House Purchase Problems (real estate, new home, water heater) - Maryland (MD) - City-Data Forum

naustin · 06-02-2007, 12:27 PM

I have ratified a contract to purchase a house closing on June 30. The home inspector's report recommended some fittings/structures either repared or replaced. My agent explained that sellers will normally not fix problems they consider to be cosmetic. As a result I requested through my agent that I visit the house the second time to help me decide on which are the most important repairs/replacements required. This request was denied by the seller's agent (I presume after discussions with the seller). I therefore requested my agent to prepare an addendum that included all problem items listed in the inspection report to be repaired by a licensed contractor who will also be willing to issue a 'certificate of repair'. Most importantly, I requested that the seller replaces a water heater which was rusty. The seller signed the addendum and included another addendum indicating which repairs thay are prepared to do and that they will only provide reciepts for materials purchased to complete the repairs and not the certificate of repair that I requested. They also clainm to have repaired the water heater instead. My agent has since told me that the seller had already begun the repairs and since completed them and that if I so wished, she and the buyer's agent will be prepared to pay for the cost of a re-inspection in lieu of the certificate of repair that I wanted. I have therefore decided to back out of the purchase as I believe the nature of repairs done if any may be temporary fixes and also as they are unwilling to change the water heater. My agent now tells me that seller's agent claims that the seller intends to sue if I present them with the 'release form' to enable me out of the contract. Can they sue and if so for what? Thanks

Gabrielle · 06-02-2007, 04:03 PM

I guess I don't understand why you didn't accept the offer from your agent and seller's agent to pay for a reinspection?? An inspection would have shown whether the problem areas were fixed. I also don't know why you think that the repairs done were only temporary fixes - the reinspection would have shown this. If I were the seller, I would be pretty ticked off that you are trying to get out of a contract despite good faith efforts to remedy your objections.

naustin · 06-02-2007, 04:47 PM

Hi Gabrielle,

Thanks for your comment. However, from the moment the sellers agent denied me the opportunity of visiting the house after the home inspection I lost confidence in the whole process. From then on it felt like I was being led to the 'slaughter' by both agents.

ashbrn4 · 06-02-2007, 06:35 PM

The sellers do not have to do any repairs or replace anything they didn't agree to. All that has to be done is what is agreed to by both parties. What was the contingency period? Has it expired and what did the contingency say? Also, are you really prepared to walk away from a house based on the fact they didnt' replace a water heater? Did you agree to their "addendum"? If so, then you are bound to the contract. I feel like you're leaving something out. Buyers can be just as big of pains about inspections as sellers. I've been a seller dealing with someone who wanted a perfect/new home but wanted to get it by buying an older home cheaper and demanding everything on the inspection be done. Some really stupid things were requested too. You say the water heater is rusty? Where on the outside? Inside? Leaking? Most sellers wouldn't want to replace a working piece of equipment that could be repaired either. If they're willing to let it be resinspected and pay for it, let them. They don't have to do it. And, people can sue for anything. Whether it'll get anywhere is the question.

They also don't have to let you back into their home even with a contract. They might be totally trying to pull something over on you, but they might also think you're trying the same thing.

naustin · 06-02-2007, 08:25 PM

There I believe lies the problem. I sent an initial addendum which they signed but included an additional clause i.e. that they will provide receipts for materials for repairs they do. I did not agree to their addendum (which stated their willingness to do some of the repairs requested) and therefore did not sign it. They proceeded with their preferred repairs without any agreement between us as to what is to be repaired. It is for this reason that I feel all they care about is I buy the house irrespective of my concerns. The contingency period was 10 days and it has since passed.

TuborgP · 06-03-2007, 04:06 PM

Having just sold in Maryland let ask these questions. How long was the house on the market? How many offers did they have to select from? How bad/soon do they need to sell? How bad/soon do you need to buy. That should decide how it gets resolved and who does what. In a way you sound like the offer I didn't accept. No offense but some buyers want to milk the seller in this market and feel entitlement to do so.

eastgurl · 06-04-2007, 04:37 PM

It doesn't matter what the sellers do at this point, it does not sound like you want the house bad enough. What do you have as contingencies in your contract? If it allows you to back out after the home inspection for any reason, then you should be ok. If it does not have that clause in the contract, then the equipment in the home probably only needs to be in "mechanically" operational. What is mechanically operational? That's to be defined by the home inspector.

Read your contract carefully to see if you're covered.

teleblazer · 06-04-2007, 06:52 PM

Quote:

Originally Posted by naustin

Hi Gabrielle,

Thanks for your comment. However, from the moment the sellers agent denied me the opportunity of visiting the house after the home inspection I lost confidence in the whole process. From then on it felt like I was being led to the 'slaughter' by both agents.

I have to agree with Gabrielle, the reinspection should have covered your worries (especially if you get the same inspector). Losing confidence isn't a valid option for backing out of a house and a legally binding agreement. THey can argue they endured an expense in good faith to secure the purchase of the home.

You do have a 3 day right of recision that you can exercise if after you buy the home and check out the repairs yourself you can back away. Just expect to lose any deposit you may have placed down due to legalities.

rubytue · 06-04-2007, 09:02 PM

You should probably ask this in the real estate professional forum, they will know about the contracts and such.

But, it seems silly to walk away over a $500 water heater. Maybe convince them to throw in a home warranty if it bothers you so much.

naustin · 06-05-2007, 05:52 PM

Yesterday I was informed by the sellers agent that they are willing to provide 'certificate of repair' from a licensed contractor for the major repairs done. They will also be willing to replace the water heater on the recommendation of a new contractor they have hired to inspect and certify the state of the water heater. Additionally, they would be willing to grant a sellers concession to cater for repairs they cannot complete before closing. It would seem that I do not have to ask for a 'release' from the contract afterall. Thank you all for your comments.