We are buying a home and asked for some repairs to be made before closing What if they are not completed?

Question

The estimated cost of repairs was $5,400..we agreed to Pay 50% of the repairs with our part not to exceed 2,900 if actual cost was more the seller would be responsible for the rest. We have a contract stating that it also says repairs would complete by the 25th when we close. We are also suppose to be able to take possession of the home that day. Today we talked to the contractor who they told us would be doing repairs, he said he had not started the job yet (they hadn't actually not hired him yet) and that even if he was hired today there was no way the repairs would be complete by the 25th. We now know that the repairs will not be done by closing day, so if They hire the contractor and we allow the repairs to be completed after closing and the seller Doesn't pay the contractor their part can the Contractor put a lein on our home making us pay all of the repairs Even though the original homeowner hired them and signed a contract with us to pay for 50% repairs. Should we not Close?

Answer 1

You can hold off closing until the walk through indicates the work is done.. And the costs can be held from their proceeds and paid directly to the contractor.

Answer 2

You need to engage in a mutual escrow account for more than an adequate amount of money to cover these repairs. Since I live in Wisconsin, many times repairs cannot be completed prior to closing simply due to cold weather. In such situations, the title firm escrows about 150% of what the seller is expected to pay for the repairs (gives you decent leeway for cost overages). These funds are held from the seller at closing, and when the work is satisfactorily concluded, both parties sign an agreement to disburse the funds needed to the contractor. Any excess, of course, goes to the sellers from whom the funds were originally withheld.

Answer 3

make the seller put the maximum amount you and the contractor think the repairs would cost, (I would double it), in escrow with your attorney then add into your contract a penalty for each day the job is not completed pass the closing date. A hundred dollars a day would be a good incentive for them to get the work done pronto. make sure each and every detail is in writing and both parties agree, make your lawyer responsible for any screw ups.

Answer 4

No, do not close until the work is completed just as the contract stipulates. Once you close on the house...it is yours to deal with! I would also wonder why the work had not been contracted to start? Legally the contract is void at this point...get your downpayment (earnest $ back) and find another house.

Answer 5

Looks like contractor or owner has a credibility problem.

Wonder what else is lurking beneath the surface......Me? I'd walk.

Answer 6

Real Estate: Why scents may not make cents

Why scents may not make cents when trying to sell your home.

For many home sellers and real estate agents who believe the TV commercials that claim chemical sprays “sanitize” the air, plug-ins “freshen” the air and Fragrance emitting devices actually clean the air, well…this may not be music to your ears.

The savvy, health conscious home buyer has added chemical fragrances to their list of what they don’t want to smell when they are looking to buy a home. These chemical fragrances are now listed right next to mold, cigarette smoke odor and animal urine by many home buyers.

Home buyers today are more educated than ever. Even inexperienced first time home buyers understand that chemical fragrances do not clean the air, they contaminate it with toxic chemicals and more often than not these chemical fragrances make people very sick.

Home buyers have kids with asthma and allergies. They, themselves, might suffer from migraines, respiratory illness, cancer or fragrance sensitivity. Home buyers know that clean should not have a smell, not of disinfectant or chemical emitted fragrances .

So, while the location, square footage and price of your home might be perfect for your would be buyer, the smell of your home just might be the deciding factor on why an offer was not written up.

What does your house smell like?

Once plug in style fragrance emitting devices are used in a home, the oil / fragrance permeates the wallboard as well as flooring. Similar goes for the fragranced dryer sheets in the laundry room. These chemical odors then circulate in the air vent heating and cooling system and will never come out, no matter what you do.

With the growing population of people suffering with fragrance sensitivity, Asthma, respiratory conditions, various cancers and allergies, house hunting can often prove to be quite a challenge.

If you are seriously in the market to sell your home, increase your odds of getting top dollar and more offers by discontinuing the use of fragranced products. Open your windows and let the fresh air in. Clean with non-fragranced products. Your house will then be marketable to all potential buyers... even those with health issues.

After all, you do want your home to take a buyers breath away... but not literally.

Answer 7

THEN THE DEAL IS OFF BECAUSE THEY HAVEN'T DONE WHAT THEY AGREED TO DO. OR YOU COULD RENEGOTIATE.