Closing Attorney Closed WITHOUT Receipt Of Funds !!!!!
Ok, I've just renovated and sold my first house, in Georgia. Buyer's lenders chose closing attorney. Yesterday we sat down at the table, at 10 am, signed usual paperwork, everything was going well. THEN the attorney casually notifies us that the funds had not yet been received and that she couldn't cut any checks at that time. By now it was around 11.30. We discussed the matter with our re agent, and all parties agreed to wait a while to see if funds would be wired soon. By 12 noon, we (my wife and I) decided to leave since we didn't have to be there until the wire was received.
We called throughout the afternoon, finally at 4pm we called to inform closing attorney that we would postpone handing over the keys til Monday since funds had still not been received and would not get into our bank til at elast Monday.
Guess what the closing attorney told us ? She'd already colsed with the buyers at 1pm that afternoon. Is this legal ? Ethical ? What's going on ? Anybody been through this ? Any advice would really be appreciated. Thanks in advance.
BTW, I guess in future I'm gonna get a fax from the closing attorney before turning up at closing with confirmation that funds are in place - no funds, no show. What a waste of a day ! I WANT MY MONEY !!!! LOL.
... You do not keep the deed and hand the attorney the deed and they hand you the funds it doesn't work that way...
it does in PA. we are not an escrow state. everyone sits in the room together, signs all the paperwork, and the buyer should walk out with the keys and seller walks out with their check. later that day or the next day the lawyer or title company takes the deed and mortgage to the court house for recording. in my case where I am a remote closer, I did 2 purchases yesterday and disbursed the funds but the title company won't get my paperwork back until Tuesday so the very earliest it will be to the court house is on Wednesday). the final check of liens (called a bring down here) should be done at the time of recording but seldom is.
Did you sign a deed?
... no funds, no show. ..
many times, the buyers sign their paperwork and then the attorney must fax certain docs to the lender who will in turn issue a funding number and wire the funds. the days of the check coming with the paperwork are less and less. the attorney must be on top of the lender constantly - squeeky wheel gets the oil & such - especially during month end when they are so very busy.
anyway, I would have taken my Deed back and told the attorney I would return when funds were wired and exchange that deed for the proceeds and would deliver the keys at that time.
We signed all the paperwork, in the mistaken assumption that at the close, the attorney would start writing checks...only she didn't. We were due to return later that day to complete, as far as we knew, but at the end of the day she told us she had gone ahead and closed anyway, without funds in place.
Nothing about the US legal, or any other, systems surprise me anymore, well, I thought nothing would surprise me anymore, lol, (I'm from the UK originally, I've been over here just over a year), but this seems totally out of order. As you say, the days of e-trade and wiring of funds are with us and aren't gonna go away, but if this is gonna happen on a regular basis to sellers, then surely the system needs to be tightened up, or is this just another case of 'well, we'll just have to put up with it, cos that's the way it is.' ?
If the money's not there on monday call the attorney and talk about "fraudulent conveyance" explain that your next call is to the bar association to file a complaint.
pete65,
Glad to meet you.
It is common for both the buyer and the seller to sign all the paperwork before the offical close of escrow.
The deed you signed is not recorded until the funds are, in your case in the attorney's hands.
Before your deed is recorded a final check is made for liens or encumbrances or a final title search, then the deed is recorded before any funds are released. You do not keep the deed and hand the attorney the deed and they hand you the funds it doesn't work that way.
You should have just asked the attorney what she meant by closing with the buyer, I would think this meant they signed the closing paperwork.
If the attorney recorded the deed prior to her receiving funds then you have a beef with the attorney, but not before then.
John $Cash$ Locke[ Edited by JohnLocke on Date 06/26/2004 ]
I would thik your options now are simple. If they have possesion, then you are out money. Sue them. Its the American way. The lawyer should be very familar with the process by doing business like that.
Is it a rental? if so, then all the allocations a screwed and they may owe you more money. If all funds were not received, then your mortgage was also not paid off, which is going to cost you more interest........