Legal Question in Real Estate Law in California
Escrow Misappropriation Of Funds?
I sold my home a few months ago and had some questions regarding the interest charged on the final closing statement. I was charged twice for interest and when I questioned the escrow agent she rudely told me the file was closed and that was that. Recently I reviewed the monetary entries with the mortgage company and all entries were accounted for and coincided with the closing date except the additional interest payment in question. The home closed on the first day of the month (the buyer extended escrow to the first of the month, without my knowledge, for his benefit of bringing less money to the table ) and all mortgage payments, plus interest were paid. I have not received any refund checks and am wondering where that $1,500.00 went? Can escrow companies refuse to reopen a file once it is closed? I never received any other documents/receipts other than the final settlement statement. I am since finding out some other payouts were negotiated down, without my knowledge/permission, by the escrow agent. Does she have the authority to do that? I thought that the escrow agent's duties were to act as a neutral 3rd party. I might add that the buyer is a good friend of the escrow agent. Thanks for you time.
1 Answer from Attorneys
Re: Escrow Misappropriation Of Funds?
The escrow business seems to be run a lot differently in Southern California than up here in the Bay Area. Most Southern California escrows seem to be handled by smaller, independent companies, and some of these seem to have too-tight connnections with particular lenders or other non-neutral parties. Up here, the escrow work is usually done by the big title insurance companies, which has both advantages and disadvantages. One of the advantages is that they are more stable and, I think, more professional. I cannot imagine rudeness toward a reasonable question about a past transaction by a party, or the party's broker or attorney.
In your case, I suppose there are three possibilities. One is that you don't understand the transaction and the charge is really legitimate. If so, I'd think the escrow company would be quite willing to go over the details with you and give you an explanation. Surely they keep records of transactions that are only a few months old.
The second possibility is that they made a mistake, and the third is that they have deliberately cheated you. Rudeness and unwillingness to discuss the transaction points a bit in that direction.
Did your agent participate in the closing with you? Perhaps he or she can assist you in figuring out your final statement.
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