Buyer requested additional escrow for roof repair after contingencies have been released, otherwise he won't buy. Closing in 2 days.

Asked by Bk81, 80124 Thu Jul 12, 2012

Buyer made this additional request after we made all the repairs he agreed to in the counter inspection contract, licensed roof repair with 5 yr cert. He sent out another roofing company and said that company won't certify our roof. So he wants us to put in 1.5 times roof replacement money ($20K) in an escrow for use after close to fix the roof. He now wants a licensed, accredited roofing company to do it. All these came after all contingencies were released and we are all packed up and ready to move. Our agent is not advicing us any more and want us to talk to an attorney. Is it best to still close and let the buyer in default by not showing up at closing? We are not sure if we want to go through the trouble and cost to get the $6500 ernest money.

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8
lewisremingt…, Home Owner, Rochester, NY
Mon Apr 27, 2015
I would see if you can get a few quotes from roof repair companies and see if there is anything less expensive. You really might want to get a lawyer on your side as well, like your agent suggested. That might help you the most, since they'll be able to better negotiate.
http://www.palmerroofing.net
0 votes
Jan Baer, Agent, Littleton, CO
Fri Sep 27, 2013
Dear Bk81
please let us know how this transaction was resolved and what did you end up doing about this 11th hour buyer roof request. Cheers, Jan
0 votes
Shelley Brya…, Agent, Englewood, CO
Fri Oct 5, 2012
did your roofer than provide the 5 year roof certification?
0 votes
regionalzebra, Home Buyer, 80129
Mon Sep 17, 2012
This is why good brokers make good money. They handle these issues, usually successfully.
0 votes
Suz A, Agent, Longmont, CO
Tue Aug 7, 2012
Hello Bk81,
Please let us know how things turned out. Seeing that your closing date has passed, I would be curious as to whether you contacted a lawyer and how your case was resolved. Please follow up.
0 votes
Shelley Brya…, Agent, Englewood, CO
Thu Jul 12, 2012
if you signed the inspection resolution and agreed to repair with a roof cert you might need to get the other roofer to do the work to certify it- it is not uncommon to escrow more than the estimate and then when work is done after closing, you would get any remainder back- you could also speak with an attorney
0 votes
Thanks Shelley! We already did the repair with a licensed roofer, now the buyer wants an accredited, licensed and insured roofer to re-certify, after the resolution deadline. Any good attorney contact?
Flag Thu Jul 12, 2012
Skeeter Wils…, , Westminster, CO
Thu Jul 12, 2012
From what you are saying you had a licensed roofer do the repairs and you have a 5 year certification so am not understanding why he wants more?
0 votes
In the contract we signed was the roof repair would be done by a licensed roofer, which we did. Now the buyer wants his list of roofer to recertify the roof because he wouldn't trust the roofer we used.
Flag Thu Jul 12, 2012
Exactly our thought. Here is the buyer's agent email - the seller consulted his real estate attorney yesterday afternoon. It is the buyers request, which has been a reasonable request from the start, to have the roof properly repaired and certified for 5 years. After getting it re-inspected by an accredited roofing contractor, it is apparent that the repairs were not done properly as agreed. The buyer simply wants it done correctly and is prepared to litigate for all costs he's acquired if not done as agreed. The attorney suggested that the work be done prior to closing by an accredited, licensed and insured contractor if at all possible…or alternatively that an amount equal to 1 1/2 times the estimated replacement of the roof shall be held in escrow until this matter is resolved. We have a replacement bid for $12,500.
Flag Thu Jul 12, 2012
Ron Thomas, Agent, Fresno, CA
Thu Jul 12, 2012
Check your Contract to see if you both cecked/signed the ARBITRATION/MEDIATION clause:

You have two choices at this point:
Give in, do the work and keep the sale, or,
Let him walk and keep the Deposit if you can.

It is as simple as that:
How badly do you want to keep this deal?

Good luck and may God bless
0 votes
Ron! Thanks for the post. We are not worried about selling our house. But we already signed a leasing contract with the apartment, so we are out 4K no matter what happens. I rather relist our house to a higher price. Our area the market is doing very well.
Flag Thu Jul 12, 2012
Under the contract, we are required to go into mediation for 30 days. But would we still tied to that clause even if we don't want the ernest money? We just want this buyer off our back.
Flag Thu Jul 12, 2012
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