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  1. #1
    Join Date
    Mar 2007
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    Spring City/Surrounding Philadelphia area
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    Default Trying to Force Payment at Closing on Me

    I did a reinspect yesterday on a property I inspected for a client a few weeks ago. Well my client's realtor called me last week about the reinspect and asked if I take payment at closing. I said no, payment is due at time of inspection. So yesterday was the reinspect, the buyer gives me a check, but her agent asks about getting my tax ID# (something about the title company or somebody needing but didn't say exactly what for). Hmmmmm.....nobody ever asked me for that before. So yesterday afternoon, I get a message from the realtor saying if I have not yet cashed the buyer's check for the reinspect to hold onto it because the bank is going to send me a check for the reinspect.......and that they need my tax ID#. Ahhhhhh.......so it seems that even though I said "no payment at closing", it was going to be done this way all along and the buyer just gave me a check to play along (?).

    I e-mailed the realtor reiterating our conversation from a week ago where I said "no payment at closing". Now the reinspect was yesterday and closing is just today. But it seems that nobody wants to listen to what the inspector says is the way payment needs to be made. The realtor called me a little while ago again saying the bank needs my tax ID#.

    1 - I have one but don't know where it is (I have no need to have it on hand)
    2 - I'm not going to go digging around my office to find it and give it to them so they can pay me the way I specifically stated in a manner I do not accept (at closing).

    The realtor then said if I don't know where it is they'll need my SSN#. Let me think about tha......NO!!! I'm not giving my social to anybody. WTF!!!!

    I'm annoyed about many things here but mainly because this is apparently the way the bank was planning on reimbursing my client for the reinspect fee but they purposely held off on telling me and tried to get me to do things to suit the bank.

    Now I have to say I have no idea the way getting paid at closing works so I don't know if the bank/lender/title company needing a SSN or tax ID # is standard practice to cut a check to the inspector. I've never done payment at closing and I don't really like the idea of giving them the info they were requesting.

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    "It takes a big man to cry. It takes an even bigger man to laugh at that man". - Jack Handey

  2. #2
    Join Date
    Mar 2007
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    Connecticut
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    Default Re: Trying to Force Payment at Closing on Me

    Nick, You have the check, If they don't want it cashed they better get you another within a week or you just cash it. Let the bank pay the client instead of you. Sounds like another s head broker antics routine


  3. #3
    Join Date
    Jul 2008
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    Snowbird (this means I'm retired and migrate between locations), FL/MI
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    Default Re: Trying to Force Payment at Closing on Me

    I believe I can safely assume that the total of all inspection fees being paid is equal to or in excess of $600 for services.

    It is standard for any payor, including an individual, to get tax id numbers for any entity they pay an amount equal to or in excess of $600 to which any portion would be part of a cost basis or a current year or future year deduction, that's been the threshold for the 1099 rule for services for quite some time.

    Whether or not you would be negotiating the private check (again) for inspection services, or one issued by another entity, providing a Federal TAX ID number to a payor is (or should be) S.O.P upon request.

    New rules included in that latest "package" of legistlation (the one affording more regulatory supervision and "control" of the investment market(s), also now require businesses to get the tax ID number for entities they pay any amount equal or greater that same threshold dollar amount - and even if for product or inventory, no longer just for "services" and even if payable to a corporate entity (i.e. "C" corp) not just "S" corps or sole-proprietors, as they are now required to issue tax forms at the end of each filing year. Talking heads at the time pointed out what a burden and paperwork nightmare this was going to be, especially for small businesses (to be issuing these documents, beyond w-2s, and the previously required 1099s for services and 1099-INTs when previously required.

    The question remains as to whether or not the "service" or later legistlation will write an exclusionary rule to reduce the, as it now stands, paperwork nightmare that, as written, will ensue (also since cover 1098 and attached 1099s that exceed a document count must be submitted electronically or via mag tape!).

    You may (actually should) be requested to fill out a certification form. It would be advantageous to discuss this with your tax advisor and perhaps have this information prepared for and available to those who request it.

    Although, even if the total of "reports" and "related services rendered" total 599 or less, this information may still be requested, and the payor may still require, since the associated costs may or may not affect the cost basis of the real property in question, the "moving expense", etc., future use as an income property, transfer to a "swap", a life estate, and etc. so even if not seeking a personal "deduction" in the present year and even if for less than the target figure of $600, it would be a valid request of the payor, whether or not you are paid at time of inspection, in advance of inspection, afterwards, or from an escrow. Some bank's in-house loan origination epartments and some title companies are docummenting even pre-closing paid fees fully since that last legislation package was signed into law.


  4. #4
    Join Date
    Mar 2007
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    Spring City/Surrounding Philadelphia area
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    Default Re: Trying to Force Payment at Closing on Me

    That's what I told her realtor Wayne. Have the bank pay the client. She said it's law that they have to pay me (who knows). Either way, I don't like games like this.

    "It takes a big man to cry. It takes an even bigger man to laugh at that man". - Jack Handey

  5. #5
    Join Date
    Mar 2007
    Location
    Plano, Texas
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    4,170

    Default Re: Trying to Force Payment at Closing on Me

    So sorry, that deposit is already made.

    The tax id is SOP for banks though, they have to have documentation on everything and something for the paper pushers to push.

    Jim Luttrall
    www.MrInspector.net
    Plano, Texas

  6. #6
    Ted Menelly's Avatar
    Ted Menelly Guest

    Default Re: Trying to Force Payment at Closing on Me

    Quote Originally Posted by Nick Ostrowski View Post
    That's what I told her realtor Wayne. Have the bank pay the client. She said it's law that they have to pay me (who knows). Either way, I don't like games like this.
    Cash the buyers check

    You have no need to give a tax payer ID #

    The buyer being paid back at closing is quite common and all it requires is for you to present a paid invoice to the buyer. Period.

    If it were a business that was paying you then they may require a tax ID#

    Your tax ID # is your social unless you do have a separate tax ID # which means you are paying to much taxes. As a sole entity as in you are the only company member you should just be using your ssn.

    You made an arrangement with the buyer/Realtor. They chose after the fact to honor it....tuff crap. Cash the check Nick. Let them worry about how who gets paid for what.

    You had a contract verbal or written with the buyer....not the bank.


  7. #7
    Join Date
    Mar 2009
    Location
    Charlottesville, Va.
    Posts
    292

    Default Re: Trying to Force Payment at Closing on Me

    Another reason for me to keep doing what I've been doing....driving through the bank drive through window on my way home which is 1/4 mile from my house and depositing those checks right away.

    Sorry you're getting jerked around.


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