My realtor though it was odd of me to ask for meth lab contamination test. (Gurnee: sales)

[Crede's Crew]

We we're doing home inspection this Sunday and I told her that beside the typical home inspection I also need radon testing and meth lab contamination testing. She told me "radon is very common for homes with basements but meth lab contamination testing is the first!" So I told her that I read stories about people who buy homes from Fannie Mae and flippers and found out that their homes were meth lab at one point and it cost $100,000 to clean up. Then we mentioned to her that we found 2 homes on the registered ex-meth labs that are not too far from the home that we want to purchase (one in Gurnee and one in Libertyville). Still she insist that this is very odd and told me to consult my attorney first. Why? I thought that we can do any testing and inspection during the inspection time window.

Also am I being too paranoid?

[chet everett]

You are absolutely free to pay for any kind of test you would like to but I gotta warn you that you should NEVER make an offer on any house in Illinois until you are thisclose to taking it REGARDLESS of what the inspection shows.

The specific language of the "standard" contract that too many real estate agents allow buyers to use is VERY much the kind of thing that LAWYERS THAT LOVE TO LITIGATE LOVE! Over the years I found out that good attorneys that like to get paid not to make others' lives misreable but to HELP THEIR CLIENT AVOID COSTLY LITIGATION can and will craft a far more specifc contract the specifies in detail what exactly will be grounds for return of the escrow and what buyer & seller will accept as "remedies" for items found during an inspection. This is, in my opinion, a better way to go...

The issues that you will open yourself up to should your "meth contamination test" come back "positive" (accurate or not...) is what will you do about that???

If you think you can walk away and get your escrow back YOU BETTER REREAD YOUR CONTRACT as it is well within the realm of the possible that not only will you forfeit your escrow you will also be subjecting your self to a specific performance lawsuit and/or monetary damages if the seller can make a case that your actions have made their home unsellable...

Frankly if you are worried that the house truly was used to cook meth or even jittery about other homes in the area attracting the wrong element you should never have gotten to the point where you made an offer. If your agent did not explain this to you that is not surprising because the sensaltionism of too many of these stories about meth containmination (or radon or poltergiests or indian burial grounds or whatever) are not completely baseless but simply so limited in reality that not even a good agent can stay on top of 'em...

[Crede's Crew]

Everything you said is valid. In traditional market, home inspection should be done before the offer. However, Fannie Mae doesn't allow home inspection until the offer is accepted. And why would I shield out $350 for inspection and $400 contamination testing if I don't even know if the bank will even accept my offer?
Additionally, Fannie Mae do allow buyers to back off after inspection and is entitle to 100% of their earnest money. I spoke with my attorney last night and he confirmed that as long as we get it done within the 7 days window, there should be no issue if we walk away from the house should the inspection show any major issue.

Yes, if the test comes back positive, this home will deem unsellable. By state law, ex-met lab must be professionally clean out before it can be sold. The house will also be on the registered database. That's something that Fannie Mae needs to figured out cuz I wouldn't be dealing with that.

I don't suspect of this house of being an ex meth lab. There was no visible sign of this house ever being used as a meth lab. But then again, I just want a peace of mind. I have twins babies and their health and well-being is my #1 priority.

[chet everett]

Glad the attorney helped you understand what is possible. It is your money and your right to spend it how you want.

[JacksonPanther]

I don't understand - you are recommending that the OP try to have his various tests done BEFORE making an offer? What seller would agree to that? Me as a seller is going to open my home up to various testing companies, all to benefit someone that has zero "skin in the game?" I don't think so...

I'm trying to understand an escrow contract that holds the potential buyer responsible for problems in the home found during various inspections or tests. There are many issues that could be found that will make a home if not unsellable, certainly worth much less - termites/carpenter ants, loose asbestos, leaky old oil tanks, etc. I have never heard of a potential buyer being held responsible because the seller was ignorant of the problems in their home.

[supportyourschools]

Is it even possible to have a home inspection before one makes an offer on a home? I don't know anyone who has had an inspection done before making an offer.

[Vlajos]

Originally Posted by supportyourschools

Is it even possible to have a home inspection before one makes an offer on a home? I don't know anyone who has had an inspection done before making an offer.

I guess if one is stupid they would allow it.

[chet everett]

Slow down folks -- the OP has an offer on "REO" -- real estate owned by the lender. Typically that means a house that has been through foreclosure and is now under the control of the lender. It is like a repossed car. The lender has no idea what happened in the house and has zero ability to be held responsible for any kind of misrepresentation. It is the most "as is / no warranty / no guarantee" kind of situation.

If the OP wants to spend their own money on an inspection to try to find out ANYTHING they are well within their rights to do so -- if you wanted to find out if the previous occupants had cats or something you can probably track down an environmental testing agency to do that...

Things are little differnet when it comes to (the stupid reactionary lawmakers in springfield moronic) rules about "Meth labs and residential real estate disclosure" -- Illinois legislation would require home sellers to disclose meth lab history anytime the seller becomes of aware of the anything that should be on a residential real estate disclosure the seller can no longer say "unknown" they HAVE TO say "yes" whether it is well that is run dry or a leaky basement or a "meth cooker residue" (or maybe maple syrup... Maple syrup farm mistaken for meth lab in Illinois )

There is no way that an REO sale is gonna "just fix the place up for you". If it was a REGULAR seller and they were angry enough and had an attorney that was stubborn enough they COULD pursue a case for "specific performance" which is RARE CIRCUMSTANCES will mean a court COULD force the buyer to buy the place IF THAT WAS IN THE CONTRACT -- Real Estate Contract Specific Performance | Home Guides | SF Gate

The other RISK is that the SELLER may consider suing the BUYER for "remedies" which, in specific instance of OTHER CASE LAW (but not yet this meth lab situation ...) resulted in the "jilted" seller being rewarded for the costs of what ever problem the BUYER "discovered" to be fixed (generally limited up to whatever is escrow, but you never know...) -- Seller's Remedies and Real Estate Sales Contracts - Lawyers.com

Now you gotta realize that these things are so rare as to be more useful for "real estate agent continuing education seminars" than anything the OP is likely to encounter and LIKE I SAID it is good that the OP had an attorney that explained the "worst case situation"...

[Crede's Crew]

I actually knew a few people that did an inspection before the written offer. But that was after the verbal agreement.

With REO, it is a take it or leave it situation. They wouldn't fix anything but you may walk out if you are not satisfy with the inspection result. I also want to point out that in our contract, Fannie Mae will fix anything issue that can cause FHA to not release the fund.

[chet everett]

HomePath ? I think that is a nice setup for buyers. Really helps to alleviate a lot of fears.