Is the actual loan closing required to match the final closing documents signed by the borrower at the title company?

UPDATED: Jul 12, 2011

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Is the actual loan closing required to match the final closing documents signed by the borrower at the title company?

We signed final loan documents with the title company which showed that we would be receiving a refund of our deposit. When we received our refund, several fees had been deducted. The title company states that fees which were listed as “paid” on the final docs were found to be unpaid, so they had to take the fees from our deposit to close the loan. We were not made aware of any of this until a week after escrow closed, when we finally received our check. Seems fishy.

Asked on July 12, 2011 under Real Estate Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

In a real estate transaction where an established "escrow" (third party) holds all paperwork, drafts the deeds, collects the moneys and records the deeds, a preliminary closing statement is first drafted and sent to all of the parties, one for the buyer and one for the seller setting forth the estimated break down of all fees (credits and debits).

At close of escrow the final closing statement is given to the buyer and seller by escrow which is typically signed and dated by the buyer and the seller as to each of their closing statements. The final closing statements need to balance out the credits and debits in the transaction and monies via wire transfer and checks are distributed to those who are authorized to receive such in the written escrow instructions.

If the final closing statement for you as the buyer in the sale does not balance out or comply with what is stated where you actually received less monies from escrow via a check than what is stated in the final closing statement, escrow has to explain to you what happened and the reason for the differential. Hopefully the shortage was not a huge amount of money.

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