Good morning!
I am working on a closing of a land purchase. The title company is telling me they WILL NOT allow the option fee to be included with the Deposit in section L. of the CD. They are telling me that this violates their disclosure requirement and that all other banks show the option fee as a separate item in the Other Credits Section.
Am I misunderstanding the rule (see clip below)? Can anyone else weigh in on their current practice or any argument I can make with the title company?
LE:
§1026.37(h)(1) (iv) Deposit. (A) In a purchase transaction as defined in paragraph (a)(9)(i) of this section, the amount that is paid to the seller or held in trust or escrow by an attorney or other party under the terms of the agreement for the sale of the property, disclosed as a negative number, labeled “Depositâ€;
CD:
§1026.38(j)(2) Itemization of amounts already paid by or on behalf of borrower.
(ii) Any amount that is paid to the seller or held in trust or escrow by an attorney or other party under the terms of the agreement for the sale of the property, labeled “Depositâ€;