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  1. #1
    Join Date
    Nov 2015
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    9

    Question 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!

  2. #2
    Join Date
    Oct 2006
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    15,619

    Default Re: Credit for Repairs After Close of Escrow

    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?

  3. #3
    Join Date
    Mar 2013
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    17,135

    Default Re: Credit for Repairs After Close of Escrow

    Quote 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.
    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.

  4. #4
    Join Date
    Nov 2015
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    9

    Default Re: Credit for Repairs After Close of Escrow

    Quote 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?
    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...

    Quote 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.
    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...

  5. #5
    Join Date
    Jan 2006
    Posts
    38,728

    Default Re: Credit for Repairs After Close of Escrow

    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

  6. #6
    Join Date
    Nov 2015
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    9

    Default Re: Credit for Repairs After Close of Escrow

    Quote 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
    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...

  7. #7
    Join Date
    Jan 2006
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    Default Re: Credit for Repairs After Close of Escrow

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

  8. #8
    Join Date
    Nov 2015
    Posts
    9

    Default Re: Credit for Repairs After Close of Escrow

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

  9. #9
    Join Date
    Jan 2006
    Posts
    38,728

    Default Re: Credit for Repairs After Close of Escrow

    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.

  10. #10
    Join Date
    Nov 2015
    Posts
    9

    Default Re: Credit for Repairs After Close of Escrow

    Quote Quoting jk
    View Post
    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.
    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...

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