Legal Question in Real Estate Law in North Carolina

Re: right to cancel

Off the top of my head, you shouldn't be liable for any fees. But it can be a little more complicated than that. If you hired your own attorney, you may owe him/her money depending on what their engagement letter says. At the same time, you may be able to recoup that from the Lender. You should definitely not be responsible for any lender fees, title insurance, recording fees, etc. and I think you can get back any application or appraisal fee you already paid. Here is a portion of the Real Estate Settlement Procedures Act (RESPA)

The statute indicates

The consumer cannot be required to pay any amount in the form of money or property either to the creditor or to a third party as part of the credit transaction. Any amounts of this nature already paid by the consumer must be refunded. "Any amount" includes finance charges already accrued, as well as other charges, such as broker fees, application and commitment fees, or fees for a title search or appraisal, whether paid to the creditor, paid directly to a third party, or passed on from the creditor to the third party. It is irrelevant that these amounts may not represent profit to the creditor.

2. Amounts not refundable to consumer. Creditors need not return any money given by the consumer to a third party outside of the credit transaction, such as costs incurred for a building permit or for a zoning variance. Similarly, the term "any amount" does not apply to any money or property given by the creditor to the consumer; those amounts must be tendered by the consumer to the creditor under � 226.23(d)(3).

- Jeff