Taurus Firearm Forum banner

1 - 20 of 24 Posts

·
Registered
Joined
·
21,111 Posts
Discussion Starter #1
So, PH's father closed on his house last week, got the check last Tuesday and deposited it. Yesterday his banker calls and said the Title Company cancelled the check.

WOW.

Called my father, broker for 40 years, and he's never heard of that. PH's step father hasn't ever heard of that, let alone PH's father's banker.

Banker is going to look into it today.

I think we have a good guy investigating it. Not only is he a personal friend he's also:

VP of the Bank
Lawyer and
Municipal Judge
 

·
Registered
Joined
·
2,222 Posts
Every time I've closed, a cashier's or certified check was required. Title usually doesn't transfer for a month or so.
 

·
Super Moderator
Joined
·
17,717 Posts
Holy crap! They can't do that... I'd file a complaint with the Texas Department of Insurance. Even if you work it out.
 

·
Registered
Joined
·
12,813 Posts
Did the Title Company give a reason for canceling the check? Did they find something wrong with the title at the last minute?
 

·
Registered
Joined
·
21,111 Posts
Discussion Starter #5
Looking into it today but the contract was executed and signed by all interested parties last week. Any mistake is directly on them at this point.

Did the Title Company give a reason for canceling the check? Did they find something wrong with the title at the last minute?
 

·
Registered
Joined
·
12,813 Posts
The only reason I could think of a Title Company doing something like this is to save their reputation. Could be something surfaced that made them doubt the validity of the title. Still, you think they would call before taking action. Or maybe they found an employee who took money to make the title look valid. But they get paid to make sure the title is good, a title company that doesn't do that doesn't last long.
 

·
Super Moderator
Joined
·
17,717 Posts
Looking into it today but the contract was executed and signed by all interested parties last week. Any mistake is directly on them at this point.
Exactly...it's a done deal. There ain't no "do-overs". Anybody has a problem get a lawyer. You can't just cancel checks. Maybe there's something in the contract somewhere that allows for some kind of contingency. But I've never heard of anything like this. The buyer has to show up with certified funds.
 

·
Registered
Joined
·
4,957 Posts
I suspect the lender for the buyer backed out on the funding for some reason. However, this is something I've never heard of after this amount of time.... a title co not honoring an issued check.
 

·
Super Moderator
Joined
·
21,544 Posts
I was in Real Estate for 3 years and have had only 1 deal fall apart at closing.

It was a divorce with the wife's parents owning about 200 yards of the long driveway. They were supposed to have singed a quit claim Deed on that portion of the property. But they never signed it because they were trying to screw with their daughters husband.

They had singed a promissory note when the house was sold. So with the threat of a large lawsuit they signed it by the end of the day.
The deal closed by the next day.

Divorces are the worst deals to go through.

I have never known of a Title Company canceling a check after closing.

Sent from my SM-G930P using Tapatalk
 

·
Premium Member
Joined
·
8,347 Posts
A title company in Florida, and I assume I'm most other states, has two basic functions. First is to research ownership and satisfy themselves that the title insurance policy they are about to issue- and get paid handsomely for, may I add, is enforceable, and to review all aspects and contingencies of the contract written by the real estate broker(s), insure that they are legal and enforceable, and have been resolved, if there is a contention.

Their sole remaining duty is to disperse funds either held by them in escrow, or have been presented to the closing table in the form of certified check(s).
.
I have never heard of of a title company cancelling a settlement check
 
  • Like
Reactions: GreenWolf70

·
Registered
Joined
·
24,615 Posts
Maybe he ought to take the check to Texhiem's auto mechanic and see if he can fix it.
 
  • Like
Reactions: jtg452 and Texheim

·
Registered
Joined
·
14,816 Posts
Sounds like to me, someone's dad may soon own all the assets of a title company and the board members possessions.
 
  • Like
Reactions: Desperado

·
Registered
Joined
·
31,910 Posts
Every time I've closed, a cashier's or certified check was required. Title usually doesn't transfer for a month or so.
I have closed many deals with direct wired funds and not just cashiers or certified checks. Depending on what time of day the funds are wired to the title company, may make the funds delayed a day, as all wire transfers have to go through the federal reserve bank first and then to the recipient.

Tex's dad is primarily a commercial real estate broker, and deals with a lot of national chains. I suspect the buyer may have gotten cold feet, but still, I have never been issued a commission check, nor my seller a proceeds check until the sale has been funded.

My real estate career began in 1972, and the only reasons I can think of for the check to be canceled are two reasons. First, the title company received some notice of a pending future claim about the property (les pendens) or fraud allegations, or a defect in the descripion of the policy. Our Texas contracts had changes in the survey portions of them about three years ago, that have little impact on residential deals, but which could and do have impacts on commercial properties, where prime locations are sold for sometimes more than $100 a square ft., and the amount of land described in the sale at time of contract and the subsequent new survey showed a deficiency. That title company better have a good explanation.
 
  • Like
Reactions: GreenWolf70

·
Registered
Joined
·
12,813 Posts
Exactly, what did the Title Company give for an excuse?
 

·
Registered
Joined
·
16,494 Posts
I have sold 6 houses and every time all funds were issued on cashier type checks. Sounds very strange to me.
 

·
Registered
Joined
·
1,882 Posts
This sounds like a criminal and a civil matter.

File a criminal complaint ASAP.

Then hire a good civil attorney with experience in real estate for damages.
 

·
Registered
Joined
·
18,829 Posts
:unsure:...maybe the buyers just found out the house was built on top of an ancient water cooler burial ground?
 

·
Registered
Joined
·
916 Posts
Holy crap! They can't do that... I'd file a complaint with the Texas Department of Insurance. Even if you work it out.
FREDWARDS Comment was right on and I have to add If those funds were contingent to be used on another flip a lot of incurred costs could occur ! I would also consult with an attorney for damages also !
 
1 - 20 of 24 Posts
Top