We are closing on a home on the 27th but so far the seller has not completed items in contract.?

Question

We were originally to close on the 22nd but the appraisal got delayed so we had to reschedule closing. One of the conditions in the contract was that seller would complete repairs to front yard from stump removal including sod. So far nothing has been done to the yard and we close in 4 days. Is this unusual? If we refuse to sign because they did not fulfill their end of the contract can we get money back for the appraisal and inspection?

Answer 1

You have a number of choices depending on the situation.

1. If you have a buyer agent representing you, tell your agent that you refuse to close until the repairs have been done. If the seller has agreed to the repairs but has not yet done them you can delay the closing until they are done (if you still want to purchase the home). Another alternative is that you might ask your agent to help you get estimates as to the cost of these repairs. Then you can either ask the seller to give you that amount of money in lieu of repairs (and do them yourself after closing) or adjust the purchase price to compensate you for the money you will have to spend to do them yourself. A third alternative is to allow the repairs to be completed after closing and still close on time. The amount of money that your bids indicate that the repairs will cost can be held in escrow by the title company until the seller has had them done to your satisfaction. Once that happens, you notify the title company and they can then release those funds to the seller. Your buyer agent can help you with these options and prepare the appropriate paper work.

2. If you are not represented by a buyer agent and are dealing with the listing agent (who represents the seller), that agent can help you as well, even though that agent is technically representing the seller. The Realtor Code of Ethics demands that all agents treat customers as well as represented clients fairly and honestly. Tell the listing agent which of the above options you want and let the listing agent negotiate with the seller to see what he will agree to. You must be clear as to what you want and get the seller's agreement in writing (i.e. in the form of an addendum to the contract).

3. If you are unrepresented and the seller is a "for sale by owner", you still can pursue the options mentioned above, but you will have to negotiate directly with the seller on these matters. Perhaps the title company or a real estate lawyer can help you with the paperwork for this (get the seller to agree in writing for whatever you mutually agree upon). Often title companies have lawyers on staff who can write appropriate documents to cover this type of situation. There might be a fee for this, but it might be worth the cost compared to what you will save for the repairs. In some states all buyers and sellers have their own real estate attorneys. If this is the case in your state, have your attorney help you.

4. If you have decided not to purchase this home, you can probably get your earnest money back, but you will not normally be reimbursed for the appraisal or your inspection. If it is a FSBO situation, you might have problems getting your earnest money from the seller, in which case you might have to take him to court to get this money back. You will have to weigh the costs of whatever course you decide to pursue.

This kind of situation points up the importance of having a buyer agent to represent you in a real estate transaction. Check particularly that your agent is either an ABR (Accredited Buyer Representative) or a CRS (Certified Residential Specialist), which indicate advanced training and experience. Real estate professionals deal with problems like this often, and can help negotiate a solution agreeable to both sides. Laws and practices vary from state to state, but in many states such as Arkansas there is no extra cost to the buyer if the home he is purchasing is listed with a real estate agent. In the latter case, all commissions are already included in the price of the home.

If the home is a "for sale by owner" you can still have a buyer agent in Arkansas and many other states. It may cost you a little extra for the home (to accomodate payment to your real estate agent), but when problems (such as the one described here) arise in a real estate transaction, your agent will go to bat for you and help you through these situations and end up saving you money and aggravation. Normally the buyer agent fee can be included in the purchase price of the home.

Answer 2

Hi I am not an attorney I am a realtor so I will not give you legal advice,I have been to many closings and usually what the attorneys will work out is to put ex amount of dollars in escrow until the problems are worked out so that the closing can proceed.Escrow is a special account that attorneys have to hold funds separate for their Clients. After the conditions are met the attorney releases the agreed upon amount to the sellers. The conditions can be anything that is not to the satisfaction of you the home buyer,For example a tenant vacating the property,or promised work being done.Another way to resolve it is get estimates in writing for the work to be done and bring it to the closing they may just decide to reduce the price to cover the costs. Bring the estimates with you in case there is a question about the costs involved. preparation helps the closing go smoother.Sometimes the sellers get preoccupied with getting ready for the move or moving into the new place so things dont always get done fast.
As far as the listing agent negotiating in your behalf that is not ther job.They work for the seller.You would be the one doing the negotiation through them they would only be the messenger.But the reality is the realtor doesnt have anything to do with the closing or contracts.Your attorney knows how to protect your interests at the closing.The terms have already been negotiated the attorneys make sure the contracts are executed and enforced to everyones satisfaction.All this talk about buyer agency and and the other types of agency are not relevant to your question.
Very simply put.... let your attorney know your concerns about that they know how to deal with it. If you refuse to sign you can not get your apraisal and inspection costs back.Technically you can jeapordize your down payment that you made at contract. The attorney will guide you through the process.It all depends on the way it is worded The contract would most likley have a provision to the rider stating what the remedies would be in the event those provisions of the contract are not met by the date of closing. If you are trying to get out of the contract your attorney can advise you of other ways.

Answer 3

If your contract is contingent on repairs being done to the home make sure you let your lender know that you won't be signing anything until the contract is fulfilled. Or try and have the seller pay concession to cover the cost of you doing it yourself. Get some bids and then call your lender and have him put the pressure on. The money for the appraisal was charged by the lender who in turn ordered the appraisal and unfortunately the lender can't ask the appraiser to give him the money back because you have a bum for a seller. So the home inspection and appraisal cost would be lost in this case. Good luck with your purchase I hope the seller comes around.

Answer 4

The appraiser and the inspector have done their job, and someone must pay them. You probably sign the invoices for them, so if you refuse to sign the contract, you will assume responsibilty for the inspection and appraisal. You will also forfeit the right to sue the seller foir these costs. If you go ahead and sign the contract, the seller must fulfil their obligations, or you can take legal action. A contract is binding. Once they sign and you sign, they are legally responsible for getting the items done in the contract. You may go through hell trying to get them to do it, but that's the risk you'll have to take to ensure no money loss. If they still do not fulfil their obligations, and you decide to sue, you can sue them for the legal costs as well, but make sure you do a free consultation with a lawyer first for advice.

Answer 5

Whatever you do don't sign until you have either come to an aggreement or the seller has made the repairs. Once the contract has been signed the seller has forfeited all legal responsibility and the house is yours. No you probably will not get your appraisel money back that is just a risk you take when buying a house.

Answer 6

They would be in Beach of Contract, since you've already given them some money (down payment). They would be liable for any out of pocket expenses incurred if they did not complet all the agreed terms of the contract. Have a yard company come give you an estimate of the cost of completing the work, and send it to the closing agents, and tell them you want it deducted from the closing price of the home, and payed back to you in cash in order to have the work completed.

Answer 7

Rather than cancelling the whole contract, maybe you could negotiate the price to include your expenses for doing the work.

Answer 8

I dont think you can get your money back. I'm assuming you hired a private company to do the inspection?

Answer 9

Don't sign the final papers until all the work has been completed. Do you have a real estate person? they should be able to advise you