Posted by yoshaCA on 10/12/09 3:13pm
Msg #307072

November 30th and liability

With the 8000$ federal credit set to expire on November 30th, (that's of course if they do not extend) there will be a lot of people trying to close before November 30th. (since it must be closed before Nov. 30th.) I have three questions to this effect...1) Do you guys plan to rise fees during the end of November? 2) What kind of liability will there be if there is any mistake and it does not close by the 30th....(even if it is not our fault, because people can sue even if they are wrong) What is the possiblity of being sued for the 8000$ 3) Is there any E & O insurance for signing agents since notary insurance only works with notarizations.
I am asking this, not because I expect to make any mistakes, but I tend to be a careful person in all aspects of life. Thanks for your thoughts in advance.

Reply by Philip Johnson on 10/12/09 3:25pm
Msg #307075

Don't look now, but your cart is in front of the horse.

I don't think they'll be a rush for us (TC's maybe); because most first time purchasers don't close at their apartment or folk's house.

Reply by Linda_H/FL on 10/12/09 4:27pm
Msg #307082

"1) Do you guys plan to rise fees during the end of November?" ... no - unless I'm closing on Thanksgiving Day..


"2) What kind of liability will there be if there is any mistake and it does not close by the 30th....(even if it is not our fault, because people can sue even if they are wrong) What is the possiblity of being sued for the 8000$" .... none IMO - too many hands in the pot prior to our getting it for it to come down to us - not our fault if it's not ready to close on time - don't forget, we get the call (in a perfect world) when it's "clear to close" - meaning all others before us have gotten all their ducks in a row.


"3) Is there any E & O insurance for signing agents since notary insurance only works with notarizations. ...." Yes....in select states (unfortunately, Florida is not one of them...not sure about CA) - American Society of Notaries has a couple links for it

Reply by MW/VA on 10/12/09 4:38pm
Msg #307083

I don't expect to see much of this business, because most purchases close at the real estate office or title company. There may be some on out of state purchases. Regardless, I would not raise my fees for first-time homebuyers.

Reply by Shoshana/AZ on 10/12/09 5:06pm
Msg #307086

I would not take advantage of a first time homebuyer

either as an NSA or LO. Many of them are struggling to get into their first home with an FHA mortgage.

Reply by Glenn Strickler on 10/12/09 5:38pm
Msg #307088

My fees are my fees regardless of who hires me. I only add to basic fees for mileage, excessive fax backs or a few other items that I charge extra for in my normal course of business.

I close a few first time loans now and again (mostly in the title company office), and I see no reason to charge extra fees based on a premise that I might make an error and held responsible for it. I have closed loans where my liability if I made an error and the client lost their rate lock was a heck of a lot higher than 8 grand.

Another thing to think about, if you try to raise your rates above what you normally charge, the TC or SS will just hire someone else ...

Reply by Linda_H/FL on 10/12/09 6:05pm
Msg #307090

Re: November 30th and liability...Glenn

"I see no reason to charge extra fees based on a premise that I might make an error and held responsible for it"

I could be wrong but I think the OP meant raise fees because there'll be more work toward the end of the month as the push will be on to close these in time....maybe I read it wrong but that's what I understood her to mean.

Reply by Glenn Strickler on 10/13/09 5:46pm
Msg #307198

Re: November 30th and liability...Glenn

Maybe I read that wrong also, but be that as it may, I only raise my fees if my costs go up and the market can bear it. Just raising you fees because it might get busy and you want to make a killing may come back to bite you in the end ....

Reply by Linda_H/FL on 10/14/09 4:14am
Msg #307235

I agree 100% Glenn... n/m

Reply by Sylvia_FL on 10/12/09 5:47pm
Msg #307089

"Do you guys plan to rise fees during the end of November? "

Why should anyone raise fees just because there will potentially be more work?

(and no one rises fees - they may raise fees, but not rise fees)

Reply by Claudine Osborne on 10/13/09 9:45pm
Msg #307227

I am not raising my fees either! The hiring companies will look for someone else with lower fees..So if there is more work you would be pricing yourself out of that work. I do quite a few new home purchases in real estate offices..Not usually at a home like refis.