My realtor messed up our contract. Three days from closing and we can t close now!?

Question

My realtor is kind of new. When we sat down to write up the contract, we asked for closing costs to be paid by the seller. We stated that all we wanted to be paying at the closing table was our down payment. I got my closing disclosure last night and it s showing that we will pay $5,800 more than expected at closing.
I called her immediately and she said that I never said that. My wife and I both stressed the importance of the buyer paying all closing costs when she wrote up and had us sign the contract. As we were signing that day, I remember asking why a particular part meant. "Does this mean we will not be paying any closing costs?" Her reply was "yes."

We do NOT have the $5,800 needed to close.
What is my course of action from here? Renegotiate the contract? This seller has already had three contracts fall through late in the process and is probably not going to be very happy to hear about this.
I m shaking I m so mad!

Answer 1

There are certain closing costs that you have to pay as the buyer. The seller can issue you credits or lower the cost of the house to compensate.



Regardless, even though your realtor did not write up the contract correctly, it was your responsibility to be sure it was correct before you signed it. Now that it has been accepted by the seller with you paying closing costs, you are bound by it *unless* the seller agrees to pay the closing costs.



If you don't follow through with the closing, it is possible that you will be sued by the seller to perform. At the very least., you will owe the realtor's commission and all the fees/costs that have been incurred by the lender.



Good luck! You might want to consult an attorney on this.

Answer 2

You are actually in trouble here and stand to lose your good faith deposit if not being sued for more if you really are unable to close. The bottom line is that you had the responsibility to read and understand the contract and if it did not include details about seller paying closing costs, you shouldn't have signed it.



That being said this situation might be able to be resolved if the appraisal came in higher than the contract price by renegotiating the purchase price with the seller paid contingency making the seller net the same amount from the sale. You can only raise the contract price (with agreement) to the price of the appraisal (which often ironically comes in exactly at the contract price).

Answer 3

You are actually in trouble here and stand to lose your good faith deposit if not being sued for more if you really are unable to close. The bottom line is that you had the responsibility to read and understand the contract and if it did not include details about seller paying closing costs, you shouldn't have signed it.That being said this situation might be able to be resolved if the appraisal came in higher than the contract price by renegotiating the purchase price with the seller paid contingency making the seller net the same amount from the sale.

Answer 4

You have a goodly problem here. Even if the realtor did not write up the contract as you desired, YOU signed it, indicating that you agreed with the contract. Thus, you are bound to what you signed. You can TRY for a renegotiation of the terms, but the seller is in the driver's seat, now that you signed. You can be sued for specific performance of the contract if you fail to close. Next time, READ what you are about to sign.

Answer 5

Next time read the contract before signing. You really can't prove anything since it's not in writing. You can amend the contract but I doubt the seller is going to be willing to come off with $5800.00 & have to wait another 30 days to close.

Answer 6

If you have not paid ANY retainer or down payment, just walk awsy. Sorry, but you need to find a NEW realtor that has some common sense.



But understand that the SELLER has to agree to paying th costs, too, so you may have trouble finding that.



My advice: WAIT until you have another $10,000 saved up for a down payment.

Answer 7

Perhaps it's just a typo but you state here "buyer paying all closing costs." Either way you apparently didn't read the contract before you signed it. Since you have received the CD (closing document) indicates that you were approved for the loan. But most lenders will confirm with the buyer, prior to approval, that the buyer has the needed funds to close. At this point all you can do is notify the lender that you don't have the closing funds and ask them if they can withdraw the loan approval. Otherwise you will forfeit your deposit.

Answer 8

Your real estate agent completed a real estate sales contract. You are required to sign this real estate sales

contract prepared by your real estate agent,



Prior to signing this real estate contract, you are required to read this contract. You did not read your real estate contract, however, you signed your real estate contract.



It does not matter what is listed on the real estate sales contract, you signed the contract, and the seller accepted the real estate contract you signed.



Now there is a valid legal contract in place.



You now want to alter or change this valid contract for some reason. In order for this contract to be altered or changed, all signers to this contract must agree to these changes and alterations.



If you are under the impression that you would simply renegotiate this contract, this is a mistake on your part. The sellers would be pretty lenient, if they would decided to renegotiate this contract that would cause them to pay more for the closing of this transaction.



In the renegotiation you are asking the sellers to pay an additional $6k out of the proceeds they would get once the transaction close. Would you be willing to pay an additional 6K to close a sale transaction on the house you were selling?



Closing cost are normally divided a payed by the seller and buyer. The seller is not required to pay for all closing cost, unless they agree to in the sale contract. Most sellers never pay for all closing cost.



#1. Non recurring closing cost (normally paid for by seller)



escrow and title closing fees.



#2 Recurring closing cost ( normally paid for by the buyer)



prorated taxes, annual insurance premium, mortgage points and fees as well as the down payment



If you fail to live up to the terms of the contract, you signed, you would be sued by the seller (s) for nonperformance of the contract. Your real estate and the real estate agent of the sellers could also sue your for not paying the commission earned by each real estate agent.



I hope this has been of some benefit to you, good luck.





"FIGHT ON"

Answer 9

Take everything real estate agents say with a grain of salt. Their sole focus is to close the deal and earn a commission. Knowing that now doesn't really do you any good. If you back out, you may forfeit your down payment. A law suit against the broker won't go anywhere if you have nothing in writing.

Answer 10

Technically the real estate agent is not drafting a legal contract but assisting in filling out a sales contract tailored to your state laws. But in the end it falls upon you to fully review and understand each provision,



Now if a lawyer had reviewed or drafted the contract then there would be a fiduciary duty upon the lawyer

Answer 11

Are you sure that the seller agreed to pay the closing costs?

Most of the closing costs are the buyers responsibility, not the seller. The seller is under no obligation to accept the offer. And the costs will make your offer that much less attractive. Since these fees can run up to 5% of the price of the house, it is a significant discount that most sellers will not want to offer

Your choice is to either renege on the offer or pay the closing costs.

Answer 12

First report the realtor. Do not plan on the seller agreeing to pay any closing costs.

What advice is your lawyer giving you? That is why you hire him.

Answer 13

Not clear why you're upset if you "stressed the importance of the buyer paying all closing costs" since that's EXACTLY what you got. You're the buyer. That's what you asked for, that's what you signed. A bit late to reconsider whether you also needed to have a lawyer help you with it.

Answer 14

are you sure that the seller agreed to pay the closing costs?

most of the closing costs are the buyers responsibility, not the seller... the seller is under no obligation to accept the offer... and the costs shall make your offer that much less attractive... since these fees can run up to 5% of the price of the house, it is a significant discount that most sellers shall not want to offer

your choice is to either renege on the offer or pay the closing costs...

Answer 15

if you didn't understand what you signed, the legal document that you have a copy of that is your problem and anything that results in your lack of understanding is your problem

if the agent negotiated the contract correctly there's no problem with the agent

Answer 16

are you sure that the seller agreed to pay the closing costs?

most of the closing costs are the buyers responsibility, not the seller... the seller is under no obligation to accept the offer... and the costs shall make your offer that much less attractive... since these fees can run up to 5% of the price of the house, it is a significant discount that most sellers shall not want to offer

your choice is to either renege on the offer or pay the closing costs...

Answer 17

if you didn't understand what you signed, the legal document that you have a copy of that is your problem and anything that results in your lack of understanding is your problem

if the agent negotiated the contract correctly there's no problem with the agent

Answer 18

are you sure that the seller agreed to pay the closing costs?

most of the closing costs are the buyers responsibility, not the seller... the seller is under no obligation to accept the offer... and the costs shall make your offer that much less attractive... since these fees can run up to 5% of the price of the house, it is a significant discount that most sellers shall not want to offer

your choice is to either renege on the offer or pay the closing costs...

Answer 19

if you didn't understand what you signed, the legal document that you have a copy of that is your problem and anything that results in your lack of understanding is your problem

if the agent negotiated the contract correctly there's no problem with the agent

Answer 20

are you sure that the seller agreed to pay the closing costs?

most of the closing costs are the buyers responsibility, not the seller... the seller is under no obligation to accept the offer... and the costs shall make your offer that much less attractive... since these fees can run up to 5% of the price of the house, it is a significant discount that most sellers shall not want to offer

your choice is to either renege on the offer or pay the closing costs...

Answer 21

if you didn't understand what you signed, the legal document that you have a copy of that is your problem and anything that results in your lack of understanding is your problem

if the agent negotiated the contract correctly there's no problem with the agent

Answer 22

not clear why you're upset if you "stressed the importance of the buyer paying all closing costs" since that's exactly what you got... you're the buyer... that's what you asked for, that's what you signed... a bit late to reconsider whether you also needed to have a lawyer help you with it...

Answer 23

Seller is probably not renegotiating at this point. What the contract says is what matters.

Answer 24

if you didn't understand what you signed, the legal document that you have a copy of that is your problem and anything that results in your lack of understanding is your problem

if the agent negotiated the contract correctly there is no problem with the agent

Answer 25

COMPLAIN to the realtor's boss!

Answer 26

seller is probably not renegotiating at this point... what the contract says is what matters...

Answer 27

read what you sign, you are on the hook.