Legal Question in Real Estate Law in Florida

applying for mortgage loans

Is it lawful in Florida if you are denied a mortgage loan for the bank to ask you to pay for fees such as title insurance, credit reports, appraisal fees, inspection fees, surveys, etc.? Seems unbelievable if they can legally collect money for something you never bought. I can understand it if you get the loan and it is included as closing costs or other fees relating to closing. If there is no house purchase and therefore no closing how can you be liable for these costs?


Asked on 1/10/03, 5:38 pm

2 Answers from Attorneys
David Slater David P. Slater, Esq.

Re: applying for mortgage loans

I would be hard pressed to see how you can be responsible unless you signed something agreeing to it.

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Answered on 1/10/03, 5:45 pm
Peter Gonzalez Sanchez-Medina, Gonzalez, Quesada, Lage, Crespo, Gomez & MachadoLLP

Re: applying for mortgage loans

Unless you signed an agreement to be responsible for payment of costs like the survey, appraisal and credit reports, I don't know how the bank would enforce payment. With respect to charges for title insurance, how can you be charged for insurance that would only be necessary if you were to close on the purchase of the home. If you don't buy the home, then there's no need for you to purchase title insurance. If the bank pursues collection, I recommend you retain a lawyer. Good luck.

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Answered on 1/13/03, 1:29 pm


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