Legal Question in Real Estate Law in Kansas

On August 21st 2009 we sold and bought a house, closing on both that day. The house we sold was paid for, we had no mortgage. We downsized to a less expensive house to have money left over to start a business. We received a check from the abstract business that did our closings at the end of the 2 closing. They applied the money from the first house to the second house, subtracted closing costs, commission and other expenses, then gave us a check in the amount of the remainder. In preparing the paperwork an error was made and they overpaid us by over $5000. I remember thinking we came out farther ahead than I thought we would, but I couldn't find the error so I didn't question it. I trusted that they knew what they were doing, we put the check in the bank, filed away the paperwork and didn't think about it again. On December 28th we got a call from the attorney who did our closing stating that the error was made and said money in the full amount overpaid needed to be brought in. He first said it needed to be returned before the end of the year to "get this mess cleaned up" which gave us only 3 days! We told him that we understood there was a mistake but could not immediately repay the money. We have spent money on our business we are starting and cannot pay in full at this time. The attorney has a reputation for crooked dealings and nearly lost his liscence a few years ago. I think as a result of his reputation our friends and family insist that we should not repay the money and contact a lawyer, yet we know it was never ours. It was given to us in error. What legal rights to we have? Should we have to pay back the amount in full including the charges from the attorney for the closing?


Asked on 1/05/10, 6:46 am

1 Answer from Attorneys
Keenan Post Post Warren Lindstrom, LLP

I would suggest you consider how you would respond if you paid $5,000 too much at closing and we're in the position of trying to get the $5,000 returned. If you are able to answer that question honestly, you should be able to determine how to proceed with the above question. If you are still struggling with what is right, nearly every closing I am aware of includes a document signed by all parties which states that if there are errors made in the closing documents (because that can happen to us humans), the errors will be corrected and all parties agree to do so. Finally, if you think keeping the $5000 distributed to you error is the right thing to do becuase the lawyer has a reputation for being crooked, you had better take a close look in the mirror. I hate to be so blunt, but it is precisely this kind of litigation that gives lawyers and clients of those lawyers bad reputations (morally and legally). Do the right thing; I believe you know what that is.

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Answered on 1/10/10, 3:54 pm


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