Real estate she is a changing…
Just like the spider (isn’t that the biggest spider who’ve ever seen?) waiting for its prey I learned something today that is happening in Southern CA and may reach our area.
Dont be caught unaware just in case your Realtor is not familiar with this new practice
Here in the Sacramento and surrounding areas we have Title Companies to handle our Escrow when a house sells. That’s where you typically go to sign all the papers on your house that you are selling and when buying a home.
In Southern CA, there are two separate entities Escrow Companies and Title Companies. And therefore seems to me to be twice the cost associated with closing on a house. That’s not what this article is all about but I couldn’t help but comment on double spending in Southern CA. Well, that’s not the worst of it
A fellow friend and Realtor in San Diego, Roberta Murphy of Luxury Home Digest recently helped a Home Buyer who decided to back out of the contract. The Home Buyer backed out during the disclosure period. All well and good, one would think not so in this case.
Apparently, the Escrow Company decided to exercise their right to assess the Home Buyer $1,115 due to the cancellation of escrow. They assert that this is their cost and they have a right to impose it upon the Home Buyer for cancelling.
Title Companies do have that right, which quite a few Home Buyers and Realtors are not aware of. I have never seen anyone exercise this privilege but it is possible.
This seems to be a way of Title and Escrow Companies recouping some of their losses. We all have losses in Real Estate but that’s just part of being in business or at least for some of us it is. Oh, what a web they weave…
Is this just the start of a new way to generate revenue? My,my, my!
Roberta and I agreed that from now on when writing a contract for a Home Buyer it will be imperative that we include language that prohibits any Title or Escrow cancellation charges to our clients.
Hope your Realtor knows about this so that you aren’t saddled with an extra charge you weren’t planning on.