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Old 06-18-2018, 10:30 PM
 
1,807 posts, read 2,327,708 times
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So here is the scenario: We put an offer in on a house. At the time we made the offer, we were aware that there was a one year old mechanics lein on the property. Seller accepted our full price offer. We are in the process of negotiating repairs. We made a counteroffer, but also tossed out the potential for a cash “as is” purchase (with a price concession). Initially seller said no to “as is” offer, but gave a counter with most ( it all) of our requested repairs. We countered, to which he gave us an A or B option. “A would involve even more of our requested repairs, or B would be the cash “as is” option we offered previously. We selected The cash “as is,” option. We were just waiting for him to double sign the contract.

On the last day he had to respond, our agent contacts us and says that seller needs more time, because he does not want to fulfill mechanic’s lein. Evidently, there is some bad blood between the contractor and seller. He basically says, “it’ll be a cold day in ...”. He wants “time” to resolve the lien. We told our agent to give him a 48 hour extension to resolve issue, but we weren’t going to be strung along. It’s been 48 hours, and we haven’t heard a peep.

From our perspective, we have made financial investments in this property. We negotiated in good faith, and accepted the offer he made (which was the same offer we had made previously). Do we have any recourse? can he simply change his mind. Can we recover our financial costs (although it does not appear he has a history of paying his debts anyway).

What really pisses us off is that just last week we saw another property that was nearly perfect, but opted to turn that property down (which is now under contract) in order to honor our commitment on this deal. Had we known he was going to pull this stunt, we would have pulled out of this deal. What can we do now (if anything)? Thanks.
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Old 06-18-2018, 10:39 PM
 
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What investment?
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Old 06-18-2018, 10:54 PM
 
1,807 posts, read 2,327,708 times
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Quote:
Originally Posted by RoamingTX View Post
What investment?
Mainly home inspection. Not sure about other costs yet (i.e. appraisal, Title Insurance , etc.). Those probably will not be incurred. I’m really pissed we didn’t walk last week, but figure we probably don’t have much of a leg to stand on. It’s a sh***y way to conduct business, but there are no rules against being a sleeze.

We are trying to do a 1031 Exchange, so we need to the something suitable fairly quickly.
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Old 06-18-2018, 11:15 PM
 
Location: San Francisco Bay Area
4,150 posts, read 2,159,275 times
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Where are you hoping to purchase?
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Old 06-18-2018, 11:36 PM
 
1,512 posts, read 564,668 times
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Quote:
Originally Posted by dmills View Post
Mainly home inspection. Not sure about other costs yet (i.e. appraisal, Title Insurance , etc.). Those probably will not be incurred. I’m really pissed we didn’t walk last week, but figure we probably don’t have much of a leg to stand on. It’s a sh***y way to conduct business, but there are no rules against being a sleeze.

We are trying to do a 1031 Exchange, so we need to the something suitable fairly quickly.
None of that is an investment, and nobody in the deal cares if you’re pissed.

Sorry about the deal - but you’re pissing into the wind.
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Old 06-18-2018, 11:57 PM
 
917 posts, read 403,332 times
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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.
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Old 06-19-2018, 03:26 AM
 
511 posts, read 131,219 times
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Whay are properties even listed if there are liens against it?
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Old 06-19-2018, 03:46 AM
 
Location: Cary, NC
31,594 posts, read 55,307,520 times
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Quote:
Originally Posted by STLgaltoo View Post
Whay are properties even listed if there are liens against it?
It is very common to list encumbered properties.
The contract should indicate that all liens will be cleared prior to closing.

A mortgage is a lien, for example.
A furnace or AC unit with a loan financed through a utility company is a common lien

The seller is just playing stupid games, from the OP's description.
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Old 06-19-2018, 04:40 AM
 
Location: The Triad (NC)
26,847 posts, read 57,851,863 times
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Quote:
Originally Posted by dmills View Post
We put an offer in on a house.
Seller accepted our full price offer.

At the time we made the offer,
we were aware that there was a one year old mechanics lein on the property.
This implies the seller doesn't have much cash available.

Quote:
We are in the process of negotiating repairs (after inspection).
On the last day he had to respond, our agent contacts us and says that seller needs more time,
because he does not want to fulfill mechanic’s lein.

Evidently, there is some bad blood between the contractor and seller.
Probably a lack of cash as well.

Quote:
He basically says, “it’ll be a cold day in ...”. He wants “time” to resolve the lien.
He wants (needs) the lien to resolve at settlement... with YOUR cash.
Make that easy for him. Do your own repairs.
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Old 06-19-2018, 05:14 AM
 
1,807 posts, read 2,327,708 times
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Quote:
Originally Posted by MrRational View Post
This implies the seller doesn't have much cash available.

Probably a lack of cash as well.

He wants (needs) the lien to resolve at settlement... with YOUR cash.
Make that easy for him. Do your own repairs.
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.
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