Is it normal for an escrow company to request addition of an addendum AFTER all the papers have been signed but before officially closing?
It is the 11th hour. We're in escrow to buy a house and it closes in two days. Last Friday, we signed all the papers at escrow for the loan. There will still be disclosures and other forms to sign at closing, but the lion's share of the paperwork is done.
A bit of relevant background:
1) Part of the original deal included $8,000 for us to get the roof replaced. The FHA wouldn't approve the loan unless the roof was replaced BEFORE closing, so the seller had the roof replaced. We signed an addendum at that time to allow them to use the credit to pay for the roof, and the balance (if there was any left) would be credited to us. If it was more than the $8,000, then they'd eat it. The quote on the roof was $7,000. The roof was replaced about 2 or 3 weeks ago.
2) I don't trust my or the seller's agents. It's a long story
--and the subject of a previous AskMefi question
My agent sent me an addendum for us to sign from the escrow company. The addendum approves us paying another $300. The story from escrow and my agent is that the invoice for the roof ended up being $7,300. I asked for an itemized invoice. I received back a paper that had only two items:
1) Original bid price.....$7,000
2) Replaced damaged wood sheeting 106' at $3 per foot....$300
So there's the $300, but what does that mean? There's no breakdown of costs. I wasn't aware there was damage to the roof; I'd not been told this before. The roofer, by the way, did a stand-up job and was good. I was able to talk to him before he did the roof. However, as I said, I'd heard nothing from him or the seller about damage on the roof.
So my questions are these:
1) Closing is Thursday. What if I refuse to sign the addendum? What happens? Does this jeopardize the whole transaction?
2) Is this type of invoice (just the two items) standard and/or normal for roof repairs or replacement?
3) I'm so worn down, I almost want to just pay the extra $300 without making a big deal out of it. But is this what everyone expects at this point (escrow is tiring and a major pain)? Did they just throw in this extra $300 in the hopes that I just pay it without asking any questions?
4) I know that invoices can be higher than estimates, but is this normal to do this AFTER all the loan docs are signed? The seller indeed is irresponsible (trust me), so I could believe he'd forget until the last minute and throw the paper into the pile. But am we on the hook until 5:00 PM on the day of closing, or just after we signed all the loan docs?
5) I know many of you are probably not California real estate attorneys (I've already talked to one about the previous issue
), but is this worth contacting an attorney over if it's less than $300?
6) It's so frustrating; should I just pay the $300 and be done with it? That's a dishwasher, though! 300 bucks! That's paint and paintbrushes, rollers, and pizza. I hate to just give up $300 for no good reason. Of course, sanity MAY be a good reason...
Keep in mind, I'm not usually a confrontational or litigious person. I'm just sick of all this crap, and have come to develop a major lack of trust in anybody that could make any money off the sale.
Thanks for any insight you have!