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We are supposed to close on a house within a week located in Houston. Inspection, appraisal, etc are all complete. There is some minor damage due to the hurricane, and there may be more (that we can't see). Could we walk away based soley on the Hurricane?
What problems do you think the house may have sustained that you can't see? Sounds like to me, that you have cold feet and just don't want to buy the house....
What problems do you think the house may have sustained that you can't see? Sounds like to me, that you have cold feet and just don't want to buy the house....
shelly
We are concerned that the value of the house and area are impacted by the event.
Also, is it really cold feet to be concerned about buying a house in an area that just got hit by a hurricane?
We are just trying to figure out our options, in case we don't like those proposed by the seller. The damage as of now is general clean up and the fence has been torn down and there is no power. Not sure when the power will be back. Couldn't see the roof or back and inside of house.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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I'm no attorney and maybe austin willy (an attorney) can provide mo' bettah advice, but in general if a home is destroyed by an act of god, the deal is void.
If the home is damaged, the seller's homeowners insurance should take care of it.
If there is a decline in the Houston market because of this act of god, it's at your risk. If you want out of your contract at this late date, be prepared to forfeit your deposit or at least have to battle to get it back.
you can do the final walk through and ask for another inspection. It will cost you 250-350 dollars, but I would it. What Cat did it hit houston with ?
Just visit during the day.....what type of roof ? Shingles, barrel tile ? If there is roofing materials blown away, I would DEFINITELY get another inspection. If though, on the other hand, there is no OBVIOUS roofing damage...then the structure is sound and I wouldn't worry about it !
bad timining though..I feel for you as I always wondered what I would do in the exact same situation. Well, the above is what I would do...so there u go.
I am not a attorney and not a pro so I am sure some one here can correct me if wrong. but this is what happened here after Ivan tore us up. A guy I know had sold his house and the hurricane hit prior to closing and trashed the house. It voided the contract but he turned around and sold the place as is for a whole lot more and collected the insurance check! As everyone knows Florida prices skyrocketed and after that storm there was not many solid houses for sale and alot being sold as is. It was in my opinion a sellers market.
you can do the final walk through and ask for another inspection. It will cost you 250-350 dollars, but I would it. What Cat did it hit houston with ?
Just visit during the day.....what type of roof ? Shingles, barrel tile ? If there is roofing materials blown away, I would DEFINITELY get another inspection. If though, on the other hand, there is no OBVIOUS roofing damage...then the structure is sound and I wouldn't worry about it !
bad timining though..I feel for you as I always wondered what I would do in the exact same situation. Well, the above is what I would do...so there u go.
Some of this advice is terrible and probably incorrect. You should get another inspection but don't assume you're entitled to repairs. Discuss it with your agent and closing attorney as the contract should address natural disasters. I also wouldn't wait until the final walkthrough. If there are issues you need to know asap so the seller or insurance can get it corrected. Just because you can't see anything don't assume there is no damage.
Most contracts should have a provision that outlines a dollar amount or percentage of the purchase price in damages that occur before closing and the remedies that can be taken.
As an example it may say, "If, after the effective date, the property is damaged by fire or other casualy before closing and cost of restoration does not exceed 1.5% of the purchase price, cost of restoration shall be an obligation of the seller and closing shall proceed pursuant to the terms of the contract. If the cost of restoration exceeds 1.5% of the purchase price buyer shall either take the property as is together with the 1.5% or receive a refund of all deposits thereby releasing buyer and seller of further obligations."
So basically you need to check if there is a provision like this in your contract and what the dollar amount of the damages are.
In TX our contracts say the seller has until the day of closing to restore it to the original contract condition or the buyer can extend closing 15 days. If this cannot be done the buyer can terminate the contract.
A buyer can also accept assignment of the insurance money plus the deductible and elect to close (short version).
So if the repairs cannot be done by closing, you can walk on the deal. Get your agent to review Paragraph 14 Casualty loss with you.
Their homeowners insurance or they themselves should take care of any damage. They are still are the owners and must endeavor to present at closing exactly what you offered to buy.I would do another walk thru ASAP. I think that money can be held back and can be place in an escow for repairs if they can't be done before closing....
just a thought
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