I have a very high tolerance for pain and a very low tolerance for stupidity. There is absolutely no excuse in any state where title companies are used to facilitate closings that any real estate agent should not understand or know how to read a HUD1 Settlement Statement.
We have a clear to close on another short sale. The HUD1 Settlement statement was sent over by the title company that we use for our Florida short sale closings to the buyer's agent. She sends the HUD1 Settlement statement to her buyer. Her buyer emails her for an explanation of the fees he is being charged on the buyer side of the column. She emails me her buyer's email and asks me to answer HER buyer's questions.
She then calls me to ask me "what does the word pro-rations mean and why are pro rations on the HUD1 for taxes and HOA fees?" HUH????
I had to bite my tongue so hard. I wanted to ask her how in the world did she pass the real estate exam? There are questions on that exam concerning pro-rations. There is a whole section about the HUD1 Settlement statement in the real estate school manual. There are math questions about the pro-rations!
How in the heck are you representing a buyer in a real estate transaction and not understand the terms on the HUD1 Settlement statement when at every closing you should be with your buyer going over the fees on the HUD1 and of course making sure your buyer is not being overcharged for fees. She did not even know that taxes are paid in arrears in Florida. How do you NOT know that???
Why are you asking me to do your job by consulting with your buyer?
Sorry, I can not do that. There is liability involved and I do not have a transactional relationship with your buyer. The best thing to do in this case is to call the title company and have the title person explain what all these fees are. So she did get the buyer on the phone with the title company and our title lady answered all of his questions. She calls us up after in total disbelief that an agent would not have a clue about any of the terms or fees on a HUD1 Settlement statement.
Next question: Where is her broker?
Nestor would never allow a closing wherein he did as the broker have him or I review the HUD1 Closing statement for all transactions that go through our office. In fact, in most offices here, the brokers will not pay the agent until the HUD1 Closing statement has been approved and in the file.
Please make sure you get educated before you represent buyers or sellers in real estate transactions and make it a requirement of working for a brokerage that your broker provides the training that you need to look like you are competent enough to follow through on a real estate transaction.
Copyright © 2010 By Katerina Gasset, All Rights Reserved.*How In The World Did You Pass The Real Estate Exam?!*
Comments (56)Subscribe to CommentsComment