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Old 12-06-2017, 09:12 PM
 
529 posts, read 973,165 times
Reputation: 601

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We are currently under contract on a house, and stipulated in the contract was a pool repair, which the seller had already scheduled before listing the house. We are currently five days out from closing, and the repair has not been made, nor is there any chance it will be done by COE. We have already pushed back closing once and pushing it out again will result in our rate lock expiring and us having to find intermediate accommodations, as we have already given notice at our current residence. I do not care to live in a hotel while the seller gets their sh*t together (which assumes they ever get their sh*t together and this isn't some elaborate ploy to wriggle out of selling their house), so if it comes to that I'd like to just give up on this house, re-up in our current apartment if possible or a new one if not, and find another house to buy.

So my understanding is that if the repair isn't done by the COE date, I don't have to close. Is there any other recourse I can take? Can I, for instance, sue for the $$ we spent on inspections and appraisal, etc.? What about compensation for my agent?
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Old 12-06-2017, 09:16 PM
 
Location: northern va
1,396 posts, read 1,750,000 times
Reputation: 1093
your contract should have language in it referencing performance/default and the potential outcomes for either party.

What was the pool repair? Something major, or is it minor enough (and safe enough an option) that you could get the money escrowed at closing and arrange with the pool company to do the work once you're the owner?
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Old 12-06-2017, 10:15 PM
 
1,729 posts, read 811,766 times
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What is the repair exactly and how much will it cost? What is written in the contract when you went back and forth on the issue during your due diligence period?

Your recourse is you can walk from the house and get your escrow back. Deal with the issue yourself and let it go. Try and get the escrow agent to withhold funds. Sue for specific performance. Close and sue after the fact.

Unlikely you'll be able to get inspection money back as that is one of the first things that comes for the buyer and would of been incurred regardless if the issue was there or not. Unless you specifically have some sort of penalty built into the contract for the sellers failure, if you walk from the deal you'll likely have little to no recourse to recover your due diligence items.

If you both agreed to the repair in writing, you could force them to follow through should you close and sued. If the amount or specific repair is written into the contract you could also inquire with the escrow agent to with hold the funds from closing until the repair is made and still close.

If seller balks and your still in the deal you can sue them for specific performance. You have tons of power in this situation, assuming you didn't half ass the contract, but the second you walk from the deal all that goes out the window.
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Old 12-07-2017, 06:01 AM
 
Location: The Triad (NC)
24,102 posts, read 51,972,874 times
Reputation: 24090
Quote:
Originally Posted by aridon View Post
If the amount or specific repair is written into the contract you could also inquire
with the escrow agent to with hold the funds from closing until the repair is made and still close.
Or perhaps to 'bond over' a larger amount.
Is the issue weather related or just that the seller doesn't have the ready cash?
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Old 12-07-2017, 09:16 AM
 
Location: Nothing, Idaho
1,820 posts, read 734,944 times
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Ask your agent about having the sellers put money in escrow for the repairs. You would then take care of the repairs yourself after closing.
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Old 12-07-2017, 09:28 AM
 
Location: Naples
514 posts, read 146,693 times
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Quote:
Originally Posted by I love boots. View Post
Ask your agent about having the sellers put money in escrow for the repairs. You would then take care of the repairs yourself after closing.
Yes, get a quote for the work needed and have the escrow company withhold 200% of the quote amount, and a disclosure where both parties sign and sellers get back what's left after the repairs have been made.


If the sellers don't agree to this they are jerks, and it would be unfortunate they wasted so much of your time.
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Old 12-07-2017, 09:58 AM
 
Location: Danbury CT covering all of Fairfield County
2,102 posts, read 5,462,806 times
Reputation: 898
Attorney time and have them escrow the amount due to the work plus 50%.
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Old 12-07-2017, 10:19 AM
 
529 posts, read 973,165 times
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The repair is a warranty repair. It is a crack in the gunite around the top of the pool, and they are still on the hook to pay for ~$1800 or so for it. According to the listing agent, the pool was drained and the demo was done, and then the company that was supposed to come and redo the gunite has never showed to finish the job. Were it not a warranty repair, it would likely be more expensive. I have no idea how much we would hold back, but it would have to be a significant amount for me to feel comfortable closing on a house with a demolished pool in the backyard, especially considering the backyard was the main reason we are interested in this house in the first place.

The repair was in the SPDS and the seller had already planned to have it done. Our offer included a stipulation that the repair was completed by COE. It is not a result of the inspection. We are about $1000 in the hole on this house so far, plus whatever it costs to move should we have to do so.

I'm not sure what we'll do at the point if the seller doesn't perform by the time our rate expires.

I should add that a couple weeks into the deal, the seller asked if they could stay through the holidays and move the close until mid January. Of course we said no, for a myriad of reasons. Had they asked for a closing in January from the get-go it would have been fine. We even told them when we put the offer in that we were flexible on the closing date, but I digress. Then we come to find out they wouldn't be moved out before the walk-through, so we pushed closing back a few days so we could see the house after they moved out before we signed papers. Anyway, I'm kind of wondering if this is some sort of stall tactic. We plan to walk by the house this weekend to see if the pool is actually demolished or not. If it is, I'll take them at their word. If not, we'll probably close and sue for specific performance after closing to get the repair done.
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Old 12-07-2017, 10:38 AM
 
21,184 posts, read 41,488,346 times
Reputation: 10663
You don't know if the warranty will transfer to new owners do you?
Will it?

I think this is something that will have a bad ending
The pool company might be in difficulty if they haven't taken care of it before now

And agree--lawyer time
But suing for specific performance after closing I think won't be very effective
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Old 12-07-2017, 10:47 AM
 
2,612 posts, read 2,705,553 times
Reputation: 5459
Escrow the money for the repairs, and go ahead and close.
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