Home Buying in 56156>Question Details

Bumblebee, Home Buyer in 56156

Can I terminate the agent agreement? We've decided to have a contractor build a new house instead.

Asked by Bumblebee, 56156 Sat Mar 20, 2010

a couple of weeks ago, we made an offer in an house and the seller accepted it. Anyway, then later I found out there are 4 registered sex offenders lives around that area, needless to say, with 2 young kids, I feel strongly to back off the deal despite of loosing 1000 dollars in the earnest money and home inspection. Now, I want to have a contractor build a house in suburb instead of buying a house in the metro area. What does the law dictate when it comes to this situation? Does my agent still have a dip in the commission from the contractor?

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You should definitely talk to you agent about your situation and maybe an attorney. You may be willing to walk away from your earnest money but sometimes its not that simple.
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0 votes Thank Flag Link Sat Mar 20, 2010
Once you sign a contract it is important to discuss the matter with all parties or seek the advice of an attorney. Will you purchase the homesite from the real estate agent. I don't believe that there is a law releasing you from a sales contract because of finding sex offenders in the area.
0 votes Thank Flag Link Sat Mar 20, 2010
You should talk to your agent , and an attorney. Your agent, and the broker may work with you on this. You may be able to collect your earnest money also.
0 votes Thank Flag Link Sat Mar 20, 2010
Hello Bumblebee. I understand that you are concerned about the registered sex offenders in the neighborhood. However, please do realize that they are everywhere and there is no guarantee that there won't be any in the suburbs by the time you finish construction. The reality is that many sex offenders do not register and/or do not report when they move to a new location which means that the sex offenders that you found may not really live at those registered addresses any more. If they do, I would rather know where they are than thinking that there are none because the registry does not show them.

Many people think that new construction is the way to go. They get exactly what they want and live happily ever after. Most people who have gone through the construction process learn quickly that there are many frustrations and unless you have built a home before, you will not know what to look out for and what questions to ask. Consider that you will pay for every door knob that goes into the house and there will not be any established landscaping. Landscaping is expensive and time consuming if you do it yourself. Will you know what to do if the contractor does not pay his subs and the subs put liens on the property? What if the cotnractor goes bankrupt in the middle of the project and does not finish the house? Carefully check the builder's reputation and financial wealth and speak to recent customers about their experience. Make sure you know exactly what is included in the bid and how change requests and upgrades are handled. For instance, if there is a tile allowance, make sure that you know what type of tile it is and that the cost of installation is included. There are many different types and styles of tile and the cost of installation varies greatly. Know in advance what fixtures and appliances you will get so that there are no unpleasant surprises down the road. Also check into the cost of financing the project. Will the interest rate for the final loan be locked in now or will you have to wait and see what interest rates are when construction is complete? You would not want to be faced with not being able to afford the rollover loan because interest rates have
gone up while you were building the house with the construction loan.

Good luck to you.
0 votes Thank Flag Link Sat Mar 20, 2010
Ute Ferdig -…, Real Estate Pro in New Castle, DE
Review the language in your contract - it should tell you if you owe a commission to the agent or not. Speak to the broker as well. If the contractor did not put the house on the MLS and your agent did not show it to you, it would be hard for them to collect a commission from the contractor. Just because it is a contractor doesn't mean that you don't need representation of your best interests.

Also keep in mind all the efforts and education your agent has given you - if you cut out that commission then the agent just did all of that work in good faith and will receive nothing for it. Did the agent give you any information that helped lead you to the suburbs? Finding a way to provide at least partial compensation to your agent is good karma.
0 votes Thank Flag Link Sat Mar 20, 2010
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