What happens when a seller is short to close and has failed to produce a clear title?

Asked by Nightmare, Cleveland, OH Wed May 28, 2008

30 days ago we went to the closing table and discovered hours later that the seller was short to close. Seller gave us the keys to move in while she complies with the purchase agreement....30 days later still no clear title and no word from the title company as to when this deal will reclose. What are my rights? We want this house!

Help the community by answering this question:

+ web reference
Web reference:


Jed Lane, Agent, Petaluma, CA
Wed May 28, 2008
What a mess. You should contact an attorney to be sure that you are protected. You can call the broker/manager of your agent and speak with them if you haven't already done that. I can't imagine this occurring in my office. As the manager I'd be aware of the situation and I'd be calliing you and the other broker.
So many other questions. Where is the money from your loan. Are you being charged interest on a loan that is sitting in escrow.
You really need an attorney! How can tthe title company let you or anyone esle for that matter believe the sale concluded when it didn't. It is pretty clear that you don't own the house at this point because that will only occur when it is recorded with the county.
0 votes
David M. Chi…, Agent, Uniontown, OH
Wed May 28, 2008
I cannot believe your realtor or someone at the title company cannot expalin what happened here! Why does the seller need a loan? What does it say in your contract about possession? You may need a real estate attorney but, first, I would call both agents brokers (their boss with alot on the line if you file a complaint with the Ohio Board) and demand an explanation. Good luck.
Web Reference:  http://www.liveinakron.com
0 votes
Nightmare, Home Buyer, Cleveland, OH
Wed May 28, 2008
Seller was short to close. Supposedly the loan is moving forward for the seller. BUT the seller's agent is trying to force us to sign an early occupancy notice stating if the seller's loan doesn't close we have to vacate premises within 10 days.

We've done our part and went to the closing table. How can the seller not "HAVE" to adhere to the contractual purchase agreement? Isn't it fraud when you are told you can own your first home if you obtain financing and upon obtaining that financing and actually getting to the closign table be told you have no home?!! How is that legal??!!

Carl Monday here I come!
0 votes
Don Tepper, Agent, Burke, VA
Wed May 28, 2008
First, get a good lawyer.

Second, ask your Realtor what the status is.

Third, if your Realtor doesn't know, ask the seller what the status is.

Fourth, I'm unclear whether this was an actual short sale, or whether the seller was expected to bring money to closing, and didn't. I'm not a lawyer, so this isn't legal advice. However, if it was a short sale and payments aren't being made, it's headed to foreclosure and soon the bank will own it. If it isn't a short sale and the seller's trying to round up the needed money, is the seller behind on payments? If so, it'll progress to a foreclosure and the bank eventually will own it. If the seller is current on payments, then you're a tenant in the property. (If so, do you have a lease? You should.)

You really have to determine what's happening to the ownership of the house while you're sitting in it. And, in any case, you need to resolve this as soon as possible.

So: Lawyer. Realtor. Seller.

Hope that helps.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more