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Irwin Law
Irwin Law, Lawyer
Category: Real Estate Law
Satisfied Customers: 6777
Experience:  Lawyer- Broker 30+years - foreclosure, short sale, liens, title attorney.
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Indiana real estate: We signed a standard Indiana real estate

Customer Question

Indiana real estate: We signed a standard Indiana real estate purchase agreement to purchase a house for cash noting that it was contingent upon an inspection and real estate appraisal. Our real estate appraisal came back fine but the inspection found major problems with the foundation, (crawl space). The home is approx. 13 years old. The crawl space was excessively wet, including wood that was rotting, with suspected mold. The owners had installed a sump pump at some point after the house was built. However the poorly installed pump only added to the deteriorating condition of the foundation. All of this was included in our inspection report. Based upon this information we no longer want the house. However we are told by our agent that the seller must be given the opportunity to fix it we provided the sellers with the inspectors report with a written expectation that everything be fixed and we be allowed to inspect the property again at least 7 days before closing. We gave them 5 business days to respond. Their response, which came 2 hours after our communicated deadline, Was that they will fix it before closing but not 7 days. They offered no specific date. We do not want a home with foundation problems, even if they fix it, we do not want the problem of having a home that had known foundation problems. Our real estate agent is telling us that the sellers rights our clear in Indiana and that we can't back out of this deal. What are our rights? We no longer want this home and believe we are entitled to our earnest money back. In our opinion, they knowingly did not disclose the issue, they failed to respond to our inspection report deadline, and they want us to move our second inspection date back. What are our option as we believe we should not be forced to continue in this process and buy a house we no longer want.
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Irwin Law replied 6 months ago.
I am familiar with the Indiana purchase agreement seeing as how I practice here; however I don't have one in front of me so that I can review the inspection clause. I think there might be a provision in their that if the inspection reveals repairs that are in excess of a certain amount of money, they perhaps $2500 that the buyer may cancel the sale. Also, you did not mention whether or not you were given the Sellers disclosure of conditions prior to signing your purchase agreement. If not, or if there were material non-disclosure, You might be able to cancel the contract based on that. Another thing is that the repairs must be completed by a date that is long enough before closing that you have time to have the property reinspected. A lot depends on the exact wording of your inspection clause and the repair parameters that were put into the agreement. Without seeing those I can't give you a definitive answer. Perhaps you could scan that part of the contract and email me a copy with our paperclip attachment feature.
Customer: replied 5 months ago.
Thank you for your response. I have the document and reviewed it. It does not have a specific $ amount disclosed. I have attached the document and your review of this is appreciated.
Expert:  Irwin Law replied 5 months ago.
Good morning Roy: Thanks for sending me the agreement. Lines 212 through 221 covers the situation that you are in. Unfortunately, this form, favors sellers, and your real estate broker is correct. It does not give you an absolute right to cancel the purchase agreement accept on certain specified facts. It gives the seller the absolute right to make the repairs of the defective condition before closing. That is what the seller has offered to do. If satisfactory repairs are made before the date of closing, then you do not have the right to cancel. Again, favoring the seller the default provisions are risky to the buyer who, without good cause, decides not to close. Question: can the repairs be accomplished by May 10? If not, I don't believe that you are under an obligation to extend the closing date, and that may be your only "out." I hope that this information is helpful.
Expert:  Irwin Law replied 5 months ago.
Hello again. Do you have a follow-up question? I am not an employee of Just Answer and I receive credit for assisting you based on your rating. I hope that you will enter a positive rating for my assistance here by clicking on 3, 4, or 5, for which there is no additional cost to you. Thanks again for using JUST ANSWER.

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