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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 38863
Experience:  Texas Attorney for 30 years dealing in real estate
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I sold my home in PA Dec. 11, 2015. I was not at the closing

Customer Question

I sold my home in PA Dec. 11, 2015. I was not at the closing my agent represented me, transfer tax in my area is 2.5% split by buyer and seller. Title Company did not take out my share, I did not realize this. I never even saw the form that was used, the form I was given to review was different than what they used. Jan. 11, 2016 I receive a phone call and email that I owe $3200. in transfer tax, they made an error. They realized this when the title came back as unclean due to tax owed for transfer. The Title Company paid this then notified me. I feel this is a deal to come back a month later.Do I owe this? I was told by a friend who has been in title insurance for 30 years: In an insured closing meaning the title insurance company also insures the settlement or, there is separate coverage. It's up to the closing company to correct the error and pay any amounts of any mistake. An error would be in violation of settlement requirements.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. Ray here to help you.

I would argue they should pay here as it was their error.They likely have error and omission coverage and are just trying to get you to pay.I would not agree to do so.I would dispute it in writing to them demanding they pay based on their professional negligence.They should have collected it here and they paid it and are trying to see if you will pony up.I would not agree to do so and respond to them in writing disputing the amount claiming professional negligence.Odds are they agree here and let it go.

You are right to dispute this, title company made an error and should pay this.They were professionally negligent in this situation.It was their error here plain and simple and they should bear the cost.

I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.

If you can leave a positive rating when we are done it is always much appreciated.

Customer: replied 1 year ago.
Thank you for your quick response. The buyers did have title insurance. When I spoke with the title company I inquired if the buyers were notified of this error, I was told "no, they did not need to know as they paid their share of the transfer tax, you did not pay your share.". Am I correct to state that both the buyer and seller should have been notified of this error and the Title Company should pay the bill? Can they put a lien against me for not paying? Thank you in advance.
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Write Legal Documents. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Ray replied 1 year ago.

It would not be necessary for them to notify them since they collected from them.

I can send you a draft letter, I am not allowed to represent you.I will send you an additional services offer.

Thanks.

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