Wow that is a good question! I re-read the section you are talking about, and there is an exception at the end of the sentence. I do not know clearly what that would be! Did you disclose to the buyer that the railing is not to code? Our contrcts also state that you have no knowledge of any code violations. I will check this out for my own info as I think you raise an interesting question. It is unclear if there was any violaton. Also remember that this contract is between you and the buyer only. It sounds like the buyers agents brother-in-law sent the city inspector over. Are you sure the buyer had knowledge of this? Breach of contract must be done by one of the parties to the contract not either of the agents.
Sounds like the real issue is the $3,200. Are you prepared to take the house back for $3,200? Maybe there is some compromise you can come to with the buyer. Maybe you have gone as far as you can, I don't know.
What I do know is that if you look at this as an attack on you, no one will benifit. Step back and look at it for what it is and think of a solution.
Good luck to you,
Prudential CA Realty
Discount it, and you will pay slightly smaller costs to close.
Be done with it and move on.
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END Transactions in our Brokerage. IN MY OPINION, there is NO benefit to the Seller or Buyer and only benefits the Agent. Also, NEVER use your RE Agent / Broker as your Lender or vice versa. Also, be careful when using Real Estate Broker-owned Escrow and Title Companies - they can be loads of trouble.
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Since the likelihood of anyone getting a building inspector on-site in less than 3 hours (agent was notified a 12:40pm) there are only 3 possibilities 1) The agent didn't speak to anyone 2) she call the building inspector but a visit did not occur 3) the unlikely case that a on-site actually occurred [will be validated on Wednesday] given a 3 hour windows. I called this morning and have an appointment for a pre-alteration inspection setup for Wednesday. So for 1 and 2, the agent would have outright lied [specifically indicated on-site]. In 2 section 10A and lied, and 3 section 10A comes into play.
This is an very small transaction (120k) to have all of this headache - I am still moving forward on my part of the contract but I have to say so far this seems highly irregular. But it is interesting..
Yes buyers can and are invited to bring inspections to the table (pest/home)
As it pertains to section 10A from the standard CA RE purchase contract: â€œWithout the sellers prior consent, Buyer shall neither make nor cause to be made: .. (ii) inspections by any government building or zoning inspector or government employeeâ€
This was put in to help protect the seller from a agent/buyer from operating in bad faith during and after a sale. Even if the buyer/agent was ignorant and they made the request which inadvertently "caused". It still crosses the line.
The property is up to code (when it was built). The building inspector was either a) called for advice, b) a pre-alteration visit occurred [validating on Wednesday] or c) the agent blatantly lied in hopes of pushing the seller (me) into negotiating another 3k.
The good news is the Buyers agent, which I do not believe is working with full transparency with her client, sent and signed the letter noting the inspection along with the addendum with the negotiation points. I am currently moving forward with the transaction - but I am just as good with canceling it as well. And yes I have a sellers agent, no they cannot provide legal advice. My agents broker has been speaking with the buyers broker questioning the ethical behavior of this transaction. My questions are more on the legal side of things to with respect to the contract and when it's considered breached.
Contact your current agent. If not represented, there will be an array of answers here.