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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 36990
Experience:  16 years real estate, Realtor. Landlord 26 years
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Can an attorney invoice a borrower for title work and legal

Customer Question

Can an attorney invoice a borrower for title work and legal services if a mortgage loan does not close? What about a case where clear-to-close received, loan docs are drawn and the borrower reviews the HUD and states that they are not going to proceed?
Submitted: 10 months ago.
Category: Real Estate Law
Expert:  AttyHeather replied 10 months ago.

Hi! I'm Heather. I've been a practicing attorney for the last 15 years, and I'd be happy to assist you for informational and educational purposes.

Expert:  AttyHeather replied 10 months ago.

Was the attorney retained as a private attorney for the buyers or sellers, or is the attorney an employee or agent of the title company?

Customer: replied 10 months ago.
GA is an attorney title state. And a state that gives the borrower the right to choose the attorney.
Expert:  Barrister replied 10 months ago.

Hello, different expert here. My name is ***** ***** apparently your other expert was called away so I will try to help.

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Can an attorney invoice a borrower for title work and legal services if a mortgage loan does not close? What about a case where clear-to-close received, loan docs are drawn and the borrower reviews the HUD and states that they are not going to proceed?

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If the borrower selected the attorney and retained him to perform services for the borrower, when those services are completed, the contractual agreement between them has been satisfied with the attorney's performance of those tasks they were hired to do.

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So regardless of the outcome of the loan, the attorney has spent his time and effort performing under the service contract that was entered into so is therefore entitled to be paid for their services.

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I used to be a closing attorney for 4 different lenders and have never seen an attorney make his payment contingent on whether the loan closed or not.. When the attorney does the work, he is entitled to be paid.

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thanks

Barrister

Customer: replied 10 months ago.
If that is the case, who is responsible for paying the invoice the lender, broker, or borrower? In my situation, the borrower backed out hours before loan closing and the attorney is asking to whom should the invoice be sent.
Expert:  Barrister replied 10 months ago.

If the borrower was the one who hired the attorney, then he is the one who pays the attorney. Similarly if the lender or broker hired the attorney, they are on the hook unless the attorney agrees to waive his fees.

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Whoever initially hired the attorney is the one who has a contract with him to pay for services rendered.

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thanks

Barrister

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