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or can you just walk away from the contract at that point? Since my recent heart attack, I made up my mind to move much closer to town with the hospital and all my doctors. I put a contract on an older bungalow two weeks ago and we had the home inspection yesterday (it was delayed because the tenants had turned off the utilities and the sellers didn't realize it). Anyway, during the inspection I noticed there were a lot of things I didn't like, such as the fact that each of the bedrooms has just ONE electrical outlet. Heck, even my 1927 house has more than that. The inspection report also uncovered some fairly serious issues of standing water in the crawlspace, as well as temporary metal jacks being used as permanent supports (they've been there so long they're rusting from the constant moisture). Now, these issues are similar to ones I've dealt with in my own house, and they cost me plenty. The house under contract has been generally neglected over the years (probably a rental) and overall, I just am no longer interested.
My agent said the sellers have to either fix these issues for a lender to approve the sale or give me a credit. There's no way that I'm paying for the fixes; I know how much it costs to do it properly and I'm already shelling out 40K for the down payment. I don't have an inexhaustible amount of money to spend up front as I'll be selling my current house afterwards, and there are other things thus house needs inside to make it comfortable to move into (painting, plaster patching, floor refinishing, etc.)
Am I legally entitled to walk away and retain my earnest money at this point without any further negotiation?
In NC you could walk away within a designated time period ("Due Diligence"). Previous to that you could have walked away if there was a clause in your offer to purchase that had a contingency based on repair requirements.
What does your contract say? In my state contract buyers must give the seller the opportunity to fix some types of inspection items. If the seller says no or tries to negotiate the buyer can walk away.
Most RE contracts allow the buyer to back out for Any reason within the time allowed for the hone inspection. YOU have the contract you signed, give it a read (sorta should have done that prior to signing it).. if you don't understand it, you should be talking with your buyers agent about it (or a RE lawyer).
What does your contract say? In my state contract buyers must give the seller the opportunity to fix some types of inspection items. If the seller says no or tries to negotiate the buyer can walk away.
"What does your contract say?"
As is so often the case here on CD, that is the only right answer.
If you and your agent or your agent's broker don't understand the contract, you should get an attorney to review it asap, and tell you what your rights and responsibilities are.
"What does your contract say?"
As is so often the case here on CD, that is the only right answer.
If you and your agent or your agent's broker don't understand the contract, you should get an attorney to review it asap, and tell you what your rights and responsibilities are.
I read the contract prior to signing it, I just don't remember the particulars concerning the home inspection requirements. (I swear I lost some brain cells when my heart stopped during the heart attack, lol.) Anyhoo, I'll re-read it today before discussing the findings of the inspection report with the agent. Even though she's my agent I know she would like the sale to go through (quel surprise!), but I will use every legal means to ensure it does not. I have no interest in their doing repairs if they have them accomplished in the same shoddy manner as the previous ones were made. And I'm for sure not making any with MY own $$.
OP, I think you can ask the sellers to make whatever repairs you would like. They can agree, say no, offer a credit toward them but not make them, etc.
Something like electrical not being to code falls (for me) under a much higher level than just a "repair" like a single outlet being miswired. If it were me and I liked this house as a buyer, I would ask for a credit toward the cost of that. I would call some electricians to have an idea of how much to ask for.
OTOH, if I were selling an old non-updated home I would expect the buyer to understand it may need upgrades to things like this, or plumbing, or have some issues that have happened over time. So I might not be willing to pay a buyer anything because I would expect that they understood that older homes can be in varying kinds of conditions and price the house according to what it has going on (or not.)
But at any rate, this is what the inspections are great at-- creating understanding of the actual condition of the home for both parties. Good luck!
You are asking us to interpret a contract from another state that we have not seen. Not really the advisable way to get or give good advice.
In our area, with our contracts, you can walk for any reason during the inspection period. You don't have to ask them to do anything. But the only contract that really matters is yours. I would ask your agent.
Don't tiptoe around it.... tell your agent you do not want the house and you want her to do whatever it takes to rescind and get your earnest money back.
Last edited by Diana Holbrook; 07-07-2018 at 07:50 AM..
My agent said the sellers have to either fix these issues for a lender to approve the sale or give me a credit.
This quote doesn't make sense, btw... If the bank won't finance the house in its current condition, they're not going to accept a credit for you to fix it later either. It would have to be fixed prior to close.
You are asking us to interpret a contract from another state that we have not seen. Not good!
In our area, with our contracts, you can walk for any reason during the inspection period. You don't have to ask them to do anything. But the only contract that really matters is yours. I would ask your agent.
Don't tiptoe around it.... tell your agent you do not want the house and you want her to do whatever it takes to rescind and get your earnest money back.
I just did exactly that. It turns out that, per the contract, if we deliver an entire copy of the inspection Report and a Notice voiding the Contract prior to the Home Inspection Deadline, then I'm free and clear. Yay!
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