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  #1  
Old 11-20-2004, 12:55 PM
handyman9179
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buyer made unauthorized repairs


What is the name of your state? California

I need some legal advice. This may sound silly but you never know: Is it legal in California for a buyer to make alterations to a house(install new carpet and flooring, paint, remove a porch, gut walls, change the locks, etc.) or the property before escrow has closed, without permission from the seller?

I ask because my family is in the process of selling a home here and it has been held up because the buyer requested some last minute cosmetic repairs as per his lender's request. His loan is contingent on the house having new carpet and flooring in the bathroom and kitchen.

We were willing to lower the sales price to cover the repairs, but the buyer verbally said, as per our realtor, that his lender insisted that the home have new carpet, new flooring, and new interior paint. We said we wanted to see the appraisal before we would negotiate the repairs. While we were waiting for the appraisal he apparently , with the help our sneaky realtor, went and started tearing up the house -- above and beyond his initial repair request even -- without our permission.

The realtor wants us to sign a hold harmless agreement releasing him and his company from any liability, and the buyer expect us to credit him half the costs of these unauthorized repairs at the close of escrow.

What do you do when you cannot trust your own realtor?
  #2  
Old 11-20-2004, 04:51 PM
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Join Date: Apr 2002
Location: snowland
Posts: 6,831
if you dont trust your realtor go see a lawyer who can reivew every step taken and make sure your interest are met . If the realtor doesnt like it too bad , GO change the locks again and keep the buyer out till closing this is stilll your property and you dont have to allow any work to be done nor do you have to agree to pay what is being asked of you . GO up top and use the links to find a real estate atty .
  #3  
Old 12-31-2004, 07:21 AM
handyman9179
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California

This a follow up. We got a lawyer, but unfortunately his time is being eaten up by the buyer's constant settlement renegotiations. It's getting ridiculous since his settlement offers are jokes and no where near acceptable to us.

However, the lawyer says that if we do not accept a settlement soon then we will have to go to mediation and then litigation and/or arbitration which could cost tens of thousands and months or years to resolve.

This is not acceptable as it would be cheaper to eat the $15,000 to $20,000 in damages than to drag it out in a court.

The listing with the property is now up and we have signed no extension. Escrow was suppose to have closed nearly two months ago.

According to the purchase agreement, the buyer had 17 das to submit any request for repairs. But he waited roughly a month before he submitted the repair request clearly missing his deadline, which we promptly rejected in writing anyway.

He insists that he cannot get his financing together until the house is restored, but he will only agree to allow his unlicensed workers to do the restoration. We will not agree to this.

We can find other buyers who will be interested in the property but not so long as this man is keeping his foot in the door.


So, can we file an notice to perform allowing us to terminate the entire transaction unless he closes escrow within the week? And if so, will this also terminate the mediation and/or arbitration clause in the purchase agreement?
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