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Will try to keep this short. I am in South Carolina. Husband and I purchased a duplex in Sept, 2018. Paid $128k. It was a new build, never occupied. Realtor owns RE agency. He is also a contractor. Our first time looking at property, he told us he would be the builder for the next phase of development, but was not the builder for our unit. We offered the list price, because it was contingent on our home selling in a different state. Signed contract electronically.
Once in the home, we found a lot of issues, such as cracks above doors, doors were hard to open and close, crooked windows, cabinet veneer peeling off, electrical and plumbing problems, etc. While cleaning shelves in closet, I found a building permit issued to the realtor's contracting business. Humm...
Made a list of all the issues. Called a home inspector to come out, just to make sure I had not missed anything. (Yes, I know, should have done this prior to closing) Inspector arrived, immediately told us, he was very familiar with this property as he was also a general contractor and had met the developer here to give an estimate on finishing my unit and one next door. He told us, the foundation was off square and framing was not square which the outer walls were off foundation. He told developer he would have to tear down and start over. Inspector advised me to pull all permits and inspection reports from county and hire an attorney. He added two things to my list, which was now, a very long list with pictures.
Found out realtor/builder had taken over project after framing was completed and prior contractor was fired. The units had sat unprotected from the elements for 9 months. Notified realtor/builder and the developer/seller with defect/repair list with pictures. Filled a 1 1/2" binder. Realtor/builder responded and set up meeting, seller did not respond. Builder said he would fix but after months, did nothing. It is now 10 months later and the one thing he did made the home a "patcwork" house. Different colored concrete in driveway and at entrance doors. Terrible concrete work. Removed 20" of siding from bottom around both units and replaced rotten wood. Then replaced siding with a different style and lighter
Lawyer would take a third of settlement, which we could only sue for what we paid for home.
That plus paying off $40k mortgage wouldn't leave us with enough to purchase another home and keep a low mortgage. We are on SS income. We have tried to work with builder, but he is not dependable and extremely dishonest.
We came up with a solution to just sell the house. Realtor says not any reason we can't sell and he would not charge us a commission. I stated upfront, we would not be responsible for any repairs and it had to be sold "As Is". Property has not been listed yet, but an agent in his office has a client whom she brought to look at our home. Client made an offer and a contract sent to us for electronic signatures. Of course there is the clause (page) which states buyer can have home inspected and seller will either fix repairs or refuse. Then there is a disclosure form, which realtor checked all the "No Representation) blocks. The agent in his office will get 2.5% buyer's agent fee. With the price of home and our fees to close, we will be losing $15K, plus they want the closing to be in 20 days.
I sent him email requesting contract to be changed to reflect "Non Disclosure between buyer and seller" block being checked and an addendum to contract stating it is "As Is" and we are not responsible for any repairs. I requested the buyer's signature must be executed as acknowledgment before we would sign contract. He sent contract back to us with an addendum which says" Seller to convey property in "As Is" condition. Still had CDS form attached. Sent back again and made my request a 2nd time. I can't trust him, or believe anything he says. I am at the point of filing complaints with the SC LLR and the SC RE Commission. Am I over reacting in this process?
As a realtor, he has crossed the ethical line and as a builder, he has broken many ICC building codes.
If I’m understanding correctly… You are objecting to a disclosure form, and an inspection contingency.
First of all please understand that these contracts and forms vary widely across the country and I have not seen your local forms and I’m not familiar with your local law.
That said, forms that sound similar to the two you are talking about are also used in transactions here. On the disclosure form... In our state completed disclosure forms are required with very few exceptions. You don’t have to fix defects but you do have to disclose them. Failing to answer all of the questions is grounds for termination of the contract, and not answering them truthfully would be grounds for legal action.
On the inspection issue, again not familiar with your specific forms but in our area a buyer can want the right to do a complete inspection, even if you are “on record” as not being willing to make any repairs. They can and should still do a complete inspection of the property, and can still ask for repairs as part of the inspection contingency. You can say no to any requests, they would still have the right then to walk away. In our area they can walk away without making any request at all.
Since you have no trust in your own real estate agent, if I were you I would seek legal counsel to be sure on the disclosure laws in your state.
This shady realtor may be sending you a lifeboat in the form of a buyer who is willing to buy the property as-is, if that is who they are. But you need to be very sure that you have made any and all of the disclosures to them you are required to give about the defects you have knowledge of.
Are the buyers buying the property cash or are they getting any kind of financing? That info should be part of the offer.
Sooooo....is there a question in there somewhere about the process or just if you're overreacting?
I can't really tell you if you're overreacting. Not enough info to work off of. I don't think the as is matters much, other than making sure the buyer knows you won't do expensive repairs if that's the case.
Question: When you bought the home, did he disclose his financial and work involvement in the home? Did you sign a representation agreement with him? If he had a financial stake in the sale of the home as an owner, he can't represent you as a buyer per state guidelines.
There are so many problems here, i cant even begin to pick the situation apart. I feel for you and it does sound like some shady business has been happening since they broke ground. I would pay an attorney for his opinion. Might be hard to find someone who is willing to hear you out, though, bc if they do work for the Realtor/builder, there might be a conflict of interest. One quick thing is that the agent cannot be the one to fill out the seller’s disclosure form, it’s to be done by the owner (at least in my state). So that right there and him checking that there is nothing wrong is fraudulent.
ETA: Just reading it again, I think I misunderstood where you said he filled out the disclosure form. Which form do you mean? Where he said no representation?
This is a good point. Checking no representation doesn't get you off the hook legally for not disclosing material facts. In fact, a good lawyer might pick you apart in court for checking no representation and hiding material facts that both you and the agent are aware of. I'm in SC btw, so I know our disclosure. Also, you're supposed to complete that form, not the agent.
You should get a legal opinion. You may need to go after the agent that represented you on the purchase that was also the builder. I defer to legal experts on that one.
ETA: Just reading it again, I think I misunderstood where you said he filled out the disclosure form. Which form do you mean? Where he said no representation?
The SC Property Disclosure has 3 boxes for disclosing repairs needed that the seller is aware of: Yes, No, and No Representation.
The No Representation is basically "no comment" but doesn't absolve the seller of not disclosing issues they are aware of. Sounds like the seller needs an attorney and a new agent...except the agent is trying to keep himself out of hot water so he's working for free to try and help the person get rid of a problem house he built. But in doing so, it seems he's exposing the seller to potential legal issues.
I can understand a reluctance to pursue a lawsuit, but by trying to conceal defects you may just be changing your status from a Plaintiff to a Defendant.
Your "agent" (in reality, he seems to represent no one's interests except his own) would also have a duty to disclose known defects.
An excerpt from the South Carolina disclosure form:
Quote:
If a question is answered “yes” or asks for a description, then owner must explain or describe the issue or attach a descriptive report from an engineer, contractor, pest control operator, expert, or public agency. If owner attaches a report, owner shall not be liable for inaccurate or incomplete information in the report unless owner was grossly negligent in obtaining or transmitting the information. If owner fails to check “yes” or make a disclosure and owner knows there is a problem, owner may be liable for making an intentional or negligent misrepresentation and may owe the purchaser actual damages, court costs, and attorney fees. If a question is answered “no” for any question, the owner is stating that owner has no actual knowledge of any problem.
If a question is answered “no representation” for any question, owner is stating that owner is making no representation regarding the conditions or characteristics of the property, but owner still may have a duty to disclose information that is known or should have been known.
If a question is answered and subsequently new information is obtained or something changes to render the owner’s answer incorrect, inaccurate, or misleading (example: roof begins to leak), owner must promptly correct the disclosure. In some situations, the owner may notify the purchaser of the correction. In some situations, the owner may correct or repair the issue.
If owner is assisted in the sale of property by a real estate licensee, owner remains solely responsible for completing and delivering this disclosure statement to the purchaser. The real estate licensee must disclose material facts about the property if the real estate licensee knows or reasonably should have known about the issue, regardless of owner responses on this disclosure. Owner is solely responsible to complete this disclosure as truthfully and fully as possible. Owner and purchasers are solely responsible to consult with their attorneys regarding any disclosure issues. By signing below, owners acknowledge their duties and that failure to disclose known material information about the property may result in owner liability.
This is a good point. Checking no representation doesn't get you off the hook legally for not disclosing material facts. In fact, a good lawyer might pick you apart in court for checking no representation and hiding material facts that both you and the agent are aware of. I'm in SC btw, so I know our disclosure. Also, you're supposed to complete that form, not the agent.
You should get a legal opinion. You may need to go after the agent that represented you on the purchase that was also the builder. I defer to legal experts on that one.
Agreed.
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