Legal Question in Real Estate Law in Minnesota
Do we have to sign a ''Compliance Agreement''?
We are closing on a property and a document the Title Company wants us to sign is a Compliance Agreement. It states:
The undersigned hereby agrees to cooerate with any representative of (blank) Title Company regarding any reasonable requests made subsequent to closing to correct errors made concerning this transaction or provide any and all additional documentation deemed necessary to effect this transaction. The undersigned agree to execute or re-execute any documents which, in the ordinary course of business are deemed necessary or desirable to complete this transaction. However, the parties hereby understand that the Seller is not responsible for performing any duties or obligations of the Buyer in this transaction and the Buyer is not responsible for performing any such duties or obligations of the Seller.
The undersigned and (blank) Title Company, hereby further agree that in the event that this agreement is enforced, or attempted to be enforced, by judicial process, the prevailing party or parties, is or are entitled to all reasonable costs, disbursements, and attorney's fees incident thereto from the non-prevailing party or parties.''
Is this making us liable for the title company's errors? Must we sign it?
1 Answer from Attorneys
Re: Do we have to sign a ''Compliance Agreement''?
This form is used by many, but not all Title Insurance co.s. It does not make you liable for title ins. co. errors, but it does require you to help correct them. I would need to know about your transaction to tell whether this is significant to your situation (whether you are buyer or seller, the condition of title and occupancy, etc.). You are generally "required" to sign the form only to the extent that the title ins. co. may not issue title ins. without it and the lending bank may be requiring title ins.
There are often more significant questions than this form in such transactions, and it is adviseable to have an attorney assist review all doc.s prior to closing.
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