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If the other property is available I’d back out, eat the inspection cost, and go for the other one. You have no recourse for an inspection that is meant to protect you, anyway.
I’m so sorry the seller is being like this, but if he won’t deal with it in the 48 hour window it’s not worth more of your time or energy.
I’m inclined to agree - especially with your last statement.
Liens get financially fulfilled/cleared at the closing. Seller has to provide a clear title to the land, and if you're buying with a mortgage and title insurance, they require this. If the seller has an issue with the guy who did the work leading to the mechanic's lien, he has to engage in separate litigation with him.
This seller does not sound like a rational person, and there will be other issues that come up. You may as well give this one up unless there is some compelling reason why you want this particular property.
Why is this thread missing information about the mechanic's lien? Did I miss it? What is the repair, improvement, or service associated with this lien? What is the $ amount to satisfy the lien? Blame the seller? Is it possible that the contractor is a piece of dirt who failed to complete, got caught in a shady practice like taking money from the seller to finance materials on another job, or using recycled materials instead of new? Likely more than just a cheap, greedy seller.
OP, I understand why you are upset, but maybe you have more details that might make the situation easier to understand? Frankly, the seller cannot finish the transaction and somehow screw the contractor out of a payment--that is probably a suit or small claims court between those two--not going to help you get it done.
Hope you find another place soon. There is always another property out there.
Why is this thread missing information about the mechanic's lien? Did I miss it? What is the repair, improvement, or service associated with this lien? What is the $ amount to satisfy the lien? Blame the seller? Is it possible that the contractor is a piece of dirt who failed to complete, got caught in a shady practice like taking money from the seller to finance materials on another job, or using recycled materials instead of new? Likely more than just a cheap, greedy seller.
OP, I understand why you are upset, but maybe you have more details that might make the situation easier to understand? Frankly, the seller cannot finish the transaction and somehow screw the contractor out of a payment--that is probably a suit or small claims court between those two--not going to help you get it done.
Hope you find another place soon. There is always another property out there.
All I know is that is was for some repair work (about $15k worth). Apparently he hasn’t paid any of it, and the lien was first placed about 15 months ago. My point is that he’s known about it for a while, so if he disputed the validity of the claim, he should have resolved it before putting the property on the market... and actively negotiating a sale. As I understand it, the contractor would have had to satisfy a judge (or some other authority) that it was a valid debt to get the lein in the first place
You knew there was a 1-year mechanics lean on the property before making your offer. Therefore, you accepted the risk that a potential third-party situation could interfere with the sale. Regardless of what the seller agrees to, the person holding the lien must agree to clear the lien must agree to drop it, before your sale can be finalized.
It's understandable that you are upset the sale has not gone as you hoped it would, but, that's part of the risk you accepted.
All I know is that is was for some repair work (about $15k worth). Apparently he hasn’t paid any of it, and the lien was first placed about 15 months ago. My point is that he’s known about it for a while, so if he disputed the validity of the claim, he should have resolved it before putting the property on the market... and actively negotiating a sale. As I understand it, the contractor would have had to satisfy a judge (or some other authority) that it was a valid debt to get the lein in the first place
Is the lien even enforceable? Probably depends on the states lien laws. I've got one on one of my properties for $14,000. It doesn't mean anything because they never filed suit against me. When I sell it title company will figure that out or I just have to have a lawyer fill out an affidavit.
I suspect the seller didn’t realize the lien would be paid off at closing. Probably thought it would either transfer to buyer or just disappear into thin air. Hence his remark about a cold day in hell before he’d pay the guy.
This guy is an SOB. Basically, he's saying that he doesn't want to sell, because the lien is then gonna get paid out of his profit on the property. He wasn't operating in good faith.
The money you have already spent on inspections is gone. Moving forward, do you want this property? If yes, how much is it worth to you? Don't count on this guy to pay to do any repairs - make it a straightforward cash offer for As Is condition, and tell him that YOU will pay the mechanic's lien (since he really doesn't want to) at closing. And offer him the right for you cash price in as is condition, with YOU also paying the mechanic's lien.
Sometimes people's emotional issues can be used to your own advantage in real estate dealings.
That’s the point. We offered just THAT. We offered to do ALL the repairs, and let him walk - for a small fee (price concession). He walks away, and the lien is resolved. It does t get any easier than that. He essentially “agreed” to that, then started this crazy stuff about not wanting to pay the contractor the money he owes.
If that was the way he felt, he had no business listing the property until he resolved the issue. He sounds like he is a cheap, greedy bas***d, with poor business ethics.
You don't know what he owes on the property though. He might not be able to take anything off the price. I bet he has a real small margin of what he owes against what he's selling it for. I'd walk!
You knew there was a 1-year mechanics lean on the property before making your offer. Therefore, you accepted the risk that a potential third-party situation could interfere with the sale. Regardless of what the seller agrees to, the person holding the lien must agree to clear the lien must agree to drop it, before your sale can be finalized.
It's understandable that you are upset the sale has not gone as you hoped it would, but, that's part of the risk you accepted.
It seems like the hold up is not the holder of the lien but the seller still not wanting to pay the lien off at closing with funds from the sale. Seems like a dumb idea to list a property for sale if you're hell bent on not paying a lien in full - not sure what the seller expected to happen here....
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