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The HOA identified a bunch of items and we addressed them but, however, they have not done a reinspection yet and cleared the items. The buyer wants an approval from the HOA stating that everything has been addressed. Problem is - we are too close to settlement and don't have enough time to get the HOA to reinspect and approve (unfortunately, they are quite unaccommodating).
It appears that we have to sign the documents at settlement with an addendum stating that we would fix all these items (or, get the approval from the HOA). But, if we went ahead and signed all the documents and completed the sale of the house, would we not be OBLIGATED to fixing these items per the (new) buyer's interests, likes and dislikes?
What if they exploit the situation and have us fix it in a way we wouldn't have otherwise done (for instance: REPLACE vs FIX, etc)?
What are our options at this point? And NO - our agent is not helpful so I can't get any useful information from them.
Do you want to sell it or not? Why should the buyer be stuck with problems with the HOA. I would not advise my buyer to close on any house with outstanding issues. I would at least ask you to escrow the money for repairs and/or HOA fines.
> It appears that we have to sign the documents at settlement with an addendum
Revise the addendum to clarify matters. Be prepared for tricky negotiations. Both you and the buyer want to limit your liability. You need to either reach an appropriate agreement or be ready for them to walk.
HOAs govern the outside right? That would mean landscaping, lawncare, bushes, trim color on your house? Correct? Can you not take pictures and show the buyer the proof that you completed what you were told to do? Otherwise, you're talking in code and the common sense answer is for the buyer to not close on the house until they have proof of repairs. The Texas contract calls for an automatic 15 day extension if repairs aren't completed.
Unfortunately, it is not spelled out in the contract :-(
Geez.... I would never sign that contract especially if no details is spelled out & no time frame (very important for they the buyer to get clear what to fix & by when to fix it or the whole promise to fix contract will "expire" say by 3rd month etc.).
What if the buyer were to "abuse" your goodwill to fix the problem & have you keep "fixing" the item list that gets longer every time??? What if the buyer were to have you come back "again & again" to fix every new problem??? Will you be that willing slave to that contract???
This addendum based on what you've said sounds way too open ended and vague. I would never advise a seller to sign it. Generally, when I've had a situation where repairs have not been completed by closing we close anyway but negotiate a "hold back" which is held in escrow until the matter is resolved. In your case, the hold back would go toward covering any further necessary repairs or HOA fines. Whatever is not used up by "X" date would be returned to you.
Unfortunately, it is not spelled out in the contract :-(
I am sure they will just be reqired to pass HOA inspection and so sated.
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