Legal Question in Real Estate Law in North Carolina

Settlement Statement Correction

We sold our house in NC and agreed to provide the buyer with a home warranty ($450 to be paid at closing) - we were not present at the closing and the $450 for the warranty was not deducted from our proceeds (realtor signed closing statement). 60 days post closing we received a note from the closing attorney asking for $450. While we did agree to provide a warranty - we paid over $12,000 in realtor commissions/attorney fees and we believe that they should have noticed and corrected at closing. At this point are we legally obligated to pay for the warranty?


Asked on 8/25/07, 4:43 pm

1 Answer from Attorneys

Scott R. Jay Law Offices of Scott R. Jay

Re: Settlement Statement Correction

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

If you gave the realtor a power of attorney to sign the documents at closing on your behalf, you are responsible for anything the realtor signed. Without seeing the instruments, I am confident that there was an Affidavit regarding errors and ommissions or similar affidavit which says that if any mistakes or ommission were made, the Seller agrees to cooperate in resolving the same. Although it was the closing agent's error in not putting this charge on the closing statement, you would be responsible for the monies if anyone chose to sue you.

Scott R. Jay, Esq.

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Answered on 8/25/07, 5:41 pm


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