Error at Settlement

8 Replies

I received a spreadsheet from my realtor that showed what we would be getting back at settlement for specific selling prices. I did not receive any other documents showing what I would receive after closing. At the closing table we were asked to sign a form that was $8700 less than what we expected. Turns out that on our realtors spreadsheet, the 3% sellers credit was never subtracted from the bottom line resulting in this error. We felt our backs were against the wall and we finally signed after our realtor took $2000 off their commission. However there is still a matter of $6700 that we thought we were to receive at settlement. Is there anything that can be done at this point to make up that additional money? The agent and her broker say that nothing else can be done but I truly feel that a mistake was made costing us a lot of money. Any help would be greatly appreciated.

You should have been entitled to see a HUD1 prior to closing from closing attorney or title co.  I personally have never seen a spreadsheet come from a realtor prior to closing.  I always receive from closing attorney the day before.  

Promotion
BAM Capital
Multifamily Growth & Income Fund II
New High Yield (10%) Targeted MONTHLY | Midwest-focused Fund
Backed by institutional-grade apartments, strong sponsor track record, $450M AUM, over 4,000 units.
Invest Now

Some people have said that a settlement statement is binding but it's not.  You have recourse and now is the time to make noise and get what you deserve.

That said, the closing is when all parties have something on the line and that's when you need to have all your calculations and due diligence completed.  If something isn't right, you delay the closing.  I was once scammed for $2k at the closing by a seller who lived out of state.  I tried but was never able to collect from that piece of S&!t (his name is Dan Schmidt).

Your agent was giving an "expected net sheet", an estimation, not a guarantee.  In all honesty you should be doing the math yourself, and realize the $8700 credit wasn't applied.  You received the exact net you contracted for, plus $2k from the agent.

It sounds to me you are the seller and your realtor miscalculated the net proceeds amount because he forgot to incorporate the 3% sellers credit into his spreadsheet. If that is the case, then the amount you received is correct according to the contract you signed and the only mishap is the false temporary expectation created by the faulty spreadsheet. Ultimately, you received $2000 more than contractually agreed on. That is not bad and an expensive lesson for your realtor.

My main concern was not knowing until I was sitting across from the buyers at settlement. That spreadsheet was all I had to go off of. No other paperwork was received prior to settlement. 

@Jeremy Shupp

Your closing attorney should have sent you the closing statement a day in advance. His mistake for not doing so. Another realtor mistake for not being on the attorney's case. But again, you received the correct amount plus a handsome compensation for emotional hardship. Time for a new seller's agent.