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Our home located in NC is presently in the Due Diligence phase. Due to the results from a radon test that was conducted during the home inspection, the buyer asked us to install a radon mitigation system. Still during the Due Diligence period we agreed to install the system and that work was completed. The buyer has now backed out of the deal and we are curious if we have any recourse for the money that we spent on the radon system? Thanks!
The buyer stated she is scared of the radon. The ideal reading is 4.0 or less and our basement had a short term reading of 7.3. I am told the radon mitigation system will drop the level to around 1.0-1.5. I was told by the installer that many, many homes in NC will register for radon when tested.
I understand the buyer can cancel for any reason during the DD period but it would seem that we should have some recourse for the money spent. By the way, we agreed to address every item from the home inspector's report. It is the radon that has scared the buyer off.
My house is slated to get the test here in Va next week. They wanted to do the test today and pick up the device tuesday because of memorial day. I told them to remove the thing and come back next week for the two day test. In our case I don't care whether the buyer likes it or not. I would be very angry if I complied to what the buyer wanted only for them to back out after spending $900+ for a fan that vents from the roof. What did your agent tell you you should do? I believe its difficult to keep some or all the earnest deposit in most cases but it would seem to me your agent should have made it clear to the buyer if the seller complies the deal is still good. I'm curious to know how old is your house, is the basement completely submerged, do you have doors and window in the basement and a sump pump?
It is a common misconception for many in North Carolina that repairs must be completed before expiration of the Due Diligence Period.
That is an error, as final negotiation and agreement for repairs is all that is needed during DD.
Repairs are subject to re-inspection prior to closing, and do not have to be completed until after DD. It is smart of sellers to wait until lapse of DD before doing repairs, if they are concerned about buyer terminating during DD.
It is a common misconception for many in North Carolina that repairs must be completed before expiration of the Due Diligence Period.
That is an error, as final negotiation and agreement for repairs is all that is needed during DD.
Repairs are subject to re-inspection prior to closing, and do not have to be completed until after DD. It is smart of sellers to wait until lapse of DD before doing repairs, if they are concerned about buyer terminating during DD.
Thanks for the reply. I figured that was the answer but I thought I would cross my fingers and ask. A little disappointed that our realtor did not give us this guidance before it all took place. I will know next time.
My house is slated to get the test here in Va next week. They wanted to do the test today and pick up the device tuesday because of memorial day. I told them to remove the thing and come back next week for the two day test. In our case I don't care whether the buyer likes it or not. I would be very angry if I complied to what the buyer wanted only for them to back out after spending $900+ for a fan that vents from the roof. What did your agent tell you you should do? I believe its difficult to keep some or all the earnest deposit in most cases but it would seem to me your agent should have made it clear to the buyer if the seller complies the deal is still good. I'm curious to know how old is your house, is the basement completely submerged, do you have doors and window in the basement and a sump pump?
I have not spoken with my agent in great detail yet because it just happened today. I am sure we will be talking next week. By the way, we spent $1,100 for a install that took less than 3 hours and I am confident the parts cost less than $300! I am sorry but I do not subscribe to this radon fear and I think it has been blown out of proportion. Anyway, our home is 12 yrs old. The basement is submerged on 3 sides. It does have doors and windows and part is finished and the other 2 parts serve as garage space and unfinished space. No sump pump.
On the bright side, now you don't have to worry about the next radon test...
The due diligence fee the buyers paid you is all you get to keep. "Any reason at all" means just that - any reason at all.
I'm not sure I agree with Mike though from a buyer's perspective. Although repairs do not have to be done in the due diligence period, I can see a buyer being very nervous about continuing past due diligence if things haven't been fixed. They would have absolutely no recourse short of taking a seller to court which could be lengthy and expensive.
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