ahem...WAH? That's not the way they do it in their office? Seriously?

Jiminy crickets.  We just had a closing and found out at the closing table that the seller wanted to reserve oil, gas, and coalbed methane rights.

We had carefully reviewed the sales agreement and found it silent on the issue.  We sent the deed to the seller and agents prior to closing for a review. Nobody raised the issue.  The only reply was that the sale price had changed and no one had given us that information. We made that correction and moved forward to closing.

It wasn't until the deed was presented at the closing table that the seller, thank heavens, asked if he was reserving these rights. He was told that no reservation language had been added to the deed and so that any rights he had were being transferred to the buyer.

The seller said that was not his intention and interestingly, the agents said that's not how it works in their office.  They told our closer that in their office the sales contract and deed do not convey these rights. WAH?

They are using the standard PAR agreement of sale.  They failed to use the Oil, Gas, Mineral addendum which was created for this purpose.  They also failed to add any language in lieu of the addendum speaking to the desire of the seller to reserve these rights.

BTW At the closing table, this appeared to be the first time that the buyers were hearing of the reservation.  What were these real estate agents thinking?  How many other transactions have passed through their office without clarity on oil, gas and mineral rights?

Bottom line, folks, silence doesn't do it.  If you intend to reserve something - anything - you have to add language expressing the reservation.

What do you do when you find errors after closing?

Hello Diane,

I bought a house in Florida 5 years ago. I recently discovered that my HUD is incorrect. I do fault myself for not paying more attention even though I was being rushed through the process by the title company on the day of closing.

It has become apparent that my purchase payment is $7,000 more than my purchase contract and the property address is also incorrect. The address and parcel ID on the Warranty Deed is also incorrect although the legal description is correct. What can I do about this now?

I thank you in advance for your time and look forward to your reply.

M

Hi, M:

I would write a letter to the company who handled the transaction with a copy going to your mortgage lender and real estate agent, if applicable.  Ask for an explanation of the $7000 purchase payment discrepancy.  There may have been a misunderstanding which their explanation will resolve.  If, however, they cannot explain it and you believe there was an error or some kind of fraud, you should follow with another letter which would be a formal demand for correction.  I always believe a demand letter should be sent via certified mail.  This shows you are serious.  If you aren't satisfied, you could hire an attorney to assist or perhaps talk with the Florida attorney general's office.  They should have some formal mechanism for handling consumer complaints.  It works like the Better Business Bureau but has teeth.

As for the deed, I would request that whoever insured your purchase transaction - the title company - create a corrective deed.  In my opinion it could be a deed from you to you simply to correct the parcel ID and address.  Since the legal description is correct, I don't see any reason they would have to go back to the seller.

You can handle both of these problems in the same letters, however, be sure to keep it easily understood that there are two issues and that you want them both resolved.

Good luck and I hope this helped.  ;)

Diane