Well, I have just had another real estate closing go sideways on me and it appears I am left holding the bag by the title company to collect from the former buyer (good luck on that one).
What is the practice around the country on this one? Do you get paid at closing? If so, how do you get paid when it doesn't? Does anyone know of closers that escrow money for pre-closing services to make sure they get paid? Do pre-closing services really belong on a HUD-1 settlement statement? I'm just about at the point of making it a rule that pre-closing services get paid pre-closing.
I require credit card info for all projects to get on my schedule. Got tired of that debate.
When a realtor tells me I will get paid at closing, I tell them no! The buyer and seller have already agreed to who is paying for what, so I ask what that agreement is and if I can contact them to make my own payment plans. Then I get half down from whoever. Plus I can discuss my services with them to make sure they are getting what they expected to.
I make the buyer sign a contract to make sure I have something that I can hold them to in case the closing goes south.
Matt
:good: Best solution I've heard for these little buggers. When I was on my own I usually accepted payment out of closing and would just lose 1 or 2%. My perspective was that it's not worth getting an ulcer over less than $1000. But I think the credit card info is the best answer.
Thanks. I found that contracts really don't help much, but people understand giving their credit card info is serious. It also filters out price shoppers that will say yes, then continue calling around.
Contract is signed by person responsible for paying , before we start . Person picks up map at office and gives me money or no survey.. There are exceptions for commercial projects. Closing makes no difference to me. I have always been paid . Except for one survey, and the guy was a -----
This is being a business man .. You might have a rep now for excepting no payment if deal falls through.. No PDF to attorney unless I get my money. Get a contract young fella ..
> Well, I have just had another real estate closing go sideways on me ..
Being paid at closing means you have a vested interest in their being a closing. That is what makes paid at closing unethical.
Title companies are pirates..
Never did a thing for a title company that something didn't "go wrong". I avoid them like the plague.
Two years ago I broke a 70 acre tract into 5 smaller tracts for a client. Each tract had its own survey. They have all sold. One of the original buyers (not my client) called me the other day. I had a road name wrong on the "Location Map". She wanted to know if I'd fix it. Sure. I emailed her a copy that had "FILE COPY - NOT ORIGINAL" watermarked at 45 degrees in huge font across the sheet with no signature.
Today I get a request from a title company for a price to "update" the survey. Of course they would want the cert to changed with their name in there and some exceptions shown. I emailed the title company back and told her without looking at the commitment a price would be hard to pin down, but let's start at 800 bucks and go from there.
Thirty minutes later an email arrived back that said, "Thank you for the reply. Have a nice day."
You know, for once me and the title company might see eye to eye about something.:-D
Title companies are pirates..
95% of the surveys I do get paid at closing.
I have had to eat a few though. 95% of the parties to the transactions around here can't afford a cup of coffee with up-front money, but that doesn't keep them from going into more debt.
The days of people living with their means are GONE. The downturn in 2008 culled out a lot of them, but they are on their way back.
> Being paid at closing means you have a vested interest in there being a closing. That is what makes paid at closing unethical.
It's close to splitting hairs, but what is definitely unethical is taking on a survey and agreeing to be paid IF the sale closes. Agreeing to wait for payment at closing isn't by itself unethical if the contract provides for payment in other eventualities aside from the sale closing.
I am assuming you are referencing “simple” lot/block mortgage surveys we refer to in Fl. as Boundary Surveys. All the title companies in Central Florida I have dealt with in the past roll with the assumption if the loan doesn’t close the surveyor does not get paid. Title companies are cheaper than realtors. Unfortunately if you do not want to play by their rules you don’t play. As you probably know by now there is always some surveyor that will. I insist on payment, up front, in full for a Boundary Survey associated with this type transaction. Needless to say we do little, if any, work for title companies.
By the way, the area you are located in is a veritable gold mine. I don’t know what type surveying you “specialize” in, but with housing construction what it is in your area you are in a position to become a wealthy surveyor. B-)
Did you lose Attorneys or Title companies as clients? I think its a great idea Andy. I dont really do much of that work anyways, I refuse to do these $300 dollar mortgage surveys.
Title companies are pirates..
if they can afford to buy a house, they can pay you.
I agree. There's nothing wrong with being paid at closing, or, if the deal goes bad, immediately thereafter.
How do the termite inspector, home inspector or appraiser, and everybody who helped fix up the house for sale get paid? The surveyor shouldn't carry any more risk of non-payment than the rest of the gang.
I have a couple of title companies I work with that I will accept payment from closing, and most of them will pay me from the escrow if the deal goes south. For any individual that calls, we get paid at the time the survey is delivered. CC or check.
The termite guy, home inspectors, and appraisers get paided up front, the home inspector gets paid up front ... And the reason is, they can find things wrong with the home that can cause the buyer to cancel the contract. The surveyor is the same way. I've had people back out of contracts because the elevation certificate came in low, or there were encroachments, then they don't want to pay.... Even though my work kept them from making a costly mistake....
We've really tried to move away from a payment from closings model, except with a few regulars I trust, and we have had to eat much fewer surveys.
> Did you lose Attorneys or Title companies as clients? I think its a great idea Andy. I dont really do much of that work anyways, I refuse to do these $300 dollar mortgage surveys.
No, as a matter of fact, it takes the pressure off them so they actually order more.
It just makes sense that the person relying on the survey should be the one paying for it. I don't do any kind of 'mortgage survey' here in Florida, and don't even think of getting in my truck for $300. this ain't a hobby!!
