Charged $50 for Rush Fee at closing despite properly submitting 'TREC NO. 37-44' as found on the State of Texas website in accordance with TPC 207.
My wife and I requested to have the appropriate paperwork filled out for our future buyers of our home well before the sale/contract date (May 9th). We requested again once we knew the exact sale date (June 4th). It was not until the Title company chosen by the buyers requested the paperwork did it get processed. Unfortunately it was less than your mandated 10 days. Regardless, we had informed Lonestar Management that this sale was going to take place in plenty of time to have it processed. It was to my surprise that there was a $50 Rush Fee tacked on at closing . This is the fee that we are requesting to be mailed to us. Lonestar Management's response was that 1) We used the wrong format, yet we used the one directly from the State of Texas website, 2) That their form is only good for 30 days, yet TPC only specifies 180 days without any mention of 30 days, and 3) that we request the fee back from the Title Company, despite a) that not being the correct protocol in such as case & b) that we properly requested/submitted the form in accordance to *** ****
$50 for the 'Rush Fee' charged.
Mr. ******** requested the $50.00 resale fee be returned from his closing even though he did finally acknowledge that his title company put a rush on a resale request which is attached. We have told him that he needed to address this issue with the title company that handled the closing but he has been unwilling to do that. State law states that a management company has 10 business days in which to prepare a resale certificate and anything less than that may be charged a rush fee. Mr. ******** states because he told us months earlier that his home was for sale and would need a resale request that we were notified prior. In fact when his wife sent the email, **** *******, our resale coordinator explained the process in which we received no further correspondence. The title company after a contract was placed on the home ordered a resale certificate that originally was not rush. They then sent another requesting asking that we provide it earlier, stating that they were aware there was a rush fee. This would have been explained to Mr. ******** at his closing. Other than providing the resale certificate, the management company is not involved with the actual closing or who pays for what at that time. If the ******** had asked Ms. ******* to complete the resale certificate after she explained the process she would have done so and requested they pay the regular fee in advance. They did not therefore none was prepared. If it had been done that early, the title company would have requested and updated certificate to protect the purchaser and the cost to update the resale certificate is also $50.00. Mr. ******** has misstated what property code states concerning how many days a resale certificate is good for. State Property Code 207.003 states that within 180 days an updated certificate may be obtained. This only means that after that a new resale is required. Also, resale certificates are provided to protect the purchaser and title company in case of liens, fines, charges, etc. Our form clearly states they are only good for 30 days without needing an update so if it had been provided in May, an updated one would have been needed. Dates specific to this claim:
May 9, 2013 Received email from Ms. ******** concerning obtaining a resale certificate
May 10, 2013 Ms. ******* responded to the ******** with "Good morning, Here is the process: When you have a buyer and have chosen a title company, the title company will contact me to get a resale package, which consists of a statement of the account, a resale certificate, and a CD containing the governing documents for the buyer. I will prepare that in time for your closing and deliver it to the title company. Please feel free to give my contact information to the title company, but other than that, you do not have to do anything else. The resale fee is $300 and is broken down as follows: transfer fee $125 and resale certificate $175." There was no response to the ******** to proceed with the resale certificate.
June 4, 2013 Received email from the ******** stating that due to their closing in June they would not be paying their assessments for July. (No certificate requested)
June 14, 2013 Title Company ordered Resale Certificate (Due by June 28th - 10 Business Days)
June 24, 2013 Title Company requested to receive early stating they knew there would be a rush. Informed by Ms. ******* that she could not do it that day but would have it to them by the 25th.
June 25, 2013 Resale Certificate to title company (7 business days after the June 14th request date).
***** ******** Director of Community Management and Accounting
Lone Star Association Management, Inc
2500 Legacy Drive, Suite 220
Frisco, Texas 75034
Phone: XXX-XXX-XXXX Ext. 112
Fax : XXX-XXX-XXXX
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Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Lonestar Association Management initial response to our request implied that it was the only way to process our request and that the form provided directly from the State of Texas was invalid. Our follow up email titled 'Subdivision Information Form' clearly stated when our house would be under contract, which was less than 30 days but more than 10 days. It is no secret that HOA Management companies make their money from such fees, but find that it is poor business form to deny or mislead that the process HAS to go one way, when in fact and law, it did not. It was only to their advantage to let the anyone but the homeowner (who would be liable for such penalties) make the decision of when to submit a form. It was specifically communicated in a timely manner directly to Lone Star Association Management the specific date that we would be closing, therefor the $50 'rush fee' was just another means for their deceptive trade practices.
In addition, I was not provided the communication between the Title Company and Lone Star Association Management until after the BBB complaint was filed. The title company was hired and represented by the buyer, therefor should not have been able to make a 'rush' request on the buyer's behalf. While, I acknowledge that the title company put this request in, I still hold that it was not NECESSARY, as our initial request was not processed. Should it have been processed in accordance to Texas Property Code, there would not have been a rush fee. Their initial response took that right away from us, despite Texas Property Code 207.
Lone Star Association Management has had a long history with Castle Hill Estates with what I would call 'shady' deals, so the whole reason that we sent our Subdivision requests was to prevent exactly what happened.