Expert: liznarr - 4/22/2005

Question
My siblings and I are heirs to our parents estate.They all live out of state and I am the one local to the property in question. Our parent's home was paid for and they had no debt. On the day of closing I signed all the paperwork and the attorney and realtor said our proceed checks would be ready the next morning. They were not and 2 days have gone by with still no funds in hand. I am being told that the funds aren't ready due to a termite report needing to be revamped. I also have reason to believe that the realestate agent, who also sold the buyers house which "closed" the same day as our parents home, has knowledge of these buyers already living in our parents home without our authorization. Any advice will be helpful as this has been the most unprofessional transaction I have been through. I live in NC. Also, I received no paperwork at closing...I was told it too would be ready at time check was cut. Sincerely, Barbara Sherril

Answer
Hi Barbara,

Wow!  What a dilemma.  Events like this should never happen.

When was the termite report issued, and why was this not cleared up at the closing table?  Reputable attorneys know better than to allow parties to close on a transaction with unresolved issues.  It sounds like there was financing involved, so was the purchaser's loan fully approved at the time you went to the closing table?  Call the lender and demand answers.

Not knowing all the details, I would recommend SPEEDY actions on your part – and I do mean IMMEDIATELY— as follows:

1.   Call the closing attorney and inform him that if your CERTIFIED funds are not ready for you to immediately pick up, you will file a formal complaint with the NC Bar Association, TODAY.  Don't allow a secretary or other office personnel to give you the run-around – insist on personally speaking with the attorney.  Also, ask if the closing papers have been recorded yet.  If not, I would highly recommend your making a written request (hand delivered today) that no paperwork be recorded until you have your certified funds in hand and the termite letter issue is taken care of.  You are also entitled to copies of ALL paperwork signed at closing, and the closing attorney should never have let you leave his office without copies.  At bare minimum, I would insist on picking up copies of all paperwork today that were signed at the closing table.

Keys should never have been passed to the Purchaser, especially to physically take possession of the property, with this unresolved issue.  

2.   Next, I would call the Broker in Charge (BIC) of the Realtor who handled this transaction for you and demand answers.  Advise the BIC that if you do not receive an immediate response AND resolution, that you will be visiting the office of the NC Real Estate Commission today to file a written complaint and that your next visit will be to YOUR attorney to file an action, along with complaints as soon as feasible to the NC Attorney General, Better Business Bureau, any Realtor organization the company belongs to, and any others you can think of.

If you are unable to get your certified funds today after doing the above, you need legal advice.  Locate a reputable attorney (no requirement that he/she be a real estate attorney) and get legal advice on your options.  Try the suggestions above first.  If either works, you will save yourself attorney's fees.

Good luck to you, and please write again if you need additional help.

Regards,
Elizabeth Narr