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Old 04-13-2007, 12:03 PM
 
Location: Cary NC
548 posts, read 1,584,990 times
Reputation: 277

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I put in an offer on a home fall of 06. We were unable to walk through the home so we used the property disclosure report and a licensed home inspector to be our eyes for us. This is becoming common in buying homes out of state. We received the residential property disclosure report and there were no deficiencies noted. After inspection from our home inspector he told us that the property was a pile of !@#$. There was deferred maintenance everywhere and he discovered toxic mold (stachybotris). 4 roof leaks, leak in the wall from a bathroom to name a few. The amount needed to repair all deficient items was easily above $5000 (the max allowed amount) but the sellers refuse to release our deposit. The listing agent has over 20 years experience and is on the realtor board. I won't say which city or county to avoid naming names. Somebody with this much experience must have done a walkthrough of the property before listing it. This agent willfully/negligently omitted the property condition. In NC real estate law it states " A listing agent is held to a higher standard with regard to negligent misrepresentation about material facts about a listed property to a buyer than is a selling agent who is acting as a seller's subagent. This is because 1) The listing agent is in the best position to ascertain facts about the property, 2) the listing agent is expected to take reasonable steps to assure that property data including with the listing is correct and 3) it is considered reasonable for a selling agent (buyers agent) to rely on the accuracy of the listing data in most instances. It also states that the listing agent has a duty to insure that the residential property disclosure statement is filled out accurately even if the sellers do not fill it out accurately. As a result I am in litigation to try to get my deposit back from the sellers. Although it will cost me more than I will get back it is the principle of the matter for me. I filed a complaint with the real estate commission along with pictures proving he must have known along with the property inspection report. THE NC REAL ESTATE COMMISSION DOES NOT CARE ABOUT THE PUBLIC. IT IS MY BELIEF THAT THEY ARE IN BED WITH THE AGENTS IN HIGH POSITIONS. BEING IN A HIGH POSITION DOES NOT GIVE THE AGENT A RIGHT TO BE LAZY, SLOPPY OR DISHONEST! I will take this to court and i hope the judge will have more common sense than the real estate commission. I have come to the conclusion that if you use a real estate agent - don't! Unless you know through personal experience that they really have their !@#$ together. I say hire an attorney instead. If an agent tells you that you MUST be represented by an agent, that is a lie. (I checked the law). If they refuse to let you see a property because you don't have an agent and won't let them represent you, don't bother complaining to the commission because they probably won't do anything about it anyway. You can report it to HUD and the Federal trade commission. Hey, maybe I will become an agent, I will fail to do my job and nothing will happen to me. There are many good agents out there so I am not saying they are bad. I am saying that if there is a problem with an agent the commission won't do anything about it so cover your you know what! To the agents who will go up in arms over this post, I have ($)7,500 reasons why I don't care.
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Old 04-13-2007, 12:26 PM
 
Location: South Charlotte
1,405 posts, read 3,871,860 times
Reputation: 463
NC is a Caveat Emptor State. Buyer beware.

It was in your best interest to have an agent/firm representing you.
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Old 04-13-2007, 12:54 PM
 
Location: Cary NC
548 posts, read 1,584,990 times
Reputation: 277
Quote:
Originally Posted by Charlottean View Post
NC is a Caveat Emptor State. Buyer beware.

It was in your best interest to have an agent/firm representing you.
No duh...I did and they dropped the ball too.
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Old 04-13-2007, 12:56 PM
 
Location: a nation in decline
10,347 posts, read 10,791,285 times
Reputation: 3962
Wow. Sorry you had such a bad experience. Nobody should have to go through that kind of grief, especially where realtors constantly project the image that if they carry the term "Realtor" they are professional, qualified, above board and dependable. It's hard to think they wouldn't police their own, just to keep their own image untarnished.

Guess we were incredibly lucky to have a really good realtor.

Charlottean...NC is a Caveat Emptor State. Buyer beware.

It's *always* "buyer beware", regardless of what you buy, or where you buy it. It's a good watchword to live by.

Last edited by southward bound; 04-13-2007 at 12:56 PM.. Reason: sp
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Old 04-13-2007, 01:12 PM
 
Location: South Charlotte
1,405 posts, read 3,871,860 times
Reputation: 463
Quote:
Originally Posted by deuterdu View Post
No duh...I did and they dropped the ball too.

Great response..

The only agent you speak of is the listing agent and you go on about not needing an agent so one would believe that you were doing this on your own.

From my understanding you put an offer in on this thing sight unseen.

In addition, 20 + years of experience in the industry doesn't mean squat. What if they only sold 10 houses a year compared to another agent that has been in for 5 and sells 50 a year. I would rather have the transaction experience for situations like this. Of course you could not do anything about that side of things.

$7500 is a lot of earnest money my friend. Out of curiosity did you use Alternative 1 on the NC Offer to Purchase and Contract?
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Old 04-13-2007, 01:16 PM
 
Location: South Charlotte
1,405 posts, read 3,871,860 times
Reputation: 463
It's *always* "buyer beware", regardless of what you buy, or where you buy it. It's a good watchword to live by.[/quote]

Ain't that the truth. Especially today!
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Old 04-13-2007, 03:13 PM
 
284 posts, read 1,207,376 times
Reputation: 174
Quote:
Originally Posted by Charlottean View Post

$7500 is a lot of earnest money my friend. Out of curiosity did you use Alternative 1 on the NC Offer to Purchase and Contract?
1) Charlottean, for those of us who are newbies to NC real estate, what is a reasonable amount for earnest money usually (ballpark)?

2) Could you elaborate a little about what Alternative 1 is just for clarity.

Thank you so much!

Deuterdu, so sorry you are having problems, but appreciate you letting us know. No matter what, your post helps remind us to be as prepared, cautious and educated as possible in our business dealings. Hope you get your money back!
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Old 04-13-2007, 03:26 PM
 
Location: South Charlotte
1,405 posts, read 3,871,860 times
Reputation: 463
Earnest money deposits are completely negotiable. In my opinion a strong EMD would be around 1% for a re-sale. New construction is a different ballgame as each builder or developer has their own guidelines. Especially if it's a custom build expect to pay a much larger depost.

Alternative 1 creates a negotiable inspection period. During this period you inspect the property and negotiate repairs with the seller if any. Under Alternative 1 you also have a Cost of Repair Contingency. In addition, for a Cash Deal you have an appraisal contingency.
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Old 04-13-2007, 03:27 PM
 
2,590 posts, read 6,360,879 times
Reputation: 3706
If understand your post correctly you attempted to buy a house sight unseen??

Why on earth would anyone even think of doing such a thing??

If you were unable to travel to the area to look at the house in person why would you not rent???
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Old 04-13-2007, 03:31 PM
 
152 posts, read 612,379 times
Reputation: 96
I don't understand that if the max of repairs in the contract was $5,000, and the costs for repairs is above that, what basis do they have for not returning your deposit? We have had this happen before and we got out of the contract b/c the repairs were more than we had allowed in our offer to purchase. We had no problems with either agent (ours or theirs). Or course, we got several contractors to give us estimates on repairs for proof. Have you gotten written confirmation of the costs of repair? You REALLY need that.

If they didn't know about the leaks, they didn't have to report them in the property disclosure --- a seller in fact can choose to make no representation on the property disclosure. It might to be hard to prove they knew about mold or leaks. In NC, there is almost always negotiation after the contract if a property inspector finds problems and the costs of repair are above those you put in your offer --- if not, then you are stuck. IF so, you should be able to get out of the contract.
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