I don't know if having a buyer broker would have made a difference. Your home inspections may or may not have come up with the defect in the home. If the listing agent had previous knowledge of the defect, it should have been disclosed, otherwise consult with an attorney and see where it goes. Many listing agents dealing with bank owned properties have a team of workers to address issues as they arise. Getting an outstanding value on a bank owned property comes with some risk as the seller discloses nothing.
Thanks for responding. Definitely should have hired a buyer's broker.
I think the problem is more about the agent's actions. He is not representing me. He did not give me the dual agency disclosure form until I was making the offer. I'm reading now that I think he should have given it to me when he showed me the property. I think the mis-step occured when he pre-filled the inspections section without even talking to me about it, and then when I inquired further about the SEWER inspection in particular, he adivsed me NOT to check the box. I should have known something was up when he said don't check the box because it was "public". Of course it was public, it is in a city - however, it still could have a sewer pipe issue. And in this case, it does! The previous owner was quite nice about it and almost seemed hesitant to tell me about it at first. There is also some evidence at the property that backs up the previous owner's story (didn't all fit until looked at the whole puzzle). The previous owner went so far as to say that they had people out twice to look at it and the entire sewer pipe needs to be replaced due to age and angle.
Another bit of info - I've pulled the property disclosure which is essentially 99% "unknown"... however, the sewer question is not answered at all. Known Malfunctions? YES or NO is not answered.
I have 1 day left in inspection period. Of couse the SEWER inspection was not part of the contract but I can still ask for "seller to repair or replace sewer line as per required and deemed fit by a professional or specialist prior to closing". I do want to purchase the home but this issue would have to be resolved completely before I move into the property. The bank will likely not go for this since they want to get rid of it ASAP.
Either this broker is not very smart or was out to deceive. Either way this could cost me $8-$10K or more. I'd feel bad to cause "trouble" if he was just simply ignorant about this issue, or I'd feel very cheated if he knew all along.
The property was under contract before but it fell through after inspections. The broker said they did not know why. Is that really possible? If I inform the bank of this problem in writing, and still do not buy the house, is the bank (seller) required to disclose this to a future potential buyer.