Expert: John Hendricks - 5/18/2009

Question
QUESTION: My husband and I are in the process of looking for a home in Tracy, CA.  We found a realtor through the internet and read their profile and thought that they would be the right fit for us.  After finding what we thought was our dream home, we were informed that the previous tenants had grown pot in the house, as first time home buyers and not knowing the extent of the pot growing and the realtor not telling us the full story we opened escrow.  After getting some not so good feelings about the house, we did some research and found out the entire house was used to grow pot and the police had the home under servellience and seized over 350 pot plants, the prior tenants had a entire operation with generators, grow lights and an irrigation system.  A full set up.  The neighbors reported there was mold all over the windows and when the police went into the house, the smell of mold could be smelled outside.  Our realtor claims she knew nothing about the extensive operation but had constant contact with the listing agent.  Is it possible that she did not know about this home before we put in an offer?  The home was cleaned up very well.  New carpet and paint and no smell of mold when you walk into the home.  Needless to say we cancelled the contract before getting ourselves into something that could possibly be harmful to our health, because we know that they did not tear down any walls to remove the possiblity of mold hidden in the walls.  Although she may be telling the truth, it's really hard to trust her with our purchase, we may have signed a buyer's contract, but that trust is broken and we don't want to continue with her.  Can we simply write a letter and cancel her services?

ANSWER: Dear Jo;

Thank you for your question... A similar situation happened in Santa Rosa, CA a couple of years ago. Proper disclosures were provided, and the property eventually sold.

Your agent very well may have not known about the situation you described, but as I mentioned earlier, the disclosures play an important part when buying a home. If the home was not a foreclosure property, the owner would not legally have to disclose the pot situation. On the other hand,if the property was owned by the landlord when you presented your offer, the owner by law has to provide you the information regarding the pot greenhouse and seizure of the pot plants within a period of days in the contract after the acceptance of the offer. If seller does not provide the knowledge of the seizure and pot farm in the home, the owner could very well be liable for damages after the close of escrow for non-disclosure. The real estate agents and their brokers may also be liable for damages as well for the lack of disclosure if they knew at the time an offer was placed the circumstances surrounding the property. If you had completed the purchase, I would recommend you contact a good real estate attorney to review all documentation to determine your position of damages due to the potential lack of disclosure by the seller and the agents, primarily the listing agent and their broker.

It is not unusual to lose faith in your agent under these circumstances. The buyers agent normally does not know the circumstances of a house until they read the disclosures and question any circumstance that may have an effect on the desirability of the home as your advocate as required by law.

If you decide to use another agent but have signed a buyer agreement with your agent, first contact the agent to let her know that due to the circumstances you felt she did not live up to her responsibilities as your agent, and would no longer use her services as your Realtor. If there is a problem with her acceptance of your decision, call the broker/manager of her office to explain your dissatisfaction and desire to break from the agreement you signed due to a potential breach of her responsibilities as your agent. If no agreement was signed, you have absolutely no obligation to continue the relationship with her.

If you decide to not use her as a result of your dissatisfaction of her performance, contact me. I can refer you to a good professional Realtor in your area. There is absolutely no cost to you for my services. Please remember, you don’t pay the commission for your Realtor, the Seller does, so why not get the best Realtor available to represent you in the purchase of your home. If you need my assistance, don’t hesitate to call me at 415-259-4518 or e-mail me at JohnHendricks@Marin1.com

I would be glad to consult with you regarding your options. I hope this helped you, and I look forward to hearing from you if you feel you need my help.

Warmest Regards;
John Hendricks
Frank Howard Allen Realtors
Greenbrae, CA 94904    


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

QUESTION: John,
Thank you for your quick response.  Appreciate your honesty. Can you recommend a reliable and honest realtor who covers the Mt. House/Tracy area.  Looking for someone who puts the needs of their clients first.

Thanks,


Answer
Dear Jo;

Thank you for getting back to me. Yes, I can help you through the process of getting an experienced Realtor for the job of finding you a home.

If you would please e-mail me at JohnHendricks@Marin1.com with the following information, I can then start the process. Once again there is no cost to you for having me help you.

1) Contact information for both you and your husband such as a phone number, e-mail address and when would be a good time to chat on the phone.

2) What kind of home are you looking for? 3-4 bedroom, 2+ baths, price range, and location such as Mt. House in the Tracy area. Please be as specific as you can on the area especially.

3) If you presented an offer, you must be pre-approved for a loan. What kind of loan are you getting? How much is your down payment? Are you a first time buyer? If you are, are you aware of the Federal Tax Credit you can receive if you buy a home before December 1, 2009?

4) How soon do you want to buy a home? Since you have written an offer already, I assume you are ready now if you found the right home, correct?

If you would please e-mail me the information that would be great. If you would like to talk with me personally, please do not hesitate to call me at 415-259-4518

I look forward to help you and hearing from you shortly.

Warmest Regards;
John Hendricks
Frank Howard Allen Realtor
Greenbrae, CA 94904