Expert: Dick Dennis - 8/15/2008

Question
Dick,

THanks for taking my question.  My wife is trying to sell her parents home that was willed to her and is free and clear (no liens or mortgage).  She opted to sell it via home aution. It was sold to a lady who got the home for a fantastic price ($106,500 or about 15k lower than the low-end market price for the home).  She put down $6,500 on the home of which $3000 went to the autioneer and the rest went to my wife.  Now she has come back and wants my wife to pay $4000 of the $6000 closing costs.  First those closing costs seem high to me but secondly and more importantly my wife doesn't want to move on paying anything else since she sold the house low.  If they can't come to terms does the buyer have the right to get her downpayment refunded??  i can't imagine she does, particularly since $3000 went to the autioneer.  That said, I'm not a real estate expert so while I understand this delves into legal issues I would love to hear your opinion/advice.  I understand this is in no way binding legal counsel.

Thank you

Answer
I would tell the buyer, "Too bad. If it wasn't in writing, then it was not part of the transaction." Simple as all that, Harrison. If she doesn't want to continue on with the deal, then she will lose any and all moneys she put down. There is no attorney that would take her case if she wanted to sue for it.

She, by the way, is trying to pull a fast one. Those numbers are just to conveniently similar to her down payment. Therefore, I would be willing to bet she expects to share in those "closing costs." Yes, it is possible that her lender has extraordinary large closing costs.

Your auctioneer got paid for a service. Therefore, he is the one who has to make sure the sale goes down. If not, advise the buyer that you are suing her for specific performance, the balance of the purchase price. Then go see a real estate attorney. I wish you well.

Dick Dennis