Does buyer owe title fees upon a cancelled contract?

4 Replies

I'm a buyer, and I recently got a property under contract, but I am not going through with the purchase after the appraisal came back significantly lower than the agreed upon purchase price.  Neither I nor the seller used a realtor, so I had a lawyer write up the contract and had his title company research the title.  The title company is charging me for preparation of the contract, purchase and review of title abstract, and client communication.

Is this something that I typically would pay if a contract was not completed?  The amount he's charging me is a bit less than the amount stated in the contract that the seller would have had to pay him for the contract set up.

It seems reasonable, but I thought it was worth asking who's cost of doing business this should be - the lawyer/title company, or the buyer?

Yes. You hired someone to perform a service thst they performed.  Interestingly enough, had you been using an agent, you likely would have got the fees waived if they did business regularly with that title company.

@Russell Brazil   YUP exactly right the agent write the contract  no charge they get paid for a closing.

and a good agent or higher producing agent the title company just writes off the title report.. I have never been charged for a title report.. nor has any of my clients.. plus title and escrow companies don't charge by the hour.. 

It’s not customary for the title company to prepare the contract for the buyer in Maryland, so it’s no surprise that the buyer is being charged fees here. It actually sounds like the buyer engaged an attorney... and if so, there is a written fee agreement that would apply.

I agree that the title search (residential) would typically be waived in a no-close scenario... but this fact pattern seems to be a bit different than that.