Posted by sp/MI on 12/4/12 4:24pm
Msg #445515

Pay 7 days after receipt of payment from closing

I did a closing for a new client.
I was told they pay 7 days after their receipt of payment.
So I did the closing and looked for payment after 10 days. (3day recission plus 7 days).
I called today... 21 days after closing and they told me they were not paid by mortgage company yet.
My question.... doesn't title issue checks to signing company along with other checks?

Reply by Yoli/CA on 12/4/12 4:33pm
Msg #445518

Depends on contract. Sometimes, pay is issued once a month.

Reply by HSH/WA on 12/4/12 4:46pm
Msg #445520

Re: Why do they think we work on a contingency?

I've stuck with 3+ star companies and so far have not had any problems getting paid on an acceptable basis (net 30 days).

Reply by MikeC/TX on 12/4/12 5:46pm
Msg #445535

Title is SUPPOSED to cut checks for all disbursements immediately after closing, but in many cases they have an agreement with a Signing Service to pay once a month rather than issue dozens of checks during the month. In that case, the money is probably moved to some holding fund that gets paid out once a month.

That may be the situation here; the company is not technically being dishonest with you - they may actually issue payments seven days after receipt of funds - but they neglected to tell you that the "receipt" may not happen for 30 days or more, depending on when the closing took place. Oops...

You're probably looking at 30 days or better, and you may be dealing with an under-capitalized signing service that just doesn't have the cash flow. For future reference, when dealing with folks promising quick payment, there's often a huge difference between "after closing" and "after payment is received" - and they won't tell you about it unless you ask.

Reply by Lisa Cirillo on 12/5/12 12:31pm
Msg #445612

When working with any new company I always ask what their terms are for payment. Most are 30 days. If they tell me after the closing, I still ask what are their terms (30 days, 45 days etc.) Personally, I like to be paid asap but 30 - 45 days is not unheard of and I can deal with that.

If they are new to me, I only do 1 or 2 jobs with them, wait to see how they pay, then proceed from there. I don't want any company owing me to the point where I can't get paid. I've been lucky so far and have had to chase only 2 for payment. And no, I won't work for them anymore.