the final invoices for upgrades plus the initial contract price of the house did not add up to the final agreed upon price, then the seller (builder) would rebate funds back to us at closing. That was the case and we were rebated about $1600.
Fast forward to December 5, 2006. We received a letter from the title company along with a new closing statement. In the letter, they stated that the final sales price was in error, so no funds should have been refunded to us at closing. Additionally, they stated that they seller (builder) had not included a final invoice for one of our upgrades of about $750. So, they wanted us to contact them about a shortfall in escrow of around $2400. I looked at the information they sent me and the numbers did not match the closing statement that I signed at closing nor the one that they sent to me after the loan funded (these two matched each other). The sales price that was agreed upon "is what it is" and I did not see it as an error. I called the title company and stated this and they said they would discuss it with the seller (builder). Since that time, we have never been contacted again by the title company nor did we ever receive a formal invoice or bill of any kind regarding this issue from either the title company or seller (builder).
Fast forward to September 5, 2007. I have been e-mailing the seller (builder) over the past couple weeks regarding our one year warranty work on the house, including some issues we are having with our gutters (the house was built with too few down spouts, so the water runs away from the existing down spouts in a couple areas causing some issues). Now the builder has come back to attempt to leverage us to back down in our requests to add two down spouts installed and hooked up to the rain sewer lines. This will cost him about $500, but is needed to resolve the standing water and reverse flow issues. He is stating that he is going to go back to the title company to reopen our file to pursue the so-called escrow shortfall. Ugh! Again, this builder may be playing games or he may be serious in trying to get additional cash from us. We paid almost $650k for our house and we know that this guy made a good profit.
Ok, my questions are:
1. Who is liable for an error in the sales contract and closing documents when we really believed that they were accurate?
2. Is there a legal or reasonable period of time after a home sale has closed and funded for a title company or seller to come back to the buyers to attempt to present a case that additional funds are due?
3. If we receive a letter from the title company again with the same information that we believe is incorrect, do we have to respond or just wait until they choose to pursue it legally? Is it better to respond in writing via certified letter that we do not agree with their claim?
We are not trying to play any games here, we have never had this happen in buying and selling six homes in the last twelve years. This may all come to pass, but I just want to be prepared if legal action is taken. Thank you!
Here is our situation. We had a house built in 2006 and the seller (builder) carried the financing for the build, although it was a custom built home. A contract was signed at the beginning of the build for the base house and we agreed to pay for upgrades in cash as we went along. The builder was difficult to work with, but we paid all invoices that came our way. We closed on July 29, 2006. The sales contract was written by the real estate agent for the seller (builder), after we (the builder, his agent, our agent and us) all agreed on the final sales price, funds paid directly to the seller during the build process and the net amount due to the seller (builder). The final contract price was also taken up a couple grand to absorb any late upgrade invoices so that we could get a final price to our lender to get the loan papers and closing documents drawn up. The agreement was that if the final invoices for upgrades plus the initial contract price of the house did not add up to the final agreed upon price, then the seller (builder) would rebate funds back to us at closing. That was the case and we were rebated about $1600.
Fast forward to December 5, 2006. We received a letter from the title company along with a new closing statement. In the letter, they stated that the final sales price was in error, so no funds should have been refunded to us at closing. Additionally, they stated that they seller (builder) had not included a final invoice for one of our upgrades of about $750. So, they wanted us to contact them about a shortfall in escrow of around $2400. I looked at the information they sent me and the numbers did not match the closing statement that I signed at closing nor the one that they sent to me after the loan funded (these two matched each other). The sales price that was agreed upon "is what it is" and I did not see it as an error. I called the title company and stated this and they said they would discuss it with the seller (builder). Since that time, we have never been contacted again by the title company nor did we ever receive a formal invoice or bill of any kind regarding this issue from either the title company or seller (builder).
Fast forward to September 5, 2007. I have been e-mailing the seller (builder) over the past couple weeks regarding our one year warranty work on the house, including some issues we are having with our gutters (the house was built with too few down spouts, so the water runs away from the existing down spouts in a couple areas causing some issues). Now the builder has come back to attempt to leverage us to back down in our requests to add two down spouts installed and hooked up to the rain sewer lines. This will cost him about $500, but is needed to resolve the standing water and reverse flow issues. He is stating that he is going to go back to the title company to reopen our file to pursue the so-called escrow shortfall. Ugh! Again, this builder may be playing games or he may be serious in trying to get additional cash from us. We paid almost $650k for our house and we know that this guy made a good profit.
Ok, my questions are:
1. Who is liable for an error in the sales contract and closing documents when we really believed that they were accurate?
2. Is there a legal or reasonable period of time after a home sale has closed and funded for a title company or seller to come back to the buyers to attempt to present a case that additional funds are due?
3. If we receive a letter from the title company again with the same information that we believe is incorrect, do we have to respond or just wait until they choose to pursue it legally? Is it better to respond in writing via certified letter that we do not agree with their claim?
We are not trying to play any games here, we have never had this happen in buying and selling six homes in the last twelve years. This may all come to pass, but I just want to be prepared if legal action is taken. Thank you!
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