Unless agreed to otherwise in the contract, you (the buyer) are responsible for the inspections. Your Realtor ordered these inspections for you, not the seller. Based on what you said about making the choice of which Home Inspector to use, you gave the Realtor authority to order the inspection. If the inspection was $620 (which sounds like double what an inspection typically costs) and your Realtor has an invoice for it (which you should demand a copy of), then you are responsible. Your earnest money should not be witheld to pay for the inspection, because the seller should not have ever been or tied to the inspection charge. This is not the Realtor's money to use either. It is not up to the Realtor to withhold the earnest money. This dispute is between you and the seller. Get your Realtor's Broker In Charge involved if you need to.
Please keep in mind, I am not a Real Estate Attorney. What I have written is my opinion, but I would encourage you to get an attorney's opinion if this becomes a bigger issue. I hope this has helped answer some of your questions. It is unfortunate that this transaction did not work out for you, especially since you are so investeed in it. I hope that you will be able to close on your new home soon. If you have any other questions, or need some clarity, please don't hesitate to ask.
Penny wise and pound foolish, famous last words. Better that Web knows now to use an attorney for his closings. At $65K, this was a practice run.
Scott Miller, Realty Associates, Boca Raton, FL
1: Was your realtor on the first transaction working for both you and the seller? A dual agent?
2: Did the seller order the home inspection and choose which inspector to use?
3: Is your realtor with the first home the same as the realtor with the second home?
4: Have you received your earnest money deposit back yet?
5: Have you signed a Termination Agreement with return of Earnest Money?
6. Was the seller willing to drop the sales price to $65,000 to make the deal close?
Not meaning to interrogate you, but these are a few necessary questions that need to be answered in order to give you the right advice. Thanks!
GET AN ATTORNEY to represent you on your next transaction.
Scott Miller, Realty Associates, Boca Raton, FL
Unless the contract said you have to reimburse the seller for a house inspection, you do not owe anything. If the seller paid for the house inspection, that can be reused fro another buyer.
With that being said, however, usually the party ordering the inspections is who the vendor looks to for payment. I might add it's unusual that the seller would order the inspections on your behalf. In typical transactions, the buyer selects what inspections they want and who they want to do the inspecting. They, or their agent, then orders the inspections...not the seller. I'm a little confused with your scenario where the seller has paid for inspections in advance of closing unless he did order the inspections.
On another note...if he selected the inspectors that could be a conflict of interest where you're concerned.
Best of luck at any rate.
It really all depends on how the contract was spelled out. The subcontractors who performed the home inspection, or other services will have to be paid regardles. They've done their job, and it's typically the buyers responsibility for those fees, and sometimes they are covered with seller paid closing costs at the table. Normally, these contractors have a form that is signed the day that they perform this work. Who signed these consent forms?
Have an attorney look at your contract. It may be that because your agent representing you signed these forms that it has to be worked out between you and your agent. The seller was offering closing costs IF the deal closed. He wasn't offering to specifically pay for home inspection, etc. But if he's already paid for them, and you never signed an agreement to have the home inspection done, or signed an agreement with him stating that you would pay for them, in my knowledge, unless it's in writing, there's no way that they can come after you.
In this day and age, we as agents see deals unfortunately that just do not make it to the closing table, for one reason or another. The potential buyers in those cases that have had work done, such as inspections, are responsible normally for those costs. It's usually scheduled by yourself or your agent, and most of our inspectors here will coordinate that with the home buyer as well as the agent.
Did you have a role in these services being performed i.e. Did you know they were taking place, were you there, etc? And have they already been paid for, or were they waiting for them to come out at closing table? If they were already paid for ahead of time, I don't think there's any way that they can come after you, unless it's specifically stated differently in the contract. If they were waiting on these services to be paid for at the closing table, then it will probably fall on you to pay these professionals for their work.