Home Buying in New Jersey>Question Details

Emme, Home Buyer in New Jersey

What do the sellers have to disclose if deal falls through?

Asked by Emme, New Jersey Mon Sep 17, 2007

After inspeciton found out that bathroom wall that moves/soft wall, and missing grout around tiles, means either structural problem or water problem.Sellers dont want to repair or give money.Want to fix gorut and try to sell to some else. Realtor has already proved unscrupulous, will they have to tell the next buyers?

Help the community by answering this question:

Answers

8
Hi Emme,

I cannot tell you how disappointed I was to read your additional comments.

Assuming the sellers did not know about the bathroom wall problem before your inspection, they have not (yet) failed to disclose. (In the future, yes, they are required to disclose.)

From the information you provided, you have the right to cancel the contract and move on if the sellers will not take corrective action or issue a credit in an amount that is mutually agreed. Since you are in NJ, I assume you also have a real estate attorney. In NJ, most real estate transactions are settled by an attorney, who also plays an active role in post negotiation inspections. Practices do vary slightly depending on where in of New Jersey.

The sellers agent, your agent, nor either attorney can force the seller to correct the problem nor issue a credit. Your agent (or the managing broker who has stepped in) and your attorney can enforce your rights to cancel the contract. So, yes, your choice is to either go forward with the contract and bear your risks, or walk away.

Given the extent of inventory that exists in most areas of NJ, I would be inclined to advise you to start looking elsewhere. Assuming you have an attorney, he/she will have probably already told you this, also.

If you cancel the contract, the seller is absolutely required to disclose this. Almost any buyer’s agent will ask the cause of the fall through. The sellers may lose a lot more by trying to go back on the market. In my experience, once a deal falls through, it is difficult to ever regain another contract at the same price. This would be particularly true on fall throughs resulting from inspection issues. The fact that a deal falls through causes future buyers concern about both the property and the seller (why weren’t they able to work it out?) For this reason, it is in the sellers best interest to negotiate a credit and get to closing. If I were the sellers agent, I would be advising them to work this out because their next contract may be a lower price, the next buyers may be cautious as a result, and we are headed into a slower buyer season surrounded by negative news.

For you, as the buyer, if you decide to proceed, I would recommend that you seek a credit over corrective action. Since you seem unsure of the sellers agent and perhaps the seller, how comfortable will you be with work performed/supervised by them? The other question for you to ponder would be what else might there be that you should know about? Beyond the bathroom wall problem, are you confident in the property and representations made? It could be a very well taken care of property that has this one problem. Review any disclosures and your inspection reports again in support of your final decision.

Best of luck to you.

Deborah Madey - Broker
Peninsula Realty Group
New Jersey
1 vote Thank Flag Link Mon Sep 17, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
In resposnse to one of the answeres; the sellers agent actually is the office manager. Our agent got so frustrated with how some of the dealings were going, she no longer wanted to deal with the other side, and turned it over to her office manager, who is now handling the situation. Basically saying we should just either get out, or buy and take a chance on what the damages turn out to be
1 vote Thank Flag Link Mon Sep 17, 2007
The sellers are required to disclose this information. It is common for the next buyers agent to ask why a deal fell through. It is a very few Realtors that would ever withhold this type of information. By all means, yes, the seller and the Realtor have an obligation to disclose this information to all potential buyers in the future.

Although it is not your obligation to do so, you could place a phone call to the managing broker of the agent representing the seller. The broker, as the manger for the office would then take the necessary steps to ensure proper disclsoure was made to potential future buyers.

Are you working with the lisitng agent on this transaction? Or do you have your own buyers' agent?
1 vote Thank Flag Link Mon Sep 17, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
It depends. Disclosure laws vary in the requirements. When in doubt....disclosure is necessary. When you have folks like you describe involved, chances are, disclosure requirements may not be followed. If you are the prior buyer and backed out.....save your energy and move on. The other folks are not worth your effort. If you are the seller....DEAMND that your agent disclose, disclose, disclose.
1 vote Thank Flag Link Mon Sep 17, 2007
Yes; disclosure laws say that they should tell the next buyers. If they are unscrupulous people, they might try to disobey the law, and sneak the problem past the next buyer.
An agent that claims the title "Reator" should never join a seller in willfully misrepresenting the property and deliberately hiding defects. If the agent goes ahead and breaks this rule, he or she could be reported to their broker and or the local board of Realtors.
1 vote Thank Flag Link Mon Sep 17, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
The seller is responsible for disclosing EVERYTHING they know about the property including all inspections that were done on the property from the previous transaction.

If they want to sell it "as is" great.....they still must have full disclosure.
0 votes Thank Flag Link Mon Sep 17, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Unless you absolutely gotta have this property or are getting it for one heckuva price--who needs this!!?? Here in California you can sell a house "As-Is" which states if you find anything wrong you're options are to take it "As-Is", cancel the deal, and/or try and go back to the Seller for some relief. If the transaction falls through then the Seller is now on the hook to disclose the material fact, as is the agent in California, to the next Buyers. They don't have to and can run the risk of a lawsuit but hey, Sellers do that occasioinally. Usually in this case "further inspection" is reccomended to determine the extent of damages behind the wall. More rot? Mold Issues? You pays your money--you takes your choice! Move on!
0 votes Thank Flag Link Mon Sep 17, 2007
The sellers have to disclose all material facts. A material fact is one that might influence a buyer's decision to buy. If in doubt, disclose. Sellers also have to disclose repairs that were made. In the end it's up to the buyer to decide what they consider a material fact. In your particular case, the seller would have disclose the existence of the inspection report that revealed the bathroom condition.
Web Reference: http://www.go2kw.com
0 votes Thank Flag Link Mon Sep 17, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer