Expert: Karyn Foley - 10/19/2007

Question
We closed on a home about six weeks ago. The seller owed 35,000.00 in order to close. He was not present nor had he paid this money. The title company went ahead with the closing and took our deposit of 25,000.00. To this day the seller has not paid this money. The contract has not been satisfied. I now want my check back from title company but they are saying that i will need sellers signature??

Is this true. Its my money and the house is not ours due to failure to pay by seller.

Please advise!!

Phil Kriesa

Answer
Dear Phillip:  I am very confused.  The only monies you should have paid into the escrow or title company prior to closing was your good faith deposit.  Usually, and I don't have a copy of your contract, the sellers signs documents stating that the title will be clear at closing, plus any items that may require a signature from the seller or funds due from the seller in order to deliver the clear title.  Why would you have given more money?  The original deposit should have been declared part of your purchase price, and it is thus deducted from that cash you would owe at closing.  In case this confuses you, please note that the good faith deposit money plus your loan that you contracted should be added up and those two amounts subtracted from your purchase price.  Then, the remainder should be the cash (usually be cashiers check)put in by you prior to closing.  Then:  add the deposit, the loan amount, and the remainder and that sum is the total purchase price.  Why and where and huh? for that extra 25K?  You had to have been told why you would owe or need to put in the extra money, and when you put money in, you get a receipt back stating the purpose of that money.  Please, tell me if you paid 25 thousand more for the house than you originally signed for!!!!!  You need to immediately call the title company and clear this up.  They are accountable for what they told you and what you paid for.  Please get back to me and end my own confusion, then perhaps I can tell you more.  If you really were misled or told that this money that was owed by the seller was due to be paid back to you, this is a legal issue.  As I am not a lawyer, I am prohibited from "Practicing Law Without a License", so I cannot tell you more than I already have until you get more details and I hear back from you. I am sorry you are going through this.  Did you purchase with an agent representing you?  If the answer is yes, then you should call your agent, or discuss it further with your agent's office owner or manager.  I look forward toyour next email, Karyn Foley