Expert: Rick Stone, Broker/Owner, CRS, ABR, GRI - 6/11/2007

Question
QUESTION: I sold my home to a Lawyer (Child/Family Law)in 2004. He insisted upon doing his own inspection. He also forced his way into the home on my move day without prior authorization.Upon taking possession he began pulling up tile, poking holes in walls and in the stone showers. He  accused me of knowing of a water leak, that the carpet was damaged by my dogs. This was discussed by myself and him has having to be replaced. He offered me less than the asking price and I noted this as being sufficient to cover the replacement of the carpet. He now denies this. I'm headed into Arbitration in July. I have terminal cancer and have been hounded by this since 2004. I have spent nearly $10,000 in attorney fees to date. He has spent maybe $300 as he is using a pal to represent him that owes him a favor. If he loses the case he is liable for my attorney fees. In your estimation do you think I have a good case?


ANSWER: Good morning Antoinette and thank you for your question.  My server has been down, I apoligise for not reposnding sooner.

Oh boy - this is a classic 'he said / she said' and I don't know if I will have an answer to offer that your attorney has not already argued.

In my opinion, at the time the buyer conducted his home inspection, any deficiencies that had been discovered as a result of the inspection, should had been written into an addendum that would had also served to release the inspection contingency.

In that addendum, what ever remedy that was agreed to between buyer and seller should had also been written into that document so that at closing, the settlement attorney and the buyers lender would had a record of any problems and how they were to be delt with.

I am suprised that you did not write that the settlement attorney did not question the price reduction, the status of the home inspection since it should had been noted in the purchase agreement and of any problems that arose from it.

If there was a price reduction that was agreed to by both parties prior to settlement to compensate the buyer for the noted problems, that should had been refleted on both the original purchase agreement and or in the home inspection addendum.   

I have to presume since you had not mentioned that you did not have a REALTOR working for you - this was a For Sale By Owner Situation.  If you did have a REALTOR, you should also be sueing this agent for not properly recording all elements of the transaction and for not properly representing you.

I hope that during arbitration, it will become evident that the attorney will be found guilty of taking advantage of your ignorance of contract law by not insisting any and all agreements or changes to the agreement must be placed in writing - this is a well known fact and as an attorney, he would certainly be aware of this no matter what type of practice he is involved in.

I am afraid this is all I can offer and I am sorry for your situation - you should also write to one of the attornies on this site for a legal opinion and be sure to say what state you are in as there are subtle differences in each jurisdiction.

You may certainly write me again if you have any further questions, I hope this will be of some help.

best of luck,
Rick

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

QUESTION: I did have a Realtor representing me, consequently my agent became his agent as well.  He did his inspection and asked for 3 items to be fixed. I fixed what he wanted fixed (and went further to fix beyond what he had asked). He found some ducks in the attic that needed to be re-wrapped,..I re-wrapped all of them (professionally)..He also wanted the bath tub drain stopped replaced...I had a plumber replace the entire stopper unit..he wanted screens replaced (one wad damaged) I agreed to an allowance in escrow $300. He signed off of all (and waived everything) and did not began tearing up the tiles and further inspecting the house until after he moved in!!!!

The offer of $460k was made (asking $475) without reference to repairs. I later pointed out that I would not replace the carpet because of the lower offer.

Answer
Hello again,  

Ok = if the buyer did not discover these new problems during the home inspection or by doing their own due diligence, and signed off at closing that they accepted the the house in the condition it is in at the time of closing - that is that. Unless it can be proved that you intentionally covered up a problem such as painted over a basement wall to cover up water invasion, you are not liable for anything that the buyer later discovers.

You can certainly accept any offer - it does not matter that you listed a home at one price and accepted a lower offer - that is what you accepted and for what ever reasons that youy did.  If you said "I will replace this or that, unless it is in writing, the judge is just going to say - "where is that shown in the contract?" and that is what the contract documents will show as the contract amount.

If after the documents are ratified however and you then change the price or conditions, then those changes are required to be in writing.

As you say, if he later, after closing 'tore up' floor tiles and discovered a problem - that is simply of no consequence - it is going to be tough to prove that you would have known there was a problem beneath them.

Your buyer is being a jerk and I hope in arbitration it will come out.  

Rick