query via e-mail on the subject of cancellation fees

Hi Diane,

I found your blog when I was doing some research.

We were recently involved in a home purchase transaction, which failed to close.

We just received a bill from the closing attorney which included
$1324.06 for title commitment, which is the exact amount shown on the
HUD statement for title insurance. Since there was no closing should
we be charged this entire amount. I could understand being charged for
the labor involved but not the entire amount.

We are in West Virginia if that make a difference, and the company is
Old Republic Title.

Thanks
Danny

Hi, Danny:

Let's see if we can get a response from a title agent or attorney familiar with WV. I am a firm believer that a cancellation fee should be charged for services rendered when transaction fails to close. The question is - what are the services for which you are being charged?

I would ask for an itemization of services performed. For certain, you should not be paying for title insurance because a policy is not being issued. It would be fair to charge for abstracting, examination, perhaps clearance of or work to attempt to clear title problems. There may have been document preparation and courier fees.

So, ask for more info. Ask for an itemized invoice.