Home Buying in Kansas City>Question Details

Max_patek, Home Buyer in Kansas City, KS

Can I get out of this contract to buy?

Asked by Max_patek, Kansas City, KS Thu Jun 23, 2011

I placed a bid on a house that has been accepted and made the earnest deposit. The house is a foreclosure so no repairs will be made by the seller. Upon getting the house dewinterized to be inspected it was discovered that the pipes have burst. I cannot have the house inspected without the repairs made first; is this a valid reason to cancel the contract?

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Your contract probably says that you have a 10 day inspection period, for your information. The bank may or may not renegotiate, but the 10 day inspection period is just for this type of situation. Read your contract carefully, to determine if you can cancel. And always watch your days for inspections & notices of unacceptable conditions.
0 votes Thank Flag Link Thu Jun 23, 2011
Max,

If you were within your inspection period, which is commonly 10 days here in the Kansas City market, then you should be able to cancel and get your EMD refunded to you. Did you buy the home as an investor or owner occupant? If you were financing the home, were you approved for a Conventional or FHA loan?
0 votes Thank Flag Link Thu Jun 23, 2011
Every state has different laws, so it is best to get the advice of an attorney. Usually home inspection is treated, on the contract, as a contingency, therefore, if the home inspection isn't satisfactory, your money can be refunded. Some contracts stipulate that all systems must be operational. Read your contract. If you want to continue with the purchase, perhaps the seller, or bank, will credit the amount spent "repairing the broken pipe" at closing. It may be a minor expense, in the total picture. Get an estimate from a plumber. Good luck and don't let small snags get in the way....it could be an opportunity. Not all people are willing to go the extra mile, and the price should be reflective of that.
0 votes Thank Flag Link Thu Jun 23, 2011
How badly do you want the house? Talk to your agent and see if the bank will pay to have the pipes fixed. Or, see how much they want to reduce the price on the house, then get it fixed yourself.

By the way, this sounds exactly like my house. We discovered broken pipes when we turned the water on for the inspection. We backed out of the contract, but the bank came back to us saying "what will it take"? We asked them to repair the pipes and knock off another $10K off the purchase price...they did it. We now have the home of our dreams.....actually it was a joke in our house...we call it the "House of Broken Pipe Dreams". Hahaha!

If you couldn't care less about the house, or aren't sure you want to deal with any other problems that may come up, then yes, you can get out of the contract based on inspection issues.

Good luck!
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Thu Jun 23, 2011
If your are within your inspection period you should be able to cancel contract, but have your attorney read your contract to make sure you can get out without losing your deposit.
0 votes Thank Flag Link Thu Jun 23, 2011
Consult with your agent and or attorney, much will depend on your contract....
0 votes Thank Flag Link Thu Jun 23, 2011
Your Buyer Agent should be able to help you.

Good Luck!
0 votes Thank Flag Link Thu Jun 23, 2011
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