Expert: Dick Dennis - 6/17/2011

Question
Ater you pay for a home with 100 percent cash and after you sign all the closing documents, how long can a title company legally keep your cash before giving you keys to the home.
  I have been in escrow on a HUD home for 45 days. The home was supposed to close today, but it didn't, even though I have wired all the cash for home and I have signed the closing documents. This was all done by early afternoon.
   
   Earlier in the week, the company said it was having a problem reaching the managing agent for the HOA and the closing might be late as a result. However, I reached the agent within an hour.
   The title company also said that if I wired the funds and signed the documents today, I would close.

    What is the penalty for a title company if it doesn't do it's job and I end up living on the street until they do what they are supposed to do?  I know if I mess up, there are huge penalties.  What is their fiduciary duty?  They have tons of my money in their bank now, yet I don't have a home and they still won't tell me when it will close.
   My broker thought the home would close early, then she thought it would close today---but it never happens. I didn't pick the title company----HUD did.  How do I make them do their job and if they don't do it, what's the penalty?

Answer
Chances are, Susan, the title company is being square with you. Title ccmpanies have to account for their actions to the state's insurance commissioner. But as long as you had a broker work with you in the purchase of the property, I recommend you have her straighten everything out for you. That's her job. She should have explained to you why the transaction is dragging.

Did you ask her why you were able to talk to the HOA agent but the title company had a problem with that? My bet is that you will close Friday, the 17th. Title companies have a propensity of closing on Fridays. Don't know why, but they do.

Talk to your broker in this transaction and put the squeeze on her. She is the one who will put the squeeze on the title company. I do wish you well.

Dick Dennis
dixiedee13@aol.com