Legal Question in Real Estate Law in New Jersey

Re: seeking additional money after closing

I strongly advise you to retain an attorney to assist you in resolving this matter.

At the closing, you should have received a RESPA (Real Estate Settlement Procedures Act) form, also often called the "HUD-1" form.

This form has an itemized breakdown of all the funds coming into the transaction, as well as all the disbursements being made.

There are sometimes errors made in the computation, unfortunately.

However, a $5000.00 error seems rather large. You are certainly entitled to a detailed, written explanation of the source of the error, and for your settlement attorney to explain not only what this money is supposedly for; but also, why the matter was not correctly handled at the closing.

I would certainly insist on receiving an amended RESPA/HUD-1 form, prior to deciding how to respond to the request for additional funds.

The responsibility for the error is another issue. It depends what caused the error and who is claiming the money. Multiple parties may bear responsibility, or even if you are responsible directly to someone, you might also be entitled to reimbursement from a different party (again, depending on the specific facts involved, which you have not described).

You do not indicate you were advised as to WHAT the particular error supposedly is, only that it is a "bookeeping error". That still doesn't tell you what the money is supposed to be paid for, does it?

$5,000 is a significant sum and in addition to possible liability for this amount, there may also be an issue concerning the validity of the entire transaction.

I urge you to consult with an attorney immediately to deal with the specifics and to protect your legal rights. I handle this type of work and you should feel free to contact me to discuss retaining me for this matter.

Alan S. Albin, Esq.

973-605-8995

[email protected]