Lawyer Gave Away Money at Closing

Lawyer Gave Away Money at Closing

Battle Creek, MI · Member since 2019 · 18 posts · 13 votes

I just closed on the sale of a property in IL, which has to be done through a lawyer. The lawyer provides the title company with all of the numbers as to who needs to be paid and what the amounts are. The property is a condo and last year there was a special assessment levied ($600 a year for 2020,21,22,23). When I purchased the property in Nov. I paid the 2020 special assessment of $600. At or just prior to the closing, my lawyer finds that the buyer's lender hasn't figured this special assessment into the loan. Instead of contacting me and telling me of the problem, he decided to give the seller a concession of $2,250 to cover all of the special assessment through 2023. He didn't even tell me after the fact and the only way I found out was through auditing the Closing Disclosure. So, basically, the lawyer gave away $2,250 without asking or even having the courtesy to tell me about. 

How would you handle this? What recourse might I have?

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Attorney · Northbrook, IL · Member since 2017 · 719 posts · 549 votes
6y

@Michael Delmont I would definitely confront your attorney. I don't make any changes to the settlement statement without reviewing and getting authorization from the client. Not sure the recourse but they acted improper. I'm sure the defense will be they wanted to get the deal done for you and made a decision to get the closing completed because that was the only solution anyway. You had a right to know. 

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  • Attorney · Northbrook, IL · Member since 2017 · 719 posts · 549 votes
    6y

    @Michael Delmont I would definitely confront your attorney. I don't make any changes to the settlement statement without reviewing and getting authorization from the client. Not sure the recourse but they acted improper. I'm sure the defense will be they wanted to get the deal done for you and made a decision to get the closing completed because that was the only solution anyway. You had a right to know. 

  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    Seems like thats something to discuss before closing and not after.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    If there was nothing in the contract to cover the special assessment, then he should not have paid it to the buyer.  you would have reviewed and signed the documents which listed what was covered and should be transferred.  If it wasn't in that document, the lawyer should not have transferred it.

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