Home Buying in 11211>Question Details

Hottgyrlz, Home Buyer in Brooklyn, NY

Who pays title search fee if the deal fall through. It took eight months to tell me I was declined for a mortgage now the lawyer says I have to pay

Asked by Hottgyrlz, Brooklyn, NY Thu Feb 28, 2013

I was in the process of purchasing a condo 4/2012 I put a down payment of $9118.00, in 12/2012 I was informed that I was not approved, within three months of the deal I called the lawyer and told him look they are taking entirely too long to come up with a decision it sounds fishy, he never said anything about a title search being done or any other accrued fees now that the deal fell through he says I have to pay a title search, I want to dispute the charge and I want to report him to the grievance committee and the bar association for misleading practices

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6
Javier Meneses’ answer
Did you sign anything that committed you to covering any of these fees? I'm sure other Real Estate professionals might of had different experiences, but in my 8 or 9 years in this business, I've never seen a buyer whose deal died, pay any sort of title fees.

Most likely, your attorney ordered the title, not you. I would say, if you didn't sign anything committing you to cover any of these fees, them you shouldn't have to pay. I would probably consult another attorney if I were you.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
2 votes Thank Flag Link Thu Feb 28, 2013
I don't see these fees on any page of my contract, the sponsor of the development sent a cancellation of contract refunding my full down payment of 9118.00 I call the lawyer to tell him to mail the check he calls back and says I have to bring a check in the amount of the title search to receive my down payment
Flag Thu Feb 28, 2013
Dear Hottgyrlz:

I am sorry about your unfortunate experience. Based on the information you provided, your attorney may not have done anything wrong. We would need more details to make a better a determination. Sometimes times mistakes happen, a mistake is a mistake. The more important question is if there was malpractice or unethical/illegal behavior. The matter would have to be investigated further.

In my 20 years of experience as a real estate agent, I find that most of the time the purchaser's attorney does not order the title report until the purchaser get a mortgage approval from the bank. Having said that, often times there can be a reason why an attorney would want to order the title sooner but is is rare.

I am curious how you came to hire your attorney? In the future, when hiring an attorney to help you with a real estate transaction, keep three things in mind, it is good if your attorney is located in the area where the property is, has some experience and specializes in real estate. If your attorney meets those three criteria, usually you will be in good hands.

If you want to discuss this further or need anything else real estate related, please contact me direct.

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
1 vote Thank Flag Link Thu Feb 28, 2013
I was never approved for a mortgage never informed of ordering a title search in such amount and I choose an atty that was recommended by my realtor , he does have many contract with this development so he should know when and if a title search should be ordered so quickly, I've waited 8 months for a decision DENIED and he should have waited for a DECISION from the bank before ordering a title
Flag Thu Feb 28, 2013
Hi,

In New York, paying for the title search is the buyer's expense. Often, the buyer's attorney waits until all contingencies are met before ordering the title search to be sure the transaction will close. Some attorneys do order the title search as soon as the contract is signed to be sure that no time is lost in waiting for the search and resolving any issues it reveals.

Michael Richman
Associate Broker
Kian Realty NYC
450 7th Avenue
New York, NY 10123
917-991-2528
mrichman@kianrealtynyc.com
0 votes Thank Flag Link Sat Mar 2, 2013
It appears your attorney was doing his job, generally the title search is the buyer's expense; therefore consider negotiating the charges with him....
0 votes Thank Flag Link Thu Feb 28, 2013
Even tho the I'm not purchasing the condo I wasn't approved for the mortgage shouldn't he have waited til the loan app was approved before he went and obtained thing so quickly and shouldn't he have contacted me informing me that he was ordering a title search in the amount of such, after the loan is approved you can go ahead and order anything needed because I would still have 30 days to close? I've been thru numerous contract and the deal hasn't gone thru and I NEVER paid any title search fee
Flag Thu Feb 28, 2013
Hottgyrtz,

Based on my experience, the buyer's attorney always orders the title report for purchases and bills the client/buyer for searches, surveys, recording fees etc. Typically, all fees including the attorney's are discussed when you retain him/her to represent you.

I'm curious as to why your application was denied. Many of my clients were denied by their first lender, which is usually one of the big-name banks or a credit union. Though great for checking, savings and other financial services, these lenders are typically the most conservative when it comes to mortgages. You should get a second opinion, if you're still interested in the same property or another one. There is no cost or obligation to you. I have extensive experience assisting first time buyers throughout NYC and nearby suburbs to become successful homeowners. For more info or assistance, I can be reached directly at 917.699.0183. Follow me on twitter @mdenniston247.

I value your feedback so please hit the thumbs-up or best answer tab, if my response was helpful.

Thanks!

Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973
Mdenniston@RHFunding.com
http://www.rhfunding.com
.
0 votes Thank Flag Link Thu Feb 28, 2013
I was denied based on debt to income ratio was above 50 I wanna say, but if I was denied a mortgage why would the atty order a title search without informing me or telling me I would foot the bill for his premature ordering of a title search, it's been eight months waiting on a decision from the bank he could have waited I believe because the deal fell through that he wants a fee I would have been satisfied with that but to pay for something I'm not gonna reside in for the next person to pay the same title search at their closing is wrong
Flag Thu Feb 28, 2013
Thank you for your questions! We can definitely help you! Please call us at the office @ 1-718-875-8899 so we can schedule an appointment ASAP. We are open 7 days a week Monday Through Friday 9:00 AM to 9;00 PM Sat & Sun 10:00 AM to 7:00 PM We are member of Brooklyn New York MLS & Manhattan REBNY MLS
For more listing visit:
http://www.BrooklynRealProperty.com,


Office 1-718-875-8899
Brooklyn Real Property, Inc.
Downtown Brooklyn Office
389 Atlantic Avenue (Bet: Bond & Hoyt Street)
Brooklyn New York 11217
1-718-875-8899
Canarsie Office
9201 Flatlands Avenue (Corner of East 92 Street)
Brooklyn New York 11236
1-718-272-8988
0 votes Thank Flag Link Thu Feb 28, 2013
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