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pis_toff · Feb 9, 2011, 07:05 AM

I bought a home in may 2011. The realitor told me and wrote in the sales contract that the bank, who owned the property, had paid the property taxes through June 2011. So I paid a prorated rate back to the bank for the time I owned it until then. A couple weeks ago I received a property tax bill which was for the entire year. When the bank paid the tax in December, the realitor treated it as being paid forward for January 2011 to June 2011 when she knows the city treats them as being paid backward, which would have been for July 2010 through December 2010. She knows the city treats tax payments this way and still wrote the contract stating something different. Can I sue her for knowingly and willingly writing false information in a contract? Or the bank for the prorated rate I paid to them for something they had not even paid?

J_9 · Feb 9, 2011, 07:07 AM

Your dates are a little confusing. You state you bought the house in May 2011, but it's only February 2011.

smoothy · Feb 9, 2011, 07:10 AM

And (assuming no time travel was involved and that was a typo) did you have an attorney with you as is customary to review documentation on your behalf... or were shortcuts taken in an effort to save a few dollars?

pis_toff · Feb 9, 2011, 07:40 AM

No. This was my first home purchase and I didn't even think about having one at the time. And it was a typo.

excon · Feb 9, 2011, 08:34 AM

Hello p:

You use the word "knowingly", but you don't know that she knew it. Besides, she has NO financial incentive to have done it, so I believe it was a mistake.

What I would do, is write the bank a letter explaining how they got you, and ask them for a refund.

excon

pis_toff · Feb 9, 2011, 08:44 AM

After asking around about the realtor I found that this is not the first time she has done this. I know for a fact that she knows hiow the taxes are treated. And she did not have anything to gain except, this was a condo I bought and there were 15-20 unsold units. The bank gave her exclusive rights to sell them and you could not go through any other realtor to buy one. So she was representing both sides and I feel she was favoring the bank.

excon · Feb 9, 2011, 09:08 AM

Hello again, p:

You HAD the right to be represented. You CHOSE not to. You also do NOT know what she knows, and you can't PROVE it in any case. The bank doesn't need to rip off people, and I doubt that is what she did...

However, if you wish, sue away.. But, if you're RIGHT, the bank WILL pay you back... They WILL, really, and you don't have to sue 'em to get it. They can add. They know what they're owed.

excon

smoothy · Feb 9, 2011, 10:59 AM

Incidentally... the realtor is only acting as an agent for the property owner to market and bring in a buyer for the property.

They don't actually do the closing process even though they are there as part of it.

Read through the pile of documents you got (and it is a pile)... was it actually represtented in them as having that taxes paid up to date? Thing about contracts... is they tend to be very verbose because they are very specific about what they DO cover. And if its not in writing... its not covered. Implied warranties and situations tend to be very specific in nature.

Also odd because the bank in the finance papers specifically asks you who you are using for your title inurance and what lawyer is handling your part of the closing process. BEFORE you go to close

And being I have refinanced my house several times as rates dropped since I bought it... and not all at the same place... that process is fairly standard. YOu either have to name who will do those parts or you have to sign a waver. And the Realtor has no part at all in that part of the closing process. That's between you and the financing organization.

Ilike · Feb 17, 2011, 11:26 PM

In our state we don't typically use attorneys at Settlement. We use Title Companies but Realtors have an obligation to review the Settlement Statement and correct for errors (and the brokerage they represent is on the hook for the potential error). I would suggest reviewing your Settlement Statement. You may have been credited an equal amount towards your overall Principle (instead of those funds making its way to the County Assessor's Office). If you received a principle reduction (perhaps a mistake) you likely owe the taxes only because you received the benefit of the reduced principle. If you were never credited then I would consult your REALTOR and Title Company, your Lender, your REALTOR's broker, and then the Seller (in that order). If you feel that you are not getting the help you need you can file a REALTOR Ethics Complaint with the local board/association that the REALTOR's brokerage is a member of. Depending on the amount of mistake you may want to hire an attorney. Most brokerages have E&O insurance. Good luck!