Nov. 2, 2009
Dear George: We're closing on a new home and have all the paperwork ready. Because we're not using the homebuilder's lender, he's saying that we may not get the keys to the house for 24-48 hours after closing. The builder claims that it may take that long for him to get funded. We're giving him a cashier's check for our downpayment and have paid for all the upgrades to the house. Is this normal? If so, whose insurance company is responsible during this period?
Answer: It's not unusual for lenders to delay funding for a variety of reasons. The seller knows this and is taking advantage of it because you didn't use his lender. Get the lender you're using to "table-fund" at your closing. Pressure them nicely to get this deal done. You might also want to verify that the builder will have presigned the required documents for your closing, if the builder isn't going to show up. In most cases your insurance doesn't come into play until the transaction funds, which is when the title company certifies that it's funded and you get the keys.
Dear George: Twenty days after I signed a contract to buy a home, I was told that the VA appraisal that's necessary for my loan to be approved had not come back yet. If the home appraised for less than my offer, I would lose my earnest money. In fear, I verbally terminated the contract and later put my termination in writing. I've since learned that the appraisal was high enough and that the VA approved my funding. Even though the seller has accepted another offer, do I still have any rights to the property?
Answer: No. You have no rights to the house. You terminated the contract.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
