Expert: Karyn Foley - 3/21/2009

Question
Inspection and repairs:  I recently signed a contract with escrow funds for a house unseen in Florida.  I was told I had 10 days (since I learned I had 20) to get it inspected and go forth.  When the inspection showed roof and plumbing plus other cosmetic issues, we no longer wanted to buy the house since it was advertised "in move in condition nothing to repair."  We paid airfare hotel car rental and time off from work to view house 3 days after contract was signed.  We notifed agent we didn't want the house within 6 days and were told we would have to forfeit our escrow because the contract stated "seller warrants that the ceiling, roof...do not have any visible evidence of leaks, water damage....  Well the house had roof leak(s). We were told the leaks were not "visible" by seller and therefore we either settle by accepting lower pricing on house or we would forfeit escrow. We were told we should have signed an "As Is" contract.  What is an "As is" contract vs a traditional contract?

Well we told the agent we would write the Realtor's Association, call her broker and/or file a complaint against their E & O because we were within the 10 days limit.  It took this threat to get our escrow in the process of being returned.  We feel the agents were attempting to manipulate the situation. First we were told the seller's didn't have money to replace roof but we could take the full cost of a roof ($8,000)off listing price.  We didnt' want to bother with this because we thought we were buying a house without defects.  What is the truth here?  On a traditional contract did we have 10/20 days and be released from contract, or were we responsible to turn over our escrow because we not longer wanted house?  The seller came through and released us from contract, not the agents.  We live 1,000 miles away and it was a difficult actually 7 days.  We want another house but want to understand what pages 198-215 really mean.

Answer
Dear Carolyn:  The most important thing is that you were released from the contract.  The next important thing is not to buy anything unseen.  In California there is no thing as the "as is", unless it is stated and signed by all parties that the seller is selling the house in its present, as is condition, with the following disclosure made:  and the list of problems clearly stated by the seller!  I do not know the law in Florida.  You also should have had your own agent represent you.  There is no "standard" of inspection period, this is a negotiation and agreement between buyer and seller.  YOu can file complaints through the local board of realtors where the house is located, or take the matter to small claims court, depending on the amount the court allows.  Or, simply hire a real estate attorney.  I cannot determine what is "truth" as I have no copy of any documentation.  Taking money off the purchase price enabling the buyer to make appropriate repairs is common, or credit issued to the buyer at the close of the transaction.  I also do not have copies of pages 198-215.  If you do not want to hire an attorney to translate, ask another agent in the area.  Or, go to one of the storefront legal services that could assist at a lesser price.  Here in the neighborhood where I live there are such businesses called "We the People"; I am sure they exist near you as well.  Buying a house is not for amateurs, everyone needs support and an advocate.  Thus, your own agent or an attorney.  You don' save any money buying by yourselves.  You are also entitled to have the house inspected.  Didn't you use a professional home inspection service.  I truly hope you didn't just go by yourself and eyeball things.  Inspectors go over the entire property.  Or, you could also hire individual people who specialize, such as roofers, electricians, plumbers, and so forth.  Shake off these problems and go forward.  You should first move and rent in a city or state where you want to buy.  Take your time and interview agents, search out areas, and read as much as you can and visit as many homes as you can.  Go forward armed with good representation and more knowledge than you have know.  Take some classes and learn what all the forms means and how to interpret the documents - or have a real estate professional go over everything with you at the beginning.  Good luck, and consider this a learning experience.  I am sorry it turned out to be so unpleasant and costly, but next time you will do much better. Karyn Foley