Way to lose $335,000 ? A case study

A recent closing transaction had all the makings of a dream closing. Luxury property. High price tag. Handsome title fees and realtor commissions. During due diligence, it was discovered the property had a major structural defect requiring $800,000 in repairs. The buyer notified the seller of their intention to cancel. In response, the seller notified the buyer the inspection period had expired and seller intended to pursue the $445,000 earnest money deposit due to breach of contract. To avoid prolonged litigation, a settlement was reached where the seller was released $335,000 of $445,000 of the escrow deposit. The contract was as-is, and though the question arose regarding the seller’s failure to disclosure the issue, parties reached an agreement to settle. Maintaining a strict deadline calendar for a transaction is the most important aspect of a transaction for both buyers and sellers. Timely notification of all property, title, survey and code/permit issues will keep a transaction on a smooth closing trajectory and avoid loss of funds. Here is sample deadline calendar that can be easily created: Questions on contracts or closings? Please call 305-271-0100×701 or info@theclosingcompany.net

The Closing Company is a full service title, escrow and settlement agency licensed and bonded in the State of Florida.  Our services include refinance, purchase, private lending legal representation, real estate law and litigation and real estate document preparation.   We assist clients in navigating the complicated and risky real estate market with solid legal and title expertise.  For more information, please contact info@theclosingcompany.net or 305-271-0100×701  Legal disclaimer: The Closing Company is not providing legal, estate planning, tax or investment advice. Please consult with a licensed Attorney for legal advice or before signing any legal documents. Please consult with a CPA for tax planning and advice.