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Cost of Survey asked by closing Attorney.

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(@carl-b-correll)
Posts: 1910
Topic starter
 

I did a lot survey this week for a transfer. Normal survey, house and lot, etc. Nothing special about it. The buyer requested the survey, it was not required by the lender as he is paying mostly cash for the property. He just wanted a survey. The buyer did not balk at my price and paid me when I delivered the plats.

I just had a call from the closing attorney's office wanting to know the price that the buyer paid for the survey for their "closing papers" (my phrase not theirs, I can't remember what she said they called it). Why would they need to know that? I told the buyer to make sure that they didn't get charged a survey fee in the closing costs because he's already paid. Sadly, I had my mind on something else and told them the amount as I know the closing attorney, but after the call, I felt weird about it.

I just now called my client and told them what transpired and they didn't seem to mind, but I'm still a little weirded out by it... I wish the attorney had just called the buyer directly. I'm wondering why they didn't...

Oh well... Have a great weekend (*while I have spasms about this interaction*)

Carl

 
Posted : September 27, 2013 12:31 pm
(@andy-j)
Posts: 3121
 

yeah, that's odd. My guess is that they really liked the way your map looked, (probably compared to the crap they are used to seeing) and are wondering if they can send work your way.

 
Posted : September 27, 2013 1:23 pm
(@a-harris)
Posts: 8761
 

Nosey attorney (*<*)

The only time anyone besides the client needs to know the prices are the closing agent because of HUD statements they fill out and funding for expenses at closing.

"Call the client" is my suggestion.

0.02

 
Posted : September 27, 2013 1:40 pm
(@andy-j)
Posts: 3121
 

On a sort of related note... Had a discussion with a local banker. Topic got to their "good faith" estimates of closing costs. He was still putting down around 350 bucks?? Apparently, if the fee is more than 10% over the estimate, the bank has to pay it. So I asked him why his estimate was so ridiculously low? why paint yourself into a corner of 350+10%>?? I said I've owned my firm since 2005 and have never ever done a boundary survey for anywhere near that. I was shocked. but then, they don't order much work from me either. I'm ok with that.

 
Posted : September 27, 2013 1:40 pm
(@andy-j)
Posts: 3121
 

Norm did call the client...

I just now called my client and told them what transpired and they didn't seem to mind, but I'm still a little weirded out by it... I wish the attorney had just called the buyer directly. I'm wondering why they didn't...

 
Posted : September 27, 2013 1:55 pm
(@tom-adams)
Posts: 3453
Registered
 

I'm with you on this one. I think it would have been an easy slip-up, but would have felt funny about disclosing the price in retrospect. Good thing the client wasn't bothered about it.

I think the take-away lesson is to tell any outside parties that it's none of their business (or other less-biting language). The real person that should have felt funny about even bringing up the subject to you, is the attorney. He should have gone straight to the client. (How much did that survey cost you if you don't mind my asking?)

Call him up and ask him how much the client paid him for his services. Maybe he would get how rude it was to ask if he got asked the same question.

 
Posted : September 27, 2013 2:06 pm
(@thiggins)
Posts: 110
Registered
 

> On a sort of related note... Had a discussion with a local banker. Topic got to their "good faith" estimates of closing costs. He was still putting down around 350 bucks?? Apparently, if the fee is more than 10% over the estimate, the bank has to pay it. So I asked him why his estimate was so ridiculously low? why paint yourself into a corner of 350+10%>?? I said I've owned my firm since 2005 and have never ever done a boundary survey for anywhere near that. I was shocked. but then, they don't order much work from me either. I'm ok with that.

I'd like to see a $350 boundary survey; it'd pay to drop off a card for future work with the neighbors.

 
Posted : September 27, 2013 2:16 pm
(@rob-bachara)
Posts: 104
 

SOP in these parts is for the attorney to order the closing survey most of the time. They would always ask so they could put the cost on the closing statement.

Rant

Around here I was trying to get $400 for a boundary survey for a residential closing, which is why I'm no longer in business; too expensive. Why pay that when you can get them for $275-300? I couldn't make it because I tried to do them right, while I had to deal with all the BS left behind.

Rant off.

 
Posted : September 27, 2013 3:09 pm
(@holy-cow)
Posts: 25292
 

I have had calls from the closing agent to confirm whether or not I have been paid for the survey. I can't think of any case where I was asked the size of my fee.

I can understand how some loans may have weird checklists, though.

 
Posted : September 27, 2013 7:13 pm
(@kent-mcmillan)
Posts: 11419
 

> I just had a call from the closing attorney's office wanting to know the price that the buyer paid for the survey for their "closing papers" (my phrase not theirs, I can't remember what she said they called it).

Did you see a copy of the sales contract? It strikes me as possible that the seller agreed to split the cost of the survey with the buyer or to pay full freight. Either way, it would be a reimbursement item to the buyer and the closing attorney would want to verify the cost with the surveyor.

 
Posted : September 27, 2013 7:22 pm
(@carl-b-correll)
Posts: 1910
Topic starter
 

I did not. I was told that the buyer was toting the full cost. The patriarch is a local "developer" (flipper).

 
Posted : September 27, 2013 7:46 pm
(@mathteacher)
Posts: 2081
Registered
 

Sometimes such a call is not from the source identified by the caller. A good stock answer is, "Send me a written request on your firm's letterhead signed by a principal of your firm." If you receive such a letter, you still have the option to not disclose your price.

 
Posted : September 28, 2013 4:04 am
(@larry-p)
Posts: 1124
Registered
 

...
> I just had a call from the closing attorney's office wanting to know the price that the buyer paid for the survey for their "closing papers" (my phrase not theirs, I can't remember what she said they called it). Why would they need to know that? I told the buyer to make sure that they didn't get charged a survey fee in the closing costs because he's already paid. Sadly, I had my mind on something else and told them the amount as I know the closing attorney, but after the call, I felt weird about it.
>

Why call #1? Federal rules. That sort of stuff is supposed to be on the closing paperwork. If you refuse to tell them they make a note and everything is fine.

Why call #2? To cover their own butts. Anyone who provided a service on the property in the recent past (exact definition for recent determined by state law) may be entitled to file a lien on the property. The attorney who has reason to know a service may have been provided must insure the provider was paid. If not, they get paid at closing or sign paperwork revoking their right to file the lien at a later time.

A very good friend of mine bought a new house. He got full title insurance coverage and thought everything was fine. Thirty days later he gets a notice that the provider of the lighting fixtures in the house had filed a lien. He calls the attorney and is told .... "Why are you calling us? We don't care?" He told me about it and we called the attorneys office back.

"Your office issued a certificate of clear title. You assured me (the buyer) that everything was free and clear. If you had done your job, this would not be an issue for me now. Fix the problem now before I file a complaint with the bar and get you reprimanded."

The attorney fixed the issue by paying the lighting contractor out of his own pocket. Because they either did not do their job (check with those who may be entitled to file a lien) or were lied to by the contractor, they were responsible for making things right. If the attorney had paperwork from the contractor that left out the lighting contractor, then the attorney could sue the contractor.

The bottom line is this attorney was doing a good job both for you (if you had not yet been paid he would have made sure you were) and for his client (making sure nothing comes up in the near future that could harm him).

Larry P

 
Posted : September 28, 2013 7:05 am
(@carl-b-correll)
Posts: 1910
Topic starter
 

Thank you, Larry

I think your explanation is the best. Thank you.

Carl

 
Posted : September 28, 2013 7:41 am
(@wayne-g)
Posts: 969
Registered
 

These types of things are phone calls that you do not respond to. Nothing good comes out of it.

You got paid, job is done. Period.

Lawyer is driving up his bill and your guy will lose out. Don't call the lawyer back is my suggestion, unless your client calls you first and tells you to speak with him.

$0.02

 
Posted : September 28, 2013 1:39 pm
(@larry-p)
Posts: 1124
Registered
 

Wayne,

Read my response above. The attorney is 1) doing his job and 2) doing Norm a favor.

Working with the attorneys is far better than working against.

Larry P

 
Posted : September 28, 2013 7:23 pm
 hjo3
(@hjo3)
Posts: 1
Registered
 

Speaking of costs...I have been having a lot of fun with Real Estate Agents lately. I started quoting 2% for all parcels with a house. I get real tired of agents not wanting to tell me the location of the survey.

Like trying to give someone a quote on a car part. Is it a Ferrari or a Ford Truck?

I love the part where they say..."you can't charge 2%".

I just reply that I had to have 5 years of experience before I became a surveyor...how many weeks long was your Real Estate Seminar and you charge 7%?

I know...weird sense of humor.

Jamey

 
Posted : September 29, 2013 2:17 pm
(@stephen-johnson)
Posts: 2342
 

Good Reply:good:

 
Posted : September 30, 2013 8:26 am