Liz,
You should be able to correct that. It could probably be a mistake by the escrow company. Instead of charging the seller for the delay, they charged you. Contact your escrow company and also review the addendum you signed when you accepted the deal. If you purchased an REO, the charges will specifically states who is going to be charged if there's any delay.

Charita King 562-276-8681

You signed a contract without properly reviewing it. Sorry to sound harsh, but realtors have their own agenda and you always need to look out for yourself when making a purchase of this magnitude. Having a lawyer review your docs before you sign is always a good investment.

Elizabeth,

Don't contact your title company. In California we use escrow companies. Your Realtor should contact the escrow company to see if he/she can work this out. If it is an REO property, your Realtor should have recommeded that you counter the Per Diem charge - that you would only pay if you're the reason for the delay. Now it is too late.

You will probobly have to pay, since you agreed to do this.

Best of luck,

Karen Miller

Yes? you should contact your title company right away.

I agree, your agent should have reviewed the closing statements prior to you signing.

I agree - your realtor may have been able to explain this page to you - the escrow officer having you sign should have explained that to you AND your lender should have been there to explain it to you....but all in all you as a buyer are repsonsible for reading anything- and that is anything at all - before you sign it.

I have used Per Diem’s when I’ve represented the Seller only to keep the buyers lender on his/er toes—as they sometimes drag their feet. Escrows rarely not closes because to the clients’ fault—buyer wants to buy, seller wants to sell—that is why you are in escrow, and that is classic real estate. In my 21 years of being a Realtor—I have never had an escrow not close!

While I agree—you did sign the contract—where was your Realtor? Why did he/she not explain what a Per Diem is? Ultimately, you are responsible but that is why you have a Realtor to explain the process to you.


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Hi Elizabeth,

It does sound like you are buying a real estate owned property or bank owned property. They typically put those per diem charges in so they make sure you are not dragging your feet and holding up the close of escrow. I would give your agent a call and also talk to the escrow company. There is not a regulatory agency to report this to as truly you should have read it before you signed it. And, the sellers can put that in a contract, that is something that happens quite often to make sure buyers perform.

The other agents are correct, you did sign the paper and it does not matter. You will be charged a per diem if you are the ones holding up the close of escrow. If you have everything in escrow when you are supposed to, and have all your inspections done, contingencies removed, then let the escrow company know the hold up is not you. Many times it really is the banks because they are so busy. I have yet to have a bank owned property close when it was supposed to and it was of no fault of myself or my buyers. The banks are inundated right now with REO's and short sales.

In any event, I would have the agent representing you call the escrow company and tell them you are not paying that fee and you should follow up with a call yourself. Check the estimated HUD 1 when you sign your loan documents. You will see your final charges on there. This is what you will get to show you how much money you need to bring in to escrow to close.

Good luck!

Joan Patterson, B.A., A.S.P., G.R.I., Realtor
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730
951-204-1864

Consult an attorney.

Although I understand your situation and sympathize with you, it bothers me when someone asks: "Do we still have to pay just because we signed this page by mistake?" That's what contracts are for.

On a much smaller level, I'm always amused (and slightly bothered) every fall when school begins and my son comes home with this bundle of papers from all his teachers--various "contracts" and "agreements" and other documents setting forth various expectations, grading procedures, and so forth. They all require a parent's signature. So far, so good.

Problem is, I want to read what I'm signing. My signature is important. My word is important. My commitment is important. My son just wants me to sign them. It doesn't matter to him what they say. Well, I do read them. And, once in a while, I add language to them, or cross things out. No, I'm not a lawyer. I don't pretend to be one. But if I'm signing something, I'm not only going to read it, but I'm going to make sure I agree with it.

In real estate transactions (and many others, too), I know there are a lot of documents to sign, and it's not even clear what some of them are. That's fine. You should have a lawyer and a Realtor on your team, among others. Ask them. Have them review the papers and the transaction. But when you sign your name, you're making a commitment.

In this case, consult an attorney and determine whether you are liable, based on the facts of the case.

Good luck

Hi, Elizabeth. It sounds like you may be purchasing an REO. The banks are notorious for throwing those per diem clauses in.

If your agent is on top of things and you are making sure that you are doing everything to meet your contingency deadlines you will probably be okay. However, Jimmy's suggestion of running this by a real estate attorney is a good idea.

Your agent needs to be in touch with your inspectors, lender and the escrow company on a regular basis to keep you from having to pay those fees.

I hope you have a smooth closing and don't have to worry about the per diem charge!

Hello Elizabeth,

Its very unfortunate that you did not notice this term of your contract, my advice would be to consult a Real Estate Attorney about your options.

Jimmy Hutchinson
Atmosphere Realty