Buyer refused to close

[dannisutana]

What is the name of your state? Wisconsin

To make the long story short, I am the seller. I had a house in Wisconsin that I was selling through a real estate agency. I have not lived in the house in over two months because I moved out of state to New Mexico. The agent found a buyer. They made offer w/ inspection contingency. During inspection, there was a small amount of water that seeped from the walls onto the floor. Their inspector and buyers were not worried. They waived the inspection contingency. We agreed on all terms of contract including selling price and closing date. The closing was scheduled for 6/21. A couple of days before closing, the final walk thru took place. During that time, there was water once again in the basement. This time, the realtor brought in a plumber to take a second look. The plumber suggested that it may be the sum pump and that it should be replaced. Needless to say, the buyers refused to sign closing paperwork.

My issue is, they waived further inspection... signed all the necessary paperwork to get to the closing date and decide to back out. During this time, I already called the electric company to turn off power, cancel home owner's insurance policy as of 6/22... because of the contract. I know this isn't ethical but what are my rights? They decided to hire an attorney and I am waiting for a response for a few. Are they legally binded to contract? I think I am entitled to the earnest money (less than 1% of total purchase) but can I sue them for breach of contract and ask for payment for loss of possible sale?What is the name of your state?

[pojo2]

You are going to lose this sell over a couple of hundred bucks for a new sump pump? Geez.

So what does your Agent say?

[dannisutana]

I honestly don't think the sum pump is the real issue... There's got to be more to it. The sum pump would have to be replaced eventually and the cost would be $5600. When I lived in the house, the sum pump worked... it still works. It's like driving an old car... you know you will have to replace it eventually but it works so do you run out and buy a new car right away or ride out until it dies?

I am waiting to hear back from a few attorneys today for advice. I really do not care what their real issues are and why they breached contract. I'm more concerned about the fact that a contract was broken.

[pojo2]

The sum pump would have to be replaced eventually and the cost would be $5600.

O M G we have to be talking about 2 different things here. Do you mean the entire sump system or just the pump? Heck I do not even see the entire system costing this much and we are in about the same neck of the woods. A sump pump can be purchased at Lowe's,Menards, H D and so on for a couple of hundred bucks, probably less, so please I am now way curious what ARE you talking about?

[samk]

$5600 for a pump is ridiculous. There absolutley HAS to be something else involved. I had a sump pump installed for about $600 in 2004. Now, the french drains I had installed in '97 were about $9700.

[alent1234]

my guess is there is something in the state law that says the house you sell has to be in habitable condition

[nextwife]

Originally Posted by alent1234

my guess is there is something in the state law that says the house you sell has to be in habitable condition

No there is not. Homes are bought for tear downs, and redevelopment use all the time. And rehabbers pick up really trashed homes and have no trouble closing.

And water seepage in the basement, especially if in the areas in which we., here in WI, have experienced a far wetter than usual spring, does not, of itself, automatically mean a home is not "habitable" - unless one plans to reside in the basement.

I replaced a sump pump about two years ago in SE WI, and it was unsder $400.00. We even redid the drain tile around the interior perimeteonly about $3800.

[dannisutana]

OK, realtor clarified the quote was for the entire system, not just sump pump. But another plumber looked at it and stated the palmer valve was stuck. He is going to try to "unstick" it. Cost for that is only $100. Nonetheless, the buyers sent paperwork for me to sign. It's paperwork to relieve them from any liability from contract. They also want their earnest money back. At this point, I do not have to sign anything or agree to give them the earnest money. They tied up a possible sale of my house to somebody else for over a month. The earnest money was less than 1% of sale price of house. I found out they called a few attorneys but I don't know if they hired one. If they do, it would be more money wasted on their end.

[nextwife]

Nobody checked the Palmer valve up to now? Gee, that's one of the first things to check out if the water's pooling around the foundation.