Legal Question in Real Estate Law in Pennsylvania
I purchased my first home almost 3 months ago. While at closing I realized that my taxes were not being escrowed although they were on my good faith estimate. My Mortgage broker told me that was just to ensure I had enough money to close. There was actually no tax information on my Hud1 form. Two days ago I was contacted by my Real estate agent saying that she needed a check for the sellers because I did not pay them for the taxes that they have already prepaid. Today I got a letter from the closing company saying sorry that they made a mistake and did not include any tax proration�s at closing and that I need more money to close than I was told. They sent me a revised Hud1 form and asked me to sign it and send it along with a check for the amount of taxes the seller has paid. There were so many small things that didn�t seem right during this whole purchase and was not the experience I thought it would be! Legally do I have to sign this revised HUD form and send this check for money that was NEVER listed in the original contract. If I thought it was going to cost me this much more at closing I would not have purchased the house. It seems like this may be another item along with the escrow mishap of them trying to make a deal go through that otherwise may have not happened and are now trying to collect this money. I don�t understand how this goes unnoticed by the closing attorney, seller, selling agent, and my agent? Any advice would be greatly appreciated!
2 Answers from Attorneys
That was your lawyer's job to catch that error. You did have a lawyer didn't you?
{John}
Did you purchase title insurance for this purchase? Was the closing attorney representing you [had you engaged her or him?]
The good faith estimate is just that, an estimate.
You have to understand that unless you have engaged your own lawyer, none of the other parties at the closing or in the transaction represents you.
Adjustments for taxes that have already been paid for the sellers should have been made and shown on the HUD-1. It sounds somewhat careless that the closing agent did not prepare an accurate HUD-1, if that is the case. There are times when all of the financial information is not available at the time of settlement, and if either party owes money to anyone after the settlement, many forms of title company documents include an agreement by the buyer and by the seller to be responsible for correcting and paying the items that were not included.
You should consult with your own real estate lawyer to review the closing documents and determine if you are or are not obligated for what the Realtor is requesting. In any event, you should get a written request, not just a phone call.
This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.
* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.
* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.
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