Expert: Dick Dennis - 8/1/2008

Question
QUESTION: I am under contract for a property in Florida.  I have inpsected the property and have determined that there is several thousands of dollars of repair needed.  May I submit a counter offer at this time or do I have to cancel my existing contract get the deposit returned and then submit another contract?  My realtor has advised me I can not submit a counter at this time.  Please advise and thank you.

ANSWER: By submitting a counter offer at this time, Pam, you have, in effect, cancelled your present transaction based on the inspection clause. That's why your Realtor said that. If you still want that property, you have your inspector estimate the cost of the work to be completed and either kill the transaction and have your deposit returned or continue on with it with the provision that ex-amount of work (detailed) is completed before closing. I am sure your Realtor must have told you that already. I do wish you well.

Dick Dennis

---------- FOLLOW-UP ----------

QUESTION: thank you for replying so quickly.  However, may I not submit an addendum to my existing contract and request a reduction in price?  I have heard that happen.

In my opinion I have paid an architect to inspect the unpermitted structures and if I am required to reveal all of what was written in the report....then the realtor could use this information that I paid for if the deal falls through for the next potential buyer.  That does not seem fair to me ....the buyer who paid for the architect.

Answer
If the seller recompenses you for the cost of the architect's report, then you can make his report part of your purchase. If you read the clause that stipulates you have the right to have the property inspected, it does say that if the seller does not satisfy the work necessary of that report, then you may cancel the transaction and get your deposit returned. If the transaction is cancelled, then you can have your Realtor write up another offer (with your new price) stipulating that all the work must be completed prior to closing. Otherwise, hire yourself a REAL ESTATE attorney to make sure you interests are protected.

Dick Dennis