Credit for Repairs After Close of Escrow

My question involves real estate located in the State of: California

I recently sold my home and closed escrow a couple weeks ago. I received a call yesterday from my agent letting me know that the buyer's agent didn't provide them with a signed addendum for the repairs the buyer requested; therefore, the $500 credit in repairs that I agreed to provide the buyer wasn't taken out prior to the close of escrow. My agent asked me to send the buyer a check for $500 directly. I asked why a signed addendum was required as I agreed to give them the $500 credit when I (and the buyer's) signed the Seller Response and Buyer Reply to Request for Repair (C.A.R. form RRRR, 11/14). My agent said that even though we signed the RRRR form that an addendum is required for escrow to credit the buyers the $500. With that said, here are my questions:

1) From my point of view, escrow is closed and I've performed my actions as the seller. Am I really accountable for providing the buyers the $500?

2) If the agents couldn't get the documents all together isn't it their error/omission; therefore, their E&O insurance would have to cover them for this screw-up?

3) I'm not comfortable sending the buyer a check directly. When I told the agent that if I was required to pay it that I'd only send it through the escrow office she said I can't do that because escrow is now closed and the escrow company can't send checks to either party.

I'm getting the feeling that the agents/escrow company screwed up and are now trying to pin it on me, when it's not something that was my fault.

Thanks for your help!

You got $500.00 more than you were supposed to receive from the sale of your house. Why would you not feel responsible to pay that back? You signed form RRRR did you not?

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Quoting gsxrmike

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I'm getting the feeling that the agents/escrow company screwed up and are now trying to pin it on me, when it's not something that was my fault.

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Pin what on you?

You'd have been out the $500 one way or the other.

I suggest you check your HUD-1 settlement statement and verify that it wasn't credited by the escrow company.

If it wasn't, then send the check. You aren't going to win this and a lawsuit even in small claims court will cost you more than the $500 when you have to pay the plaintiff's court costs on top of an interest bearing judgment.

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Quoting llworking

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You got $500.00 more than you were supposed to receive from the sale of your house. Why would you not feel responsible to pay that back? You signed form RRRR did you not?

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Yes, I did get $500 more than what was agreed to

Yes, I signed the RRRR

My only reason for stating that I feel I shouldn't have to pay is that it wasn't my fault as the seller. I did my duties and performed per the contract. It's ultimately an issue between my agent and the buyer's agent, as they collectively didn't get the necessary documents sent to escrow in time to deduct the $500 prior to closing; therefore, I don't feel that I'm responsible. Why do I now need to pay for their mistakes and lack of due diligence? If I performed like this in my job I'd be reprimanded, but as the customer I'm now responsible for paying? Doesn't add up to me...

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Quoting adjusterjack

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Pin what on you?

You'd have been out the $500 one way or the other.

I suggest you check your HUD-1 settlement statement and verify that it wasn't credited by the escrow company.

If it wasn't, then send the check. You aren't going to win this and a lawsuit even in small claims court will cost you more than the $500 when you have to pay the plaintiff's court costs on top of an interest bearing judgment.

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The closing statement doesn't show the $500 credit. See my response above. This is just one of many issues with this transaction where I had to be HEAVILY engaged and managing the details as the agents were disputing with one another throughout the transaction. This transaction was full of issues such as almost having to submit a NBP for release of contingencies, to repair requests that the buyer's didn't actually request (added by their agent without their knowledge), delays in wire transfers, etc., thus my frustration has led me to this point. I personally feel that the agents need to come together and cover this, as it's their screw up and escrow is officially closed; therefore, it's no longer my responsibility...

So you figure since they didn't keep the money and now escrow is closed you get to keep the $500 windfall. What an ethical person you are.


If you signed an accounting that shows they were to recieve the $500, you do owe it, morally, ethically, and legally. The fact the escrow could not credit the buyers due to some form not being present does not affect the proper accounting of the transaction which means yes, you do owe it

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Quoting jk

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So you figure since they didn't keep the money and now escrow is closed you get to keep the $500 windfall. What an ethical person you are.


If you signed an accounting that shows they were to recieve the $500, you do owe it, morally, ethically, and legally. The fact the escrow could not credit the buyers due to some form not being present does not affect the proper accounting of the transaction which means yes, you do owe it

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Wow, quick to judge on the "ethical" part of it. At the end of the day I'll give them the $500 if no one else will cover it, I'm simply stating that I feel the agents should have to cover this due to their lack of due diligence. Perhaps you'd understand better if you'd seen this numerous issues encountered throughout the transaction...

It's okay though, you can continue to be a judgmental person...

Well, you're the one trying to avoid your obligations, not me.

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Quoting jk

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Well, you're the one trying to avoid your obligations, not me.

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LOL, yes, I "magically" made the agents forget how to do the basic functions of their job so that I could avoid paying a measly $500...

Sometimes the principal of the matter is worth more than the dollar amount, and in this case that's how I feel. There's a lesson learned here for the agents, and if it costs them the $500 I can be sure of one thing, it won't happen to the next guy.

The agents are not in charge of the closing. It appears the escrow company is the who made the error. They should not have closed escrow without a zero balance accounting. The agents are not liable for the money unless the signed the closing documents stating the final accounting was proper? I'm thinking that was you and not the agents.

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Quoting jk

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The agents are not in charge of the closing. It appears the escrow company is the who made the error. They should not have closed escrow without a zero balance accounting. The agents are not liable for the money unless the signed the closing documents stating the final accounting was proper? I'm thinking that was you and not the agents.

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Per the agents this wasn't the escrow company's fault. I signed my documents (in person) several weeks prior to closing. My agent said that the buyer's agent didn't provide them with a signed addendum for the $500 in repairs prior to closing, thus why escrow didn't deduct it from the final closing statement. The buyer's requested that closing be moved up by two weeks, which we accommodated. Nothing of this was my fault, but please, continue to judge without asking...

You said the financial accounting included the $500 credit but due to the missing form the escrow company could not apply the credit. The error for not providing the form may very well be one of the agents fault but the escrow company should not have settled the account with an outstanding debit/credit they could not rectify so they should have stated to the agents that there is this outstanding credit/debit and the account cannot be closed out until either the $500 is removed from the deal or the proper paperwork is provided.

that does make it the escrow company's fault.

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So, actually the accounting the escrow company has (which you may have a copy of) should show an outstanding matter of $500. If so, then I would absolutely contact the escrow company and ask them take your $500 to settle the accounting

I never said it was your fault. I said it is your obligation.

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Quoting jk

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You said the financial accounting included the $500 credit but due to the missing form the escrow company could not apply the credit. The error for not providing the form may very well be one of the agents fault but the escrow company should not have settled the account with an outstanding debit/credit they could not rectify so they should have stated to the agents that there is this outstanding credit/debit and the account cannot be closed out until either the $500 is removed from the deal or the proper paperwork is provided.

that does make it the escrow company's fault.

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Nowhere in my threads did I ever state "the financial accounting included the $500 credit", so I'm not sure where you're getting that info from.

The $500 IS NOT on the final statement that escrow sent me. They had no idea that the buyers were supposed to receive a $500 credit. I signed the RRRR form, which as far as I'm concerned covered my agreement to pay them the $500 at close of escrow.

If the agents (mine and theirs) don't have the aptitude to get the proper documentation together prior to closing, and escrow closes the transaction, how does the burden then fall on me? That's my point in all of this, I should not be held accountable for the errors and omissions (or lack of attention to detail) by the agents, thus why I suggested telling them to use their E&O insurance...

Then color me embarrassed and let me apologize. I thought I had read it was. That will teach me for doing this on my phone.


So the question is; where did it go? Are you saying it was never applied to the accounting (by the escrow office)? I suspect my error was that you stated the escrow office could not apply the credit because the of the addendum was not provided but you also said the agreement to the credit/debit was in fact in the paperwork. I presumed (and still do) the escrow office did have documents addressing the credit/debit.

If the escrow office had the agreement, even without the signed addendum, I still see this as an escrow issue as they are responsible to gather the various paperwork and properly list each item. If they had documents showing there was this credit/debit then they should have inquired as to how it was to be reconciled since it could not be included in the accounting without the addendum.


Bottom line; if you signed documents agreeing to pay it, it is your liability. The closing of escrow does not mean errors discovered after closing cannot be dealt with.

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Quoting jk

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Then color me embarrassed and let me apologize. I thought I had read it was. That will teach me for doing this on my phone.


So the question is; where did it go? Are you saying it was never applied to the accounting (by the escrow office)? I suspect my error was that you stated the escrow office could not apply the credit because the of the addendum was not provided but you also said the agreement to the credit/debit was in fact in the paperwork. I presumed (and still do) the escrow office did have documents addressing the credit/debit.

If the escrow office had the agreement, even without the signed addendum, I still see this as an escrow issue as they are responsible to gather the various paperwork and properly list each item. If they had documents showing there was this credit/debit then they should have inquired as to how it was to be reconciled since it could not be included in the accounting without the addendum.


Bottom line; if you signed documents agreeing to pay it, it is your liability. The closing of escrow does not mean errors discovered after closing cannot be dealt with.

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No worries, just letting you know the facts.

The form I signed was an RRRR form (Sellers Response to Request for Repairs from Buyers). Apparently this form isn't enough for escrow to deduct the $500 from the net that I received (I'm not even sure if escrow had it or not).

You concluded your previous reply with "The closing of escrow does not mean errors discovered after closing cannot be dealt with." This is the type of response(s) I was hoping to receive. Do you have any legal jargon to back this up?

Simply put, unless there is a release signed at the time of closing releasing the parties from any possible obligation, the law does allow for an error to be corrected in most situations. barring some release as I spoke of I see no reason this error cannot be corrected if there was an agreement in place. Signing the paper does not show when the agreement was made. It shows when the agreement was reduced to writing. The agreement was made when both parties did in fact agree to it.