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On the day of closing the sellers are supposedly starting work on the repairs agreed upon in the contingency addendum. They have agreed to do these repairs. We don't know if they have started just yet. But as of this morning they are in breach of contract.
They were supposed to have this work done before closing.
We are starting to calculate damages as of today.
Anybody have any experience with this. we are in Virginia.
I believe that the sellers may be difficult - and the the selling real estate agents are probably at their wits end also.
Did you actually state in the contract the repairs were to be completed prior to closing? Is that verbage in your standard contract? The reason I ask, we have to actually write that into the contract, that the repairs must be done by closing so that the buyer has the right to either delay closing or cancel the sale altogether. Legally, if that is not in the contract, because the contract survives closing, the sellers are still obligated but the buyer has no recourse at the closing table to delay or cancel the sale if the repairs are not completed.
You could also escrow for the repairs, and once they are completed have the attorney release the escrowed funds. We generally escrow 1.5 times the estimated cost of repair, and also set a time limitation after which the money is released to the buyer and they can pay for the repairs.
You will need to review your contact. (I'd assume your broker has advised you as to the status.) This all varies state to state - so be sure to read!!
In Colorado;
We would have sent a "notice to correct" to the seller by the deadline stated in the contract. In the notice a deadline would need to be stated. Unless the repair is very minor, it's risky to make the deadline at closing since there is no time to re-inspect. Nevertheless, IF the seller agreed to the repairs, the repairs would have to be completed by the correction deadline. Again, it's best if that deadline is not the closing date.
Additionally, it is very rare that a contact can require "specific performance" - I've never seen a contract that doesn't have a "liquidated damages" (usually an amount equal to the earnest money) amount agreed to.
Again, my best advise to you is to get with your buyer's agent and re-read your contact.
Best wishes.
A typical solution is for the closing agent to put some of the sellers' proceeds into escrow to be held until the work is complete or to pay for repairs directly if the sellers drop the ball.
I sold a property and had an installation done by a licensed professional and now they are asking for the invoice. That was not part of the contract. Can they do anything against me? They are saying that it's a break of contract.
I sold a property and had an installation done by a licensed professional and now they are asking for the invoice. That was not part of the contract. Can they do anything against me? They are saying that it's a break of contract.
Why don't you want to give them the invoice? Some buyers use this as confirmation of repairs which saves them money reinspecting the house.
I sold a property and had an installation done by a licensed professional and now they are asking for the invoice. That was not part of the contract. Can they do anything against me? They are saying that it's a break of contract.
Quote:
Originally Posted by Silverfall
Why don't you want to give them the invoice? Some buyers use this as confirmation of repairs which saves them money reinspecting the house.
Invoices are also quite handy to have should there need to be a later warranty claim. Did your contract specify that the work be done by a licensed professional? If so, you need to prove that by furnishing the invoice if requested.
It sounds like the person was not licensed...otherwise the person wouldn't have an issue and more than happy to provide the invoice...
Of course you want an invoice to have some kind of warranty that the work has been performed...
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