Legal Question in Real Estate Law in New Hampshire
Non-disclosure
Hi - I just closed on a piece of foreclosed property in Windham NH yesterday. Part of the P&S was an agreement that the bank that owned the property would credit me $4677 for carpeting and $323 for missing smoke detectors and a repair to a railing. The total credit was supposed to be $5000. At the very last minute - about 90 minutes before closing, I was told by the closing company that the bank I was borrowing money from would not allow the selling bank to give back more than 2% to closing costs. I had to leave about $1600 on the table because 2% of the selling price was only about $3400. The problem is that they never disclosed to me that this limitation existed either verbally or written. Otherwise I could have made other concessions such as an adjustment on the price. Do I have any recourse as far as non-disclosure? They literally made me NOT accept $1600 from the seller and the seller got to pocket that money. There's absolutely nothing I could do so close to closing. Thanks, Joe
2 Answers from Attorneys
Re: Non-disclosure
You are in a very challenging position. I would need a lot more information to fully evaluate your csse. It certainly sounds like you were not treated equitably by the bank in this case. Whether they intentionlly concealed a material fact from you needs to be determined. An examination of all of the loan and closing documents would be required. My concern would be that the cost of evaluating the case and determining how to approach the lender might be more expensive than any anticipated recovery. Although there is the possiblity that legal fees might be recovered in a case of this type, I would never suggest that a client depend upon that possibility.
Re: Non-disclosure
The first question would be whether you were represented by an attorney in the transaction. I'm guessing you weren't. An attorney would have been able to assist you in making the appropriate calls at a time when it would have been easier (and less expensive) to clear up the problem.
Secondly, assuming that you furnished the lender with a copy of the P&S containing the relevant terms, and that they understood you were acting in reliance on the terms and conditions in the P&S, it would not be unreasonable for you to look to the lender and or the closing company to be made whole. (Obviously, it depends upon who knew what when, and who told you, or didn't tell you, in a timely fashion.)
Given the sum involved, it might prove uneconomic to hire legal counsel, but a certified letter to the lender and or closing company might advance your cause. Just be sure that you hadn't previously received notice that there was a cap on seller credits.
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