I know someone who needs to sell their home. They have a potential buyer and the home has not gone to settlement. The buyer has been coming by making renovations and the home hasn't been sold yet. I say they aren't allowed to do that until settlement because things can still go wrong or either side could back out. I say until settlement he needs to leave things alone. Am I right?
2006-07-01 09:13:28 · 4 answers · asked by donise225 3 in Business & Finance ➔ Renting & Real Estate
If the seller is allowing the work and the prospective buyer is willing to undertake the risk, then there is no real legal bar to doing this. The buyer and seller shold have an agreement spelling out the terms, however, in order to avoid legal problems later.
If the deal should fall through, the prospective buyer would be out the funds that they invested, likely without any legal recourse.
If the work was not done to standard, the seller could be stuck with having to spend a pile of money putting things right before they could sell to someone else.
IMHO, this isn't a wise idea for any of the parties concerned but it's entirely up to them to decide how mutually stupid they want to be...
2006-07-01 09:27:02 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Why do people who do not have a clue, like mbrcatz17, answer questions they have no training in???
NO! A Buyer can not make any renovations with out the sellers agreeing to them.
This would not be a wise thing to do or to allow as -
1) The sale could fall through and the buyers will be out of the renovation money
2) The sale could fall through, and the sellers could have all sorts of problems, like -
a) A lien place on the home for work not paid for by the former
buyers, YES, the owner of the home would be responcable
should the buyers not pay the bill in full.
b) Work not compleated that the seller would now have to pay
to have compleated.
c) A bad renovation job, that would now lower the value of the
home
d) A whole lot of other things can go wrong
This is one reason why people should use a Realtor. A Realtor will protect your best interest and advise you of potential problems.
Need a good Realtor?
If In Alabama - e-mail me
If not in Alabama - I can still recommend an experienced Realtor from your area that will give you OUTSTANDING service! I work with a network of Realtors across North Amercia.
http://www.pauld-kw.com
http://www.bhammls.com/dziedzic
2006-07-01 18:25:51 · answer #2 · answered by Paul D 2 · 0⤊ 0⤋
The buyer is allowed to make renovations prior to the settlement - but it's a bad idea for the buyer, because if the sale doesn't go through, then he's out all the money he's put into the house.
And if he botches it up really badly, and the sale doesn't go through, the seller has to fix it up himself. It's not covered under insurance.
2006-07-01 16:17:05 · answer #3 · answered by Anonymous 7 · 0⤊ 0⤋
Without a deed in hand, then all things done on the property need to be approved by the owner. And as other people (especially Paul D) have stated, it's not recommended.
By the way, you should feel privileged, this is the first time I have seen Paul D actually respond to a question. ;)
Regards
2006-07-02 02:36:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋