Expert: Toni Yates - 9/30/2008

Question
Hi Toni,

My wife and I are supposed to close on a house that we are purchasing tomorrow. The owner agreed to repair certain things. One of which, the a/c leak in the garage. During the final walk through this evening, there is still a problem with the a/c. The owner was hot and said he wasn't going to put any more money in it and we can do what we want. He asked to speak to our realtor in private. in a private conversation, he told our realtor that he will sue him and us if we dont close tomorrow.

My wife and I feel he lost all accredibility when he showed his true colors, mixed with a few lies during this whole process.

what will happen now and can my wife and I cancel the contract since the home owner did not meet his end in time?

thanks
joel


Answer
Hi Joel-
Yikes! OK, here's the deal. DID THE OWNER AGREE TO FIX THE A/C IN WRITING? If so, he doesn't have a leg to stand on for all his bluff and bluster. There are a couple of ways to handle this- 1. Escrow the money for the repairs from the seller's proceeds (the attorney or title company can help you set that up) or 2. Refuse to settle until the repairs are done. Your agent should have had you complete some sort of paperwork (whatever the correct form is for your jurisdiction)that says that the agreed repairs were not completed (a walk-through checklist/addendum?). You can ask that the seller release you from the contract (I would ask for all my expenses) or you will settle when the repairs are completed and receipts are furnished. It seems to me as though the sellers intimidation tactics may have taken their toll on your agent- where's their broker?!If you just quit without asking for the seller to make good on curing the deficiencies out of frustration, the seller could possibly sue you for breach of contract or specific performance. Please have your agent make sure that ALL your paperwork is in order to protect you. Please don't lose sight of the goal in all this- you must have liked the house before the seller soured it for you, right? Hope this helps and best of luck, Toni