New Home buyers.....something to know...... (Clayton, Welcome: insurance, hotel, attorney)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
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So we closed on our home on Long Island last Thursday had our moving trailer already here in Clayton sitting in our new homes driveway, we drove all night trailing a uhaul and me following behind in our 2nd car, 3 kids, 3 dogs and 2 cats........anyways, we went to the walkthru after driving 14 hrs and then to closing which did not happen.....
We then spent the next 4 days in a hotel room and searching for a new home since we didnt know if we would get the home we thought was ours...
Here's the problem.......with the economy being what it is and the builders
having issues selling and paying their sub contractors which then the subs in return put leins on the properties prior to closing and or after the new homebuyers are in..........
So now title companies are requiring that all subs on the property in ? sign a lein waiver release which basically states that they are signing off on the property and will get paid when they do (which should be done obviously) or at closing....and that they wont put a lein on the builder/property.....
If this doesnt happen they wont close......this is what happened to us.....first off we didnt even know this was happening, up to the closing there were signatures coming in and one wasnt gotten until Monday afternoon, (even though we were supposed to close Fri @ 2pm)
I understand why the title companies are doing this since they will be the ones paying out if there are issues. but I just wanted to let other new hoe buyers know this.......ask your agent about it.......and if its needed haunt the hell out of them to make sure they have all the signatures in hand.....if they dont be careful, we could have stayed in our old home for 3 days with no expenses and now we are out over $1500.00 and none of it was our fault...
Nevermind we were so mad, and upset that when we finally got in the house we couldnt even enjoy it the way we should have....
I love my home and am sooo happy it all worked out, but this is what tied it all up......so please make sure and see if your title company is requiring this and then make sure its taken care of properly......
Sitting in a hotel room with 5 people and 3 dogs is no fun...(we lent out the cats to a friend for a couple of nights) thank god....Thanks Karen
Man I am sorry to hear this. Thanks for the informative post. I hope it helps others. I bought a resale but will keep this in mind if I ever purchase new construction.
FWIW, is their no recourse for you to recoup the money you spent on the hotel? While it was your title company holding things up, the way I see it the fault lies with the seller since they did not have their ducks in a row. Doesn't some of the responsibilty fall on them? What did you RE agent and attorney have to say, or what did they try to do to "make you whole"?
Either way, I hope you enjoy your new house and your new life in Clayton!
Last edited by North_Raleigh_Guy; 01-15-2009 at 08:57 AM..
St. Lawrence? I ask because I have a client that is considering one of their properties, already finished new house, and I've tried to get all the information that I can.
I've been told by the listing agent and the onsite agent that there are NO liens on THIS particular property and that we can get clear title.
I have warned my buyers of all the ramifications...even after closing, there may be some builder warranty issues that we have to go through the 10 year warranty company instead of the builder.
Since I am aware of these issues, if our offer goes to contract, I am going to have the closing attorney contact the title insurance company THAT SAME DAY TO MAKE SURE WE CAN GET CLEAR TITLE.
Wonderful of you to share this, Suzanne and I hope you get into your new home asap!
With everything that is happening with builders these days and some developers going under, I am so glad that things worked out for you and that you are in your house.
Now that you are here, please sit back and bask in the sunshine and our relatively warm winter weather!
Today's high temp in Ann Arbor, Michigan (the area we moved from) is 7 degrees; tomorrow's high is forecast for 4 degrees. In New York, the temp is 18 degrees, but the windchill is 4 degrees!
That makes our temps here downright balmy! And you are safe and warm in your new home.
Suzanne,oh, I'm sooo sorry to hear about your troubles! Thank you for sharing this so others know what to look for!
I really hope that you enjoy your house in Clayton and have fun settling in. Just think, this Sunday it will be all the way up to 50 degrees! You can call your old friends and rub it in a little.
Suzanne, I'm sure by posting your experience you're helping lots of people who can now prevent this same situation. So sorry to hear what you've all been through. Very upsetting and stressful, I'm sure. Awfully nice of you to take the time to post most helpful information.
Aren't realtors aware that this is happening around here, and shouldn't yours have put you on notice to these facts? You'd think he/she would have been watching out for your best interests and disclosing this information.
I think I'd consult an attorney about reimbursement, as long as the consult is free.
best,
toodie
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A couple of thoughts:
1. I was sorry to have read about all the stress caused by this, in this thread and the other.
2. Glad to hear of the successful closing. Thumbs up!
3. As far as liens go, the agents are really dependent on the word of others. Nerve-wracking? Sure!
And when the attorney goes to record after closing, it is possible for a lien to be found in a final search, preventing recording. No one ever wants the phone call, "We couldn't record because..."
4. There may well be no remedy in the contract for expenses for the late closing. The contract likely sets closing as a target date, thereby giving leeway to the Seller for delays.
The Standard NC Realtors' Offer to Purchase and Contract has a 30 day delay built in with little recourse other than collecting some interest from days 11-30 and the right of the "non-delaying party" to terminate and take the EMD after 30 days.
I'm guessing that this transaction was done on a builder's contract, which of course would cover the delay for the builder.
An attorney could give an interpretation of the contract provisions and offer counsel on the chances of recovering any of the $1500. They generally have told me to smile and get on with life.
5. I hope the house is great, and I hope it serves JimnSue well despite some tarnish on the experience!
Vicki......as i said there were no leins, but definately unpaid contractors......I dont believe that would have mattered anyway......the understanding I got was that this is something new and something that may become common, I guess the only way to be sure is to ask ahead if this is something that the title ins company requires so you know in advance....
Vicki......as i said there were no leins, but definately unpaid contractors......I dont believe that would have mattered anyway......the understanding I got was that this is something new and something that may become common, I guess the only way to be sure is to ask ahead if this is something that the title ins company requires so you know in advance....
also we purchased in Clayton in Walker Woods
Now, THIS is something I have not heard of.
WHO has to get the signatures from the subs? WHO determines if ALL the subs signed off?
Are ALL title companies doing this? There are many title companies that we can use.
Vicki
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