What my attorney said about the roof on the house I want to buy

terry123 said:
I never put a deposit down and have bought and sold 3 houses and one condo. I was told one time that due to my credit rating it was not required.
Click to expand...
If a couple of weeks, maybe more before closing, after signing the Agreement to Purchase you changed your mind, what kind of compensation would the sellers have?
 
debodun said:
The home inspection on Wednesday revealed a lot of minor problems, but his main concern was the condition of the roof. The report was sent to my realty agent and my attorney. My buyer's agent then has someone come and give an estimate on how much it would cost to put on a new roof. To do the area where the most problema are would be $5900 and to do the whole roof would be $8900. My attorney called earlier and asked if the roof condition was a deal-breaker. I said it wasn't if they took the full estimated cost of repairing the roof off of the selling price or had the roof repaired. She said the seller is not obligated do either, which is something opposite my buyer's agent said. The agent indicated that they either have to repair the roof or take the cost of it off the selling price. Now I'm confused, unless I didn't understand something.
Click to expand...
Ohhh, my buyers drove me crazy over our roof. But, the seller does not have to repair anything or take money off for anything, or do anything requested by a buyer. All houses are sold “as is” buyer beware. No one can know everything that is wrong with a house.
 

Aunt Marg said:
1. The roof needs done, Deb, not repaired. It states that the roof has reached it's end. Deal breaker for me.
2. Minor repairs are required to plumbing vents on the roof... evidence of moisture penetration. There could be rot in the roof, structure deficiencies present, etc. This in itself would be a deal breaker for me automatically in itself.
3. There is signs of deteriorated trim. Another deal breaker for me.
4. Fireplace/wood stove flu condition... inspection does not include. When you are looking to purchase a home you want ALL inspected, every nook, every cranny, every single square inch, and you want an itemized rundown of all. No exceptions. All inspected, completely, 100%.
5. Bathroom fixture needs repaired. NO. Bathroom fixture needs replaced.
6. Heating system. Inspector unable to locate a service record indicating last time it had a complete exhaustive evaluation performed on it. A new furnace can run $10,000 in Canadian dollars. Do you want to purchase a home where you are unaware of the condition of such?
7. Main drain of the house had a towel over it and has leaked in the past. Major red flags, Deb.
8. Sump pump in basement needs a new check valve, pump needs tested.

I wouldn't be able to live with myself if I advised you to do anything other than to walk away from this deal.

The list I complied was a quick scan of the inspection report. There are other outstanding issues within.
Click to expand...
A house furnace costs 10,000? Is it made of gold? I am shocked, really shocked.
 
fmdog44 said:
I saw a piece on the freaky home sales status now with homes being at a premium. People are so desperate to find and buy a home some even pass on a home inspection just so they can lock in a deal and it showed some sorry examples of homes people bought that needed major repairs found after the sale. The average time a home stays on the For Sale list is 17 days where I live.
Click to expand...
Where I live, 6 days. My house sold the first day and they put down 15,000 earnest money. We just passed due diligence. I wish they would back out. They drove me nuts over the roof. I would get the 15,000, use it for a new roof, and sell the house to someone else for even more money.

Such a nice dream 😂
 
Aneeda72 said:
A house furnace costs 10,000? Is it made of gold? I am shocked, really shocked.
Click to expand...
Just asked my husband re: the cost of, and he said for a high-end, high-efficiency furnace, a typical homeowner would be looking at an $8,000 bill after all is said and done, with a slight variance on either side.
 
Jules said:
Every sale I’ve been involved with requires one and I‘ve sold privately four times and through real estate.
Click to expand...
I'm with, Pinky, shocked (WOW) emoji. 😲

Never put a deposit down on any home we've bought, was not required.

Have never encountered anyone here in Canada that was required to put a deposit down on a home they were interested in.

We reside in the province of British Columbia.
 
It sounds like Deb is in the process of swapping "problem A" (her present dilapidated property), for problem B (another house that has not been well maintained). To me, it sounds like the best option would be to sell everything and move to a decent apartment...where someone assumes the responsibility of maintenance.
 
Don M. said:
It sounds like Deb is in the process of swapping "problem A" (her present dilapidated property), for problem B (another house that has not been well maintained). To me, it sounds like the best option would be to sell everything and move to a decent apartment...where someone assumes the responsibility of maintenance.
Click to expand...
Sadly that is my thought, too, Don.
 
debodun said:
My attorney called earlier and asked if the roof condition was a deal-breaker. I said it wasn't if they took the full estimated cost of repairing the roof off of the selling price or had the roof repaired. She said the seller is not obligated do either, which is something opposite my buyer's agent said. The agent indicated that they either have to repair the roof or take the cost of it off the selling price. Now I'm confused, unless I didn't understand something.
Click to expand...
As others have said assuming your attorney has reviewed the contract she/he is probably right, not the realtor. That is the way most contracts in the US work, but not all and state laws do vary.

It seems to me you have a reasonably good inspection, and it does provide the basis for you to try negotiating with the seller. In the end however you are not likely to get everything you want, and the seller does not likely have to give you anything. Then you will need to decide if you still want the house. You can probably get your deposit back, again depends on what the contract says, but then you don't get the house. Given today's market conditions many people are accepting problems like these without getting much from the seller.

It seems to me everything your inspector found is fixable, and not unusual for an older home, its just about money. And as has been pointed out, if you do the fixing yourself finding a reliable contractor right now might be hard. It is possible there is an ongoing leak (staining), if that is the case you will either need to figure out how to stop it quickly, or live with more damage. However the staining might be old and not a sign of current leakage, no way to tell from the report.

Best of luck with it.
 
Aunt Marg said:
Never put a deposit down on any home we've bought, was not required.

Have never encountered anyone here in Canada that was required to put a deposit down on a home they were interested in.
Click to expand...
Very different here in the US, I have bought and sold a couple of dozen properties in my life, never without deposits.

Though it is my observation that deposits are meaning less and less, standard contracts are giving buyers more options to get out. That said my brother had a home sale fall through in Florida, just last month. Buyer backed out at the last minute without good reason. My brother kept the deposit, legally.
 
When does your 'home inspection condition' expire; per the terms listed in your offer to purchase? They normally expire pretty quickly (a few days) so I'm a little confused as to why no one has asked you to sign off on the inspection condition yet?
 
Alligatorob said:
Very different here in the US, I have bought and sold a couple of dozen properties in my life, never without deposits.

Though it is my observation that deposits are meaning less and less, standard contracts are giving buyers more options to get out. That said my brother had a home sale fall through in Florida, just last month. Buyer backed out at the last minute without good reason. My brother kept the deposit, legally.
Click to expand...
Deposits are required everywhere when someone makes an offer to purchase, as far as I know. It's a sign of commitment from the purchaser to the seller. What that deposit amount is would be stated in the agreement of purchase. If I as a seller had 2 offers for the same price and one had a 5% deposit and the other had a 10% deposit; guess which one I take ;)

Not only does the seller get to keep the deposit amount should the buyer back out of the sale before the closing date for no legal reason but the original purchaser, who lost their deposit money, is also liable for any differential should the following sale of the property be less than the amount stated in the original offer to purchase, providing the subsequent offer is 'reasonable'.

Example: I sell my property to person 'A' for $300 grand. They back out without good reason, I keep their deposit and I re-list the property then sell it to person 'B' for $285 grand because that's the best offer I get at that time due to market conditions. Person 'A' is then liable for an addiction $15 grand to be paid to me. That's why you have to be very careful as a buyer in terms of ever trying to back out of a deal, unless you have a rock solid reason such as a condition of purchase not being met.

.
 
MrPants said:
Not only does the seller get to keep the deposit amount should the buyer back out of the sale before the closing date for no legal reason but the original purchaser, who lost their deposit money, is also liable for any differential should the following sale of the property be less than the amount stated in the original offer to purchase
Click to expand...
That used to be the case, and sometimes still is. However in more recent "standard" real estate contracts I have seen explicit wording limiting the buyer's liability to the amount of the deposit. So like all things real estate it depends on what the contract says. Before signing read it, understand it, if you have questions ask a lawyer. Don't rely on a real estate agent to explain it to you, their motive is usually just to make the sale - legal interpretations are not a real estate agent's expertise.
 
Capt Lightning said:
In Scotland the procedure used to be that the prospective purchaser paid for a survey and from that, a reasonable price would be offered. If the prospective purchaser was unsuccessful, it meant that they were out of pocket, so the rules were changed and now the seller has an independent survey done, and prospective purchasers can inspect that.

In general, the purchaser will be aware of the general state of the property and any repairs that may need to be done. The offer price will reflect that. If the offer is accepted, it forms the basis of a legal contract (this is one place Scots law is different from the rest of the UK).

It is not unusual for houses to be sold on the understanding that the purchaser will undertake extensive repairs - the price of course will reflect that.

For example....
A unique opportunity to acquire an end terraced dwellinghouse in need of complete renovation and will provide a substantial family home upon completion, set in an extensive plot.

The house comprises a lounge, bedroom, Kitchen, sitting room and bathroom on the ground floor and two bedrooms on the upper floor. To the rear is an extensive garden with some outbuildings. The garden has a vast array of mature trees (this is estate agent talk for "a jungle").

This price will probably be equivalent $50k and would cost about the same to renovate it. So for $100k, it would probably be worth about $150-$180k on completion.

View attachment 172994
Click to expand...
Are you saying that a prospective buyer would have the inspection done prior to making an offer? So, if I was looking to buy a house that was offered at $100,000, and the inspection would state that the roof needed replaced, I would make an offer based upon having the roof replaced, like perhaps $90,000?
 
MrPants said:
Deposits are required everywhere when someone makes an offer to purchase, as far as I know. It's a sign of commitment from the purchaser to the seller. What that deposit amount is would be stated in the agreement of purchase. If I as a seller had 2 offers for the same price and one had a 5% deposit and the other had a 10% deposit; guess which one I take ;)

Not only does the seller get to keep the deposit amount should the buyer back out of the sale before the closing date for no legal reason but the original purchaser, who lost their deposit money, is also liable for any differential should the following sale of the property be less than the amount stated in the original offer to purchase, providing the subsequent offer is 'reasonable'.

Example: I sell my property to person 'A' for $300 grand. They back out without good reason, I keep their deposit and I re-list the property then sell it to person 'B' for $285 grand because that's the best offer I get at that time due to market conditions. Person 'A' is then liable for an addiction $15 grand to be paid to me. That's why you have to be very careful as a buyer in terms of ever trying to back out of a deal, unless you have a rock solid reason such as a condition of purchase not being met.

.
Click to expand...
In Canada?

I don't think so.

We've put offers in on homes and properties in the past and never once attached a deposit to our offers, nor were we asked for a deposit.

No such conditions applied.
 
oldman said:
Are you saying that a prospective buyer would have the inspection done prior to making an offer? So, if I was looking to buy a house that was offered at $100,000, and the inspection would state that the roof needed replaced, I would make an offer based upon having the roof replaced, like perhaps $90,000?
Click to expand...
You can offer whatever you want based only on the fact that you want to offer less.
 
Aunt Marg said:
In Canada?

I don't think so.

We've put offers in on homes and properties in the past and never once attached a deposit to our offers, nor were we asked for a deposit.

No such conditions applied.
Click to expand...
Well, in the USA they are required. In some countries you must pay cash for a house. Just depends on where you live. Since deb is in the USA I would guess most responses are talking about the USA.
 
Aunt Marg said:
In Canada?

I don't think so.

We've put offers in on homes and properties in the past and never once attached a deposit to our offers, nor were we asked for a deposit.

No such conditions applied.
Click to expand...
I have done the same, but once my offer was accepted, then I had to put up a good faith deposit.
 
Aneeda72 said:
A mortgage is when you have borrowed the money from the bank for the house and are paying it back.
Click to expand...
That is correct.

So a "deposit" in your country is? Handing a sum of money over to the seller to say thanks? To reflect job well done? Here is a little bonus for your effort?

Once the offer is accepted, you don't have to come up with the full sale price, you simply put down a deposit?

So if my husband and I were to buy a home for $750,000, when the seller accepts our offer we just throw a "deposit" their way... here seller, here's... $10,000 for you, just because?
 
Aunt Marg said:
That is correct.

So a "deposit" in your country is? Handing a sum of money over to the seller to say thanks? To reflect job well done? Here is a little bonus for your effort?

Once the offer is accepted, you don't have to come up with the full sale price, you simply put down a deposit?

So if my husband and I were to buy a home for $750,000, when the seller accepts our offer we just throw a "deposit" their way... here seller, here's... $10,000 for you, just because?
Click to expand...
No, the deposit id applied to the purchase price.
 

You must log in or register to reply here.

Back
Top