Closing, and we haven't heard back about repairs.

Asked by Randy, silverspring Mon Sep 29, 2008

During the inspection we found several plumbing and electrical issues that we asked the seller to fix. We haven't heard any thing back from the sellers regarding the matters and there Realtor won't return our Realtors calls. Our closing is tommorow, should we be worried????

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real estate…, , Montgomery County, MD
Mon Sep 29, 2008
You should have a final walk through to make sure everything is complete. If no one will fix it before tomorrow, ask the seller to put $ in escrow with the Title company to cover these expenses.
1 vote
Bill Eckler, Agent, Venice, FL
Mon Sep 29, 2008

Sounds like something is going on......

As previously mentioned, have your agent email and leave a telephone message to the effect that the repairs are an issue. Also make the listing agent aware of your "walk through" time prior to closing. Of course you will check on the repairs at this time.

It may be helpful to have a figure in mind that the needed repairs would cost. What sometimes happens is the seller will allow you a credit for the repair costs at closing. We are not saying this WILL happen but it is something to be aware of.

The important thing at this point is that the seller knows you expect the repairs to be done prior to closing as per your agreement.

Good luck
The "Eckelr Team"
0 votes
Fernando Her…, Agent, Gaithersburg, MD
Mon Sep 29, 2008
Yes, unfortunately this is a commom thing to happen before closings. You should have your Realtor meet you at the property before closing and make a list of all items (PLUS TAKE PICTURES!) that they were supposed to fix and bring it to the closing table.
Then, ,
all the parties should sit and negotiate a solution. The attorney conducting the settlment could be you allied on this. . .if it is clearly specified in the contract.

Good Luck!
0 votes
Bruce Lemieux, Agent, Gaithersburg, MD
Mon Sep 29, 2008

Per the previous posters, plumbing and electrical must be in normal working order as of possession (assuming you used one of the standard GCAAR purchase contracts). So, if you provide notice of plumbing and electrical issues, the seller is required to make the repairs, even if he hasn't responded.

It's never a good sign when the listing agent doesn't respond one day before settlement. You should make preparations assuming that they haven't made these repairs. If they haven't, then you should have the settlement attorney withhold an escrow so that you can make these repairs after settlement. Here's the way an escrow like this works: You agree to set aside money - assume $500 - from the seller's proceeds that the settlement company holds. Once you make the repairs, you provide receipts to the attorney and are reimbursed. So, if the repairs are $350, the settlement company sends you a check for $350 and the seller will get a check for the balance of $150. But what if the repairs are more than $500? This is the scenario that you want to avoid.

The biggest challenge with an issue like this is to come up with the escrow amount at settlement. Before settlement, you should get quotes to do the work. Even if it's verbal and estimated high, you are in a much better position at settlement to get a higher escrow amount. You'll be in a position of strength if you say that "Ace electrical estimated the electrical repairs could be $700, and Bob's plumbing estimated $500 for the plumbing repairs, so we need to set aside $1,200".

Good luck. Hopefully they've made the repairs and you'll have a smooth closing. Be prepared just in case!
0 votes
Melody Schae…, , Savannah, MO
Mon Sep 29, 2008
There is a form that needs to be signed at closing that states you have done your final walk through and you are taking the house in the condition that it is in. So, it might be advisable, to remind the other realtor that if these repairs don't get done, you will not be closing. That might force a call back at least.
0 votes
Jeff Escher, Agent, Rockville, MD
Mon Sep 29, 2008
If you used the standard "Addendum of Clauses" form for your home inspection contingency, failure of either party to respond indicates acceptance of the last notice. So, if they didn't respond to your request to fix the items, they are legally obligated to fix them.

Furthermore, all plumbing and electrical must be in "normal working condition" per the main contract. The paragraph number varies depending on which version of the contract you used. So that also covers you.

If these items are not completed by the seller, the settlement company can hold a portion of the sellers proceeds for the repair. Or, they can negotiate a credit to you, with lender approal.
0 votes
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