Expert: Karyn Foley - 9/19/2009

Question
this might be more legal, but my husband and I are leasing a house with the option to buy on a 24 month term. our house was built in the 1900's, we pay 1695 per month. we bought into the lease with option for 2000 and after the first year we renew the option to buy with another 2000 in addt. to a hike in the lease payment by 95. we did not find it necessary to get an inspection and in the lease it says thay tenant is responsible for all repairs. however, we discovered that the roof is soft and more importantly there is a hole in the roof. who is responsible? as we are not on the title we do not have homeowners insurance and the expense for roof repair is too costly out of pocket. can you be of any help!!!???

Answer
Dear Michelle, yes it may be more legal.  I do not have a copy of your contract so I can only take a chance on my response.  If your lease contract states that the tenant is responsible that you probably are responsible for the roof repairs.  You should obtain three estimates for repair from a licensed roofer to determine damages and costs.  However, usually purchase contracts have inspection clauses that allows the purchaser to get any and all inspections within a determined time period.  I would check over your contract and ascertain if that is the case, and what your options are after that.  For example, are you purchasing the house in "as is condition" which means sold in the condition it was when you saw it and that the owner/seller listed all disclosure items and condition of property systems and appliances of which the seller is aware?  You should investigate the property with your own inspector; perhaps many things are wrong with the property that lessens the value, or maybe not much else is wrong and you are still comfortable with the price, even if you were to make repairs.  Remember, it never hurts to try to cooperatively negotiate repairs, sticking to major items and major costs, not small, trivial matters.  You probably are obtaining financing, and many lenders will think twice about loaning on a home that has problems of deterioration that may jeopardize the value.  Some lenders will shy away from loaning where there are major issues such as roof repairs, additions not with permit (or will not include non-permitted square footage in their legal square footage which could bring in a value less than the sales price.   A lender will require a licensed appraiser prior to giving loan approval.  This will be paid out of your pocket and you must pay it whether or not you end up buying the home.  Prices are not going up, most instances in most places show prices could be still going down.  Are you still willing to purchase the home if the value is less?  It is still a buyer's market in most situations, so your seller may be more cooperative than you think.  I find it difficult to believe that you would go into a situation which could cost you money when you have no idea of how much this will entail.  Before you continue to obligate yourself financially, look into working with the seller with the above in mind.  If there is a conflict, and you feel you are in the right, then go to a real estate attorney.  Or, get out now and find another place to rent and look around with caution and act prudently in a new sale.  Or, if you love the house, take your chances, but only when you have more information on the total dollars.  Keep in mind however, that there could be additional problems arising in your next lease payment which would add costs to your ultimate purchase.  This seems to all put you in an unfair, unreasonable, and uncomfortable position.  A call or visit to an attorney may offer more sound advice and support.  Good luck, and think carefully before you proceed.  Good luck and let me know what happens and if I can answer any more questions as time goes by. Few people have ethics so this is not an ethical question; it is more of legality.  
When you enter into a purchase agreement, there will be a big package of disclosure items that the seller is obilgated to sign and a bigger onuc is put about the seller.   Karyn Foley