Dixie,

Agents refer to the term "caveat emptor" in your situation which means buyer beware. Unfortunately, many don't know that leaning on that term doesn't get them "off the hook." I won't advise you legally here as I'm not qualified but I'll just note that the selling agent can't withhold information about the property when asked about specifics. Brokers are required to keep a record of 3 years of transactions on file. This is where it gets into grey area as the selling agent would not have to disclose what they don't know and they may not have known. You're agent should have advised you to obtain the seller's disclosure as well as the termite letter. Whether or not you have legal grounds to stand on would best be answered by an attorney. The real estate laws are immense and complicated but that doesn't excuse the basic and most common elements of the transaction the agent neglected to advise you on. I wish you luck and again, seek legal advice before engaging in a "he said, she said" undocumented attempt at a resolution to this.

Thu Feb 21 2008, 10:46

We bought at the house in November 2007 at which point the burden of termite inspection was already on the buyer. The previous owner gave us a completely clean discloseure, i.e. no knowledge of anything. We did our own investigation and managed to get a copy of the Termite letter that previous owner got when he bought the house in 2001. It specifically said that there had been previous termite damage all over the house ( 7 different places).

My husband called our agent a few minutes ago and asked for help to go after the previous owner ( e.g. by trying to get the disclosure that the previous owner got when he bought the house in 2001). The agent refused to provide any help saying that we can either sue the owner or pay for the repairs and move on.

If it was just the issue of termite damage we would probably let go and move on. However, after we moved in we discovered several other problems, the most important of which are:
- every time it rains the water gets into the basement. We already have a small amount of mould on one wall because of that
- the beam in the middle of the house has sagged and it cause the floors in the kitchen and dining room to slope toward the center wall. We had 2 structural engineers inspections recently and they both said it's a structural issue and needs to be fixed
- the brick veneer is basically hanging in the air and is not supported by anything ( other than being somehow attached to the house. We need to put cement support under it
- There are cracks all over the house around doors and windows. The structural engineer said that it's normal. Which doesn't change the fact that I'm not happy about that.

Unfortunately, the relocation company was involved in the transaction which will make our task of going after the previous owner much harder. Basically, we go the disclosure from the previous owner, we negotiated the price and home repairs with him but once we agreed on repairs etc. he somehow transfered the ownership to the relocation company and the relocation company sold it to us. However, the relocation company had his disclosure as part of the contract. Also the warranty deed shows his name transferring the ownership directly to us.

Right now we're at the stage of collecting all the information as to what the previous owner knew and didn't know about. Once we have that we will consult a lawyer. I'm just afraid that there is no enough financial incentive in a lawsuit like that for a lawyer to take it on.

I really appreciate everybody's help and advice in this issue.

Thank you so much.

Thu Feb 21 2008, 10:00

I didn't know it was a recent purchase. From your statement regarding the years of damage I assumed you had been living there a while. That's the trick with answering questions here. The details can really set you up for giving incorrect advice.

As of the end of 2007, agents are taught to use forms that ASK for a termite letter and the buyer is responsible for reviewing whether that document was checked yes or no and if the document is actually attached. You would find that in section 7 of the sales agreement. To clarify, it's not REQUIRED by law but it is in the contract to whether it was acquired or not. Nevertheless, the mortgage company should have required it in order to close. Your agent should have noted that it was not included if for no other reason than doing her job thoroughly and advising you knowledgeably.

Thu Feb 21 2008, 09:36

From the author of the question:
John,
I disagree with your statement about the termite letter. This is the latest information about termite letters in the state of Georgia:
"As of January 1, 2007, the Georgia Association of REALTORS "Purchase and Sale Agreement" does not require the seller to provide a "clear termite letter" to the buyer in homes that are not brand new. The burden is on the buyer to order the inspection within the inspection contingency deadline, and present the seller with any requests for treatment or repairs. "

My realtor should have known about it and should have told us about it. The lender did not require a termite letter so we never got one. The seller knew about all the termite problems so he got a "clear" termite letter from a different termite company, NOT the one that had the house under retreat contract and knew about the problems.

Anyway, back to my original question: I still haven't found a place that would list exactly what the realtor's responsibilities are towards the buyer. When the real estate agent gets a license, do they sign some document spelling out what their duties will be? If I don't know what the agent's duties are, how can I complain about him? After all, I don't know whether what he did ( or didn't do) was a violation or not. Things I would like to complain about:
- failure of the agent to inform us about our rights regarding choosing the title/closing company
- failure to advise us to get a termite letter
- the agent didn't recommend any home inspection/repair companies
- the agent didn't provide us with any comps when negotiating the price. He just basically stated that he doesn't think the seller will go below a certain amount. We didn't get any comps or any any other from him in writing.

The list could go on. I've already contacted GREC regarding agent's responsibilities and I'm waiting for their response.

Thu Feb 21 2008, 09:09

Dixie - The main question now would be when did you purchase the home? If it was in 2007 and a 2007 Georgia Association Of REALTORS contract was executed for the purchase, the termite inspection would totally be your responsibility as called for in section 9 C of the contract. With the 2007 revision of the contract the termite inspection, along with all other inspections, is the buyers shoulders. Contrary to what John posted below, it is your responsibility based on the 2007 contract.

If you purchased the home prior to 2007 then a totally different set of circumstances controls. Prior to 2007 it was the sellers responsibility to provide a clear termite letter unless all parties agreed that it was not necessary.

Now that we have covered what the contract calls for, let's examine one other document that may give you some relief. If the home had a termite infestation problem prior to your purchase it should have been disclosed on the Seller's Property Disclosure Statement. If it existed and was not disclosed you may have legal recourse against the seller.

If you want to contact me to discuss the exact circumstances of the transaction I will be glad to talk with you about it.

Thu Feb 21 2008, 09:04

The termite letter should have been required for closing by the mortgage company. The mortgage company would have required it since they want to protect themselves from lending on a termite infested home.

It's not the buyer's responsibility to get a termite letter and who pays for that termite letter is negotiable but generally it's the seller. The seller generally provides it in order to ensure the home is as in good of shape it it appears. To your point though, the sales contract that the agent/broker used should have required a termite letter as a standard document required. Have look at your contract and see if it was.

In Georgia, like many states, termites are a problem. Sales contracts usually require that a termite letter indicate that the property is free and clear of termites or that a termite bond is provided at the closing. In fact, the lender may require a termite letter as a condition of the loan regardless of the terms of the contract. The failure to obtain the termite letter or a termite letter indicating termite damage, will likely halt or significantly delay the closing. The termite letter should be obtained early so that any infestations can be corrected prior to closing.

Good luck.

Thu Feb 21 2008, 08:23

I'm actually the person who posted the question. Our real estate agent runs a one person agency so he WAS both the agent AND the broker himself. Here is an update: the agent didn't tell us that it is the buyer's reponsibility to get a termite letter nor did he ever advise us to get one. Now we discovered that our house had live termite infestations for 3 years in a row with 7 different parts of the house experiencing some damage from it. Can I hold the agent accountable for that damage based on the fact that he failed to advise us to get a termite letter?

Thu Feb 21 2008, 07:39

This is an easy one. Consider that fact that the basic real estate salesperson license course is 80% content on law and contracts. Unfortunately, it covers nothing about customer service and real estate marketing for that matter.

Any dissatisfaction you might have with your agent should be brought to the broker's attention in a formal letter as to document your complaint. Don't take the easy route with simply calling the broker. You'll want to be very clear in writing what your grievance is. The broker should contact you to resolve the issue promptly as they are legally liable for the actions of their agents.

If that doesn't produce the results you are requiring the next step is to file a formal complaint with the Georgia Real Estate Commission. In fact, the broker is responsible for reporting any violations made by their agents as well as to protect themselves legally.

You'll want to find Statute 43-40 14 through 16 in Georgia License Law which covers investigations in disciplinary actions. The easy approach may to be just call them and ask for the proper way to file a complaint.

Thankfully, I don't have much experience with upset clients. Let me know if I can assist further.

Thu Feb 21 2008, 07:08

Realtors are held to many rules. The realtor who helped you holds her license under a Broker, who is also responsible to the realtor following real estate ethics. I am sorry for your displeasure in your realtor, the realtors job should be to find you a home to fit your wants, negotiate the best market price for you, and then negotiate the buyer through the inspections right up to the closing, and often beyond that with perhaps local plumers etc to put you in contact with.
The contracts to purchase have been changing often in my state, and I am sure others, the termite letter was once the sellers responsibility and now is often the buyers, and your agent should have pointed that out to you. Your state contract states who is responsible as well.
Just as in many professions, there are those who are more customer service orientated then others, It is often what makes one agent stand out over another, NOT just how much they sell, but HOW they take care of there clients.

Thu Jan 24 2008, 07:37

The Georgia Real Estate Commission. Also their is a difference between a real estate agent & real estate agent that holds the REALTOR title. While all REALTORS are state-issued licensees as agents or brokers, the major difference between a “real’ estate licensee” and a REALTOR is that REALTORS have taken an oath to subscribe to stringent, enforceable Code of Ethics with Standards of Practice that promote the fair, ethical and honest treatment of all parties in a transaction. Non-member licensee has taken no such oath and are not morally bound to ethical practices and principles set for in the REALTOR code. If the agent is a REALTOR he or she is held to a higher standard. You might want to check the different REALTOR county boards. (Example Cobb County Board of REALTORS, Atlanta Board of REALTORS etc.)

Thu Jan 17 2008, 15:03

The link below is to the Georgia Real Estate Commission License Law section of their site.

Thu Jan 17 2008, 14:39