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I signed an agreement of sale for a one family with a home inspection/termite and mortgage contingency. After the home inspection, I sent a reply addendum to the seller asking for termite treatment, repair of an active leak (the second floor bathroom had a leak so bad the ceiling came down on the first floor right below the bath, and we had to shut the water off before the inspection was complete). I also requested a credit at closing for repair of certain problems (failed joist, live wires on all floors, wrong size CB for wiring, failed roof on first floor extension with an active leak). I used the median estimate figure from the home report for each item.
I did not request anything else, or renegotiate the price, even though the house had been listed as having "all good systems", and the inspection revealed a failed main roof (slag), heater/hot water system that were well past life expectancy, and evidence of water damage/mold of unknown origin. The seller refused to do or give back anything, even though this was not listed as an "AS IS" sale.
I sent a notice of termination/release of funds the day after the seller's refusal. That was 15 days ago, and the seller has still not signed the release or come forward agreeing to the inspection reply ( I also had applied for a mortgage and was only waiting to order the appraisal, so everything on my end was done within the time periods specified in the agreement).
My buyer's agent has been less than stellar, and keeps telling me she is leaving messages with the listing agent, and that they have told her they will get it signed.
What I need to know: How long is typical to get a signed release and return of escrow in this situation? I am not familiar with PA real estate law, coming from out of state (NY), and have never purchased without a lawyer representing me before this (something I now regret). Should I hire a lawyer to get the escrow back, or give them a little more time? And, if I incur legal fees, can I sue the seller for reimbursement of those fees?
Advice appreciated, and thanks in advance for reading this.
Your Purchase Contract should have included terms regarding seller liability for 'defects identified during the inspection' and also for return of your earnest money deposit.
Did you specify how long the seller had to respond to your request? Also, simply requesting a 'credit' may not be the only option (how about repair of the items?). Was the roof defective or simply 'past it's assumed life expectancy?'
The owner/seller may feel like you are simply trying to get an unnecessary credit/concession, because you changed your mind about buying and now want out of your purchase contract. You will likely need an attorney, although return of your earnest money deposit should not be entirely up to the seller (that's what an 'escrow' account is about).
The time periods are specified in the contract. The seller had five days to either agree to the inspection addendum or return the deposit money. That time period expired ten days ago (15 days total since I submitted the addendum).
The credit was suggested by the agents instead of seller repair, as the seller doesn't want to do anything. The house is vacant (it was the seller's childhood home; he lives nearby and his brother had lived there until late 2011), and the water and gas had been shut off prior to the inspection.
My main concern was the leak and termite activity, since the loan officer wants no termites and no leaks at the appraisal, and I don't want to spend money in a house I don't own yet to get these things done before settlement.
The seller's lack of concern for the active leak/damage that occurred at the inspection (I was the one who had to run around looking for a bucket to catch the water that was coming down from the ceiling on the main floor below the bathroom), and the realization that nothing had been done to upgrade or even maintain the house for over 25 years, is what caused me to reconsider the purchase, but the seller did have the option to agree to the addendum and I would have moved forward. His agent was urging him but he wouldn't budge. This is probably why the house has been sitting empty for so long - he was overpriced and is unreasonable, and the longer the house sits the more it deteriorates.
The listing agent is holding the escrow; he will not release it without the seller's signature.
I signed an agreement of sale for a one family with a home inspection/termite and mortgage contingency. After the home inspection, I sent a reply addendum to the seller asking for termite treatment, repair of an active leak (the second floor bathroom had a leak so bad the ceiling came down on the first floor right below the bath, and we had to shut the water off before the inspection was complete). I also requested a credit at closing for repair of certain problems (failed joist, live wires on all floors, wrong size CB for wiring, failed roof on first floor extension with an active leak). I used the median estimate figure from the home report for each item.
I did not request anything else, or renegotiate the price, even though the house had been listed as having "all good systems", and the inspection revealed a failed main roof (slag), heater/hot water system that were well past life expectancy, and evidence of water damage/mold of unknown origin. The seller refused to do or give back anything, even though this was not listed as an "AS IS" sale.
I sent a notice of termination/release of funds the day after the seller's refusal. That was 15 days ago, and the seller has still not signed the release or come forward agreeing to the inspection reply ( I also had applied for a mortgage and was only waiting to order the appraisal, so everything on my end was done within the time periods specified in the agreement).
My buyer's agent has been less than stellar, and keeps telling me she is leaving messages with the listing agent, and that they have told her they will get it signed.
What I need to know: How long is typical to get a signed release and return of escrow in this situation? I am not familiar with PA real estate law, coming from out of state (NY), and have never purchased without a lawyer representing me before this (something I now regret). Should I hire a lawyer to get the escrow back, or give them a little more time? And, if I incur legal fees, can I sue the seller for reimbursement of those fees?
Advice appreciated, and thanks in advance for reading this.
How much is escrow? If less than a few thousand, it may not make (financial) sense to get a traditional attorney. Read the contract carefully, there should be a clause about the prevailing party recouping legal fees. You could try online legal sites which are much cheaper, but usually only give you a onetime answer. Make sure your question(s) are very specific. Try avvo.com and legalzoom.com.
Also, depending on state laws, it may be difficult for the seller to sell it to anyone else with an active contract (and disputed money in escrow). Things could get very messy for the seller if they refuse to release escrow.
Your buyers agent should be helping you with this! It is their responsibility. Email your agent and get them on the record. Create a paper trail. If they dont help, contact your state's RE Commission (not Association) and they should be able to help you determine your rights. If your agent knows that you will be contacting the RE Commission, it may to light a fire under their posterior.
How much is escrow? If less than a few thousand, it may not make (financial) sense to get a traditional attorney. Read the contract carefully, there should be a clause about the prevailing party recouping legal fees. You could try online legal sites which are much cheaper, but usually only give you a onetime answer. Make sure your question(s) are very specific. Try avvo.com and legalzoom.com.
Also, depending on state laws, it may be difficult for the seller to sell it to anyone else with an active contract (and disputed money in escrow). Things could get very messy for the seller if they refuse to release escrow.
Your buyers agent should be helping you with this! It is their responsibility. Email your agent and get them on the record. Create a paper trail. If they dont help, contact your state's RE Commission (not Association) and they should be able to help you determine your rights. If your agent knows that you will be contacting the RE Commission, it may to light a fire under their posterior.
Good luck.
Thanks.
My buyer's agent has been nothing but a hindrance from the start: She advised me to offer much higher than the price that was finally agreed to (not that it matters now), initially wrote up the contract and addendum incorrectly, and did nothing to negotiate the home inspection reply. The listing agent was the only one trying to put the deal together all along.
I spoke to my NY attorney, and he told me to give it another week before taking to another level, but it wouldn't hurt to contact the listing agent directly at this point, just to give it a gentle push. The escrow is 5% of the sale price. I am relocating and want to resolve this before signing another contract, so I am a little anxious to get it done quickly. Interest rates have gone up considerably since the initial offer as well, so it's been a real loss in many ways.
Quote:
Originally Posted by MrRational
Yeah, you need a lawyer.
Even without this immediate hiccup EVERY buyer needs a lawyer.
I agree. Never again will I allow a buyer's agent to prepare a contract and be my sole representation.
Turns out the seller was away, and then the listing broker was away. My (ex) buyer's agent never told me any of this, and stopped answering my messages. I ended up working with the listing agent directly.
It took 29 days from when the contract was terminated to get a check in my hand. Maybe not too bad, considering the time of year, but not knowing what was going on made it seem longer.
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