Seller backing out-recourse? (Raleigh: sale, new home, buyers)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
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We thought we were in the process of moving to the Raleigh area. We are preapproved, had a place chosen, contract in place, had the water check and inspection and then the troubles started. The water came back on this older home as having unsafe coliform levels (bacteria), the inspector found several major issues (code violations) and the seller states he will back out of the contract rather than pay for repairs. We have a full price contract, and only have asked to bring the older home up to code and satisfy the FHA requirements (it was listed as FHA compliant, not "as is"). I know that we could eventually get our deposit returned, but what about the other expenses (including the buyer's agent fee)? This has turned out to be a nightmare and a waste of time. Is there also a way that what transpired can be recorded, so that any future buyers are aware of the problems beforehand?
Yeah, you theoretically shouldn't be out any money at this point. The situation stinks for you and obviously a waste of time, but you shoudl get your deposit back and not be paying any agent at this point. The seller is supposed to pay the agent anyway.
Have you told the buyer that he will need to make the repairs no matter what if he hopes to sell the home? Unless someone makes the mistake of not getting a home inspection, the problems will just resurface. If its an issue, its time to move on - a house is too big of an investment to buy problems.
Have you told the buyer that he will need to make the repairs no matter what if he hopes to sell the home? Unless someone makes the mistake of not getting a home inspection, the problems will just resurface. If its an issue, its time to move on - a house is too big of an investment to buy problems.
So the seller is now aware of this issues. In NC is he/she legally obligated to disclose them? In Oregon the seller would be obligated, thus the seller would often times work w/ the buyer... fix it or drop the price. Is this not the case here???
Lets see if I have this right...you have a fully signed contract.
Buyer has inspections. Buyer asks seller to do repairs. Seller says no.
Buyer has option to take the house "as is" or get his earnest money deposit back.
Seller will have to disclose issues on his seller disclosure form. If seller refuses to disclose, Realtor cannot list property or she could lose her license. Seller's agent should explain this to them because they will either have to repair or disclose. Why lose the sale over this? Would seller be willing to drop price of house since they do not want to do the repairs?
You do not pay your buyer's agent so nothing is expected of you, as far as the commissions. You do have to pay your Home Inspector.
As for the well, there is a simple fix for this. Sending bleach through the system is all it takes. I had this come up previously.
Im sure one of the Realtors can clear up the legal disclosues the seller will now be required to make and your options.
I just wanted to state this is another good post on why to get a home inspection. You realistically should just be out the money you spent on inspections. It does depend on the contract you make, but if it was done with the proper protections in place you will hopefully get the earnest money back and be able to walk away and find a new home.
So the seller is now aware of this issues. In NC is he/she legally obligated to disclose them? In Oregon the seller would be obligated, thus the seller would often times work w/ the buyer... fix it or drop the price. Is this not the case here???
The seller has to furnish a disclosure as part of the contract here in NC as well. However, if the seller fixes the items covered on the disclosure that were found during the inspection he/she does not have to report them on the disclosure to future buyers.
The seller has to furnish a disclosure as part of the contract here in NC as well. However, if the seller fixes the items covered on the disclosure that were found during the inspection he/she does not have to report them on the disclosure to future buyers.
Right. But if the seller is going to fix the items so as not to disclose them, why not fix them for THIS BUYER?
So the seller is now aware of this issues. In NC is he/she legally obligated to disclose them? In Oregon the seller would be obligated, thus the seller would often times work w/ the buyer... fix it or drop the price. Is this not the case here???
While the Seller may not lie, the Seller is not legally bound to disclose much of anything.
The NC Residential Property Disclosure Statement includes the opportunity to make "No Representation."
That option exists, and if the Seller is aware of problems, then the problems must be disclosed, or "No Representation" selected.
"No Representation" is legitimate, but also may be a signal that the Seller is covering something up.
The Buyer's Agent apparently has some contract form 'splaining to do, since the OP's post shows little recognition of the parameters of a typical transaction wherein the Buyer is using a Realtor.
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