Home Buying in Derby>Question Details

Guiso, Home Buyer in Derby, KS

My daugher is a first time buyer. She made an offer on a house in Derby, KS. An inspections was conducted and it shows serious defects in fundation

Asked by Guiso, Derby, KS Tue Apr 19, 2011

also problems in the roof,mold and humidity in cellar ,that never was repair. Now she dont want to buy the house;
How she get out of the deal?

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7
Your realtor should be helping. Defect's that showed up during inspection should be fixed before purchase can be completed. Especially major deftect's. Also, you should always have your own home inspection done. It can cost a little extra, but it is well worth the expense. Surely your realtor made you aware of hiring a reputable person to inspect the home for you, beside's the inspector working for your loan company. I believe we need a blog to have people state the problem's they run into. It is alway's "buyer beware". A home buyer should always do their homework. However your realtor should be watching out for you. They do hold some responsibility...buyer beware!
0 votes Thank Flag Link Mon Apr 2, 2012
I don't normally like to buy properties with foundation problems. However some can be fixed. I have seen some cost estimates approaching $10,000 plus on foundation issues. Kansas Basement and Foundation is a well recommended company to get you an estimate for repairs to possibly negotiate with the seller.
0 votes Thank Flag Link Wed Apr 20, 2011
Read your purchase contract and that should tell you your options. Also, you Buyer's Agent should know what to do as well. If your Buyer's Agent is worthwhile, they will try to renegotiate your daughters contract and either get a lower price or have the Seller pay for the repairs.

I'm guessing there is an 'option period' in which you can terminate the contract for mimimal to no cost. make sure you send this to the Title Company and request your Earnest Money back as well.

If you have a financing contingency, maybe you can get out if your Lender does not approve your daughter's mortgage due to structural items that have been found.

If none of these work or your very late in the game, you would have a business decision to make and you can not sign the purchase papers and forfeit your earnest money to the Seller and simply not close. Hopefully, you don't get to this point. At some point, it would be better to lose $1,000 of earnest money instead of spending $10,000 in repairs.
0 votes Thank Flag Link Tue Apr 19, 2011
Guiso,

This sounds like a money pit.......but the terms of your daughter's agreement will dictate the nature and extent of her options. She should review her documents carefully and consult with an attorney on any issues that are not clear to her.

Unless this is an "AS IS" agreement there should be repair limits and terms that clarify the process. In the event it is an "AS IS" agreement, may still be a limit that would allow her to back out of the contract.

The solution to this dilemma is likely within your documents....be sure they are understood.

Good luck,

Bill
0 votes Thank Flag Link Tue Apr 19, 2011
Please send me more info on that property. It sounds interesting, and I might be interested in it.
0 votes Thank Flag Link Tue Apr 19, 2011
Go back to the original contract agreement. Standard Kansas contracts will usually have a time frame in which to do inspections (usually 10 days). If you are within your time frame, your buyers agent can assist you with the forms to cancel the contract based on unacceptable conditions. If everything has been completed in a timely matter, she will probably be able to get her Earnest Deposit back.

One note, if she agreed to buy it as-is with no inspection period, you may have some trouble getting a loan which might also cancel the contract.
0 votes Thank Flag Link Tue Apr 19, 2011
Your buyers agent is professional to assist you ALL is governed by the executed sales agreement

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Apr 19, 2011
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