How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barrister Your Own Question
Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33713
Experience:  15 years real estate, Realtor. Landlord 26 years
19958803
Type Your Real Estate Law Question Here...
Barrister is online now
A new question is answered every 9 seconds

I have a problem with the closing of the purchase of a home

Customer Question

I have a problem with the closing of the purchase of a home we are willing to buy.
Six months ago we started to look several houses with one realtor. Finally we found the
right one. The realtor and us made an offer of $270,000. which was accepted. We went to
the Title Co. to make a contract of purchase. Everything seemed allright. Then, we were
told there was an open permit over the property. We sent the owner a letter letting him know that if he wanted we let go out of the contract if he didn't fix the problem. He
accepted to give the property clear. There was an addendum signed where he asked for 25
days to fix the property. Three additional addendums have been signed up to date, but now he has told us that we have no contract and that he is not selling the property to us.
The owner and my realtor work in the same real estate company and I never knew that. We are a family in need of this home, Thanks
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

.

Does the contract and extensions state that he has that extra time to try to get the problem fixed?

.

Or does it state that he has to get the problem fixed or it gives you the right to terminate?

.

Do you have something in writing stating that he agrees to convey clear title to the property free of any encumbrances, liens, or open permits?

.

.

thanks

Barrister

Customer: replied 1 year ago.
On the first addendum he asked for the time to fix the problems and then finish with the closings. Time went on and then he
asked for more time we gave him two additional addendums to go on with the finishing of the fixings.The
appraisal said the purchase value was $262,000. And the owner said if we didn't give him $265,000. He was not selling .
We agreed.
Customer: replied 1 year ago.
We have all documents regarding this contract and we are willing to send you all of these through your e-mail if you need these.
Expert:  Barrister replied 1 year ago.

Ok, this is a difficult situation here because it doesn't sound like he concretely agreed to get everything fixed by a certain date. I think that if there is nothing in writing that states that he definitively agrees to fix the problems with the permit, then when you granted him extensions, you just gave him more time to try and fix or determine if he wanted to undertake it at all.

.

Apparently he has decided that he doesn't want to repair the problems, which would leave you in the position of either terminating the contract and getting any earnest money back, negotiating a firm written contract where he definitively agrees to fix the problems by a certain date in return for $XXXX, or accepting the property in "as is" condition and seeing if you can negotiate a lower price once you determine what it will cost to fix the problems..

.

He is acting in bad faith here after requesting the extensions and failing to fix the problems here. But without anything that states he will have everything done by a set date or will be in breach, I think you will have a hard time suing him for breach of contract to force him to perform repairs and close.

.

In the alternative, if there is a written contract where he agrees to have everything fixed by the expiration of the extensions, then he is in breach and you can sue him for "specific performance" to complete the sale with clear title or for whatever it will cost to cure the problems so you can obtain a clear title.

.

The problem here is that your lender may not agree to make the loan on the property without clear title already existing so you might be forced to sue just to have him fix any title problems. The further issue is that this could take upwards of a year and thousands in attorney fees to get this in front of a judge and get a judgment against him.

.

So with all that said, it might be best to just terminate based on his breach, get your deposit back, and locate another house.

.

.

thanks

Barrister

Related Real Estate Law Questions