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Andrea, Esq.
Andrea, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 12554
Experience:  I have practiced law for 25 yrs. with an emphasis on real estate, business law, criminal defense and family law.
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For Andrea only, how do I get out of the contract discussed

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For Andrea only, how do I get out of the contract discussed earlier?

Hi, Mike, Thank you for directing your question to me and thank you for understanding the Terms of Service,


Here is what I would like you to do,


Read through the Agreement of Sale and tell me what it is contingent upon. Just like it was contingent on the buyer being approved for financing. For example, please answer the following and please number your answers to correspond with the questions below,


1. Is the Agreement of Sale contingent on a satisfactory building inspection report ?


2. Or is it contingent on a satisfactory termite inspection report ?


3. If your son is married, did his wife sign the Agreement of Sale also ?


4. Does it have a Certificate of Occupancy as a four unit property ?


5. Ask the seller if the property was built as a four-family house, or was it converted from something else ?


6. If it was converted, ask the seller to show you all required permits for the construction that either he or his contractor obtained?


7. Was anything done on the inside of the units that would require a permit ?


8. Order a title report from a reputable title company such as Chicago Title or a company comparable to Chicago Title. That costs about $150, but that will give you the "legal" condition of the property and you might find something you can object to in the title report;


9. Please tell me what conditions, if any, the seller must meet;


10. How many pages is the Agreement of Sale ?


Basically, I would like you to see if there is anything on the buyer's side that requires approval by the buyer

Customer: replied 3 years ago.

The buidling is very old and was a train station at one point. It was converted to a 4 unit building I believe prior to this seller.


Its contingent upon an appraised value greater than or equal sale value. Haven't done that yet since he just tried to pull this seller will finance at the last minute and contract expires next week.

The purchase agreement is an "improved property" and is 7 pages long.


Inspector came through with a number of issues. The seller has agreed to fix but not with licensed contractors - he has his own. there are some timing issues here since we didn't receive the scaned document until after the alloted time, but it was dated correctly. Property has NO insulation but he agreed to put in attic only.


Completion of this transaction shall be contingent upon the Buyer's ability to obtain a favorable written commitment for homeowner's insurance within __ days after acceptance of this Agreement


If the Buyer reasonably believes that the Inspection Report reveals a DEFECT with the Property (under

Indiana law, "Defect" means a condition that would have a significant adverse effect on the value of the

Property, that would significantly impair the health or safety of future occupants of the Property, or that if not

repaired, removed,pr replaced would significantly shorten or adversely affect the expected normal life of the

premises), and the ,Seller is unable or unwilling to remedy the defect to the Buyer's reasonable satisfaction

before closinq (or at a time otherwise agreed to by the parties), then Buyer may terminate this Agreement or

waive such defect and the transaction s~)all proceed toward closing. BUYER AGREES THAT ANY




Most of the windows were non functional and the buyer stated that we new the windows needed to be replaced at some point. However, we had no idea that the windows were that bad in every unit.


Okay, Mike, I see several grounds here where your son could reasonably declare the Agreement of Sale null, void and of no further legal effect. Please give me a few minutes to type out everything because my typing leaves a lot to be desired :) Okay ?




Customer: replied 3 years ago.


Hi, Mike, Thank you for your kind patience regarding my typing,


I probably would be able to find more grounds to get out of this Agreement of Sale if I had it in front of me, but hopefully the points you brought up and which I address below will be sufficient,

1. It does not matter that the property was converted to what it is today prior to the seller taking title. The person who did the conversion or his contractor had to have obtained all the necessary permits to do so and upon completion, if everything was done properly, the structure should have been issued a Certificate of Occupancy as a four-family dwelling. If there is no Certificate of Occupancy, that means it either was neverrequested, or the Building Department or Department of License and Inspection found that there were defects which prevented them from issuing a Certificate of Occupancy. For your son's purposes, the reason does not matter. If the seller cannot produce a Certificate of Occupancy for a four-family dwelling, your son would not have to go through with the purchase of the property;

2. It is the buyer's responsibility to get a property appraisal. So, you or your son must, absolutely must, find a licensed real estate appraiser to do a formal appraisal and report before the contract time expires. If the contract time expires and you do not have an appraisal, you will not be able to use this as a grounds for getting out of the Agreement of Sale. Ask the appraiser to look into whether all the permits were obtained when it was converted to a four-family dwelling;



3. All repairs which seller has agreed to make must be by licensed contractors and subcontractors, there are no "ifs, ands, or buts" to this requirement and check to see whether permits are required for any of the repairs. If permits are required, do not say anything, let the seller dig himself into a deeper hole. Just find out from the municipality or the Township if permits are required for the repair work that he is doing. Also ask the Department of Buildings or the Department of License and Inspection what the insulation requirements for the building are for that particular property. You might even ask for a scheduled appointment to have a City Building Inspector look at the property at the very last minute, like one day before the contract expires (so that seller will not have enough time to correct anything). If seller asks for an extension of time, you have every right to refuse any requests for extensions of time;



4. Call up an insurance company and ask them to send someone out to inspect the property when you will be there. Hopefully, they will not issue any commitment for any type of homeowner's insurance policy. But you must call an insurance company to fulfill your obligation imposed by the Agreement of Sale;


5. The statement in the Agreement of Sale alleging that any "DEFECT PREVIOUSLY DISCLOSED TO BUYER ... SHALL NOT BE A BASIS FOR TERMINATION OF THIS AGREEMENT..." is nonsense on the part of the seller. The fact that a defect was disclosed to the buyer does not tell the buyer if it is a Code violation, or if he will be fined or penalized when he becomes owner of the property. This is another reason why it is imperative for a city inspector to come out and inspect the property - And, ask how long it would take the inspector to prepare and issue a report. You want to have something in hand if you are going to declare the Agreement of Sale null, void, and of no further legal effect;



6. Tell the inspector to pay special attention to the nonfunctioning windows and if they present a safety hazard in case of fire and to include that in his report. Also ask the inspector how many families can the property accommodate, or how many floors must the property be, before fire escapes are required,





If I have not Answered your question completely, please use the "Reply" button to let me know and I will be glad to explain further,


Please be kind enough to rate Excellent Service" so that I receive credit for assisting you,


Bonus and Positive Feedback on survey is very much appreciated,





Andrea, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 12554
Experience: I have practiced law for 25 yrs. with an emphasis on real estate, business law, criminal defense and family law.
Andrea, Esq. and 2 other Real Estate Law Specialists are ready to help you
Customer: replied 3 years ago.

You're a dream, thank you!!

Hi, Mike, Thank you for the Excellent Service" rating, I appreciate it greatly, As I told you before, if you have any further questions or have questions in the future, please feel free to ask for me by typing my name at the beginning of your question in the same way you did before,


"For Andrea only .......... "

I have 25 years experience in the general practice of law and a post doctoral degree in Taxation, but in my private practice I concentrate on real estate and business transactions, family law, and criminal defense. JustAnswer divides up the categories so that no customer has to wait too long for an Answer. The categories to which I am assigned are Legal, Real Estate Law, Employment Law, Consumer Protection, Personal Injury, and Traffic Law. So, if you have any questions in those categories, please feel free to ask for me,



Thank you for once again allowing me the opportunity to assist you. Please let me know what the seller's response is, or if the seller gives your son any trouble in getting out of the Agreement of Sale,



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