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LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 37639
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I was charged rate lock extension fee, before my closing date

Customer Question

I was charged rate lock extension fee, before my closing date of the loan, is that legal?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  LawTalk replied 2 years ago.
Good afternoon,
I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.
A fee for a rate lock extension is validly charged when the lender "agrees" to grant the extension. The charge is incurred after you or your agent ask for the extension and it is agreed to---regardless of the fact that the original rate lock may still be in effect. In other words you are not agreeing to pay a fee for the extension "if" you need it, but instead, when they agree to grant it following your request.
I understand that you may be disappointed by the Answer you received, as it was not particularly favorable to your situation. Had I been able to provide an Answer which might have given you a successful legal outcome, it would have been my pleasure to do so.
If you have additional questions, you may of course reply back to me and I will be happy to continue to assist you further until your questions have been answered to your satisfaction.
Kindly take a moment to rate my service to you based on the understanding of the law I provided. Please understand that I have no control over the how the law impacts your particular situation.
Thank you,
Customer: replied 2 years ago.
i wasn't aware of the rate extension lock extension request, by the agent and i didn't agree with it. should he(the agent) let me know that we need rate lock extension and the cost associted with it?
thank you
Expert:  LawTalk replied 2 years ago.
Good morning,
While of course there should have been communication between your agent and you regarding the rate extension, your agent legally has the right to bind you to an agreement to pay for the extension of he/she requested it---even without your knowledge or permission.
Yes, you should have been told in advance, but that doesn't legal effect the obligation you had to pay the fee to the lender.
I guess you could technically sue your agent for doing what they did. However, I suspect they asked for the extension to protect you and not simply to needlessly spend your money. But you can certainly ask your agent to shoulder the bill if you feel that strongly about it.
You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.
Please remember to rate my service to you when our communication is completed.
I wish you and yours the best in 2015,

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