If we have already signed all of our closing documents in a real estate transaction, can the title company come back and ask that we pay lawyer fees?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If we have already signed all of our closing documents in a real estate transaction, can the title company come back and ask that we pay lawyer fees?
We are purchasing a short sale property of which has been a complete nightmare. We just signed the closing documents last week and were thinking we were closing that night but then came to find out that we weren’t going to be able to close until the seller sent in his paperwork. The seller still hasn’t sent in his paperwork and just today his realtor/broker told our realtor that we were responsible for paying the accruing lawyers fees from whatever date? Is this okay? I think it’s a breach of the contract that we’ve already signed.
Asked on October 18, 2011 under Real Estate Law, Oregon
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Good question. If you did not agree to pay the accruing attorney fees of the presumed lender concerning this short sale transaction in any written document for the sale, then you have no legal obligation to do so.
Additionally, if you are obtaining a loan to purchase this property as a short sale is a federally insured loan, then the request that you pay the accruing attorney fees of the presumed lender very well could be a RESPA violation and would be illegal to pay even if you wanted to agree to pay the attorney fees to close the escrow.
You should consult with your real estate agent and consult with a real estate attorney about the situation you are facing and the potential RESPA violation that I have written about.
Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.