Closing Nightmare

I bought a house in GA on May 28. Prior to closing, I had the house inspected, and it was agreed upon that repairs would be made. At closing, I was assured that repairs had been made; however, I was unable to get the house inspected until after closing. I then learned that repairs have not been made, and it has been like pulling teeth to get the repairs complete. Repairs that have been done are not professional, and others have not been fixed adequately. Today, I had someone start a yearly pest control service, and because of so many other problems, I asked that he inspect for termites. He told us that the home has previous infestation, and he noticed some active tunnels. In addition, there are major wood braces under the house that are directly in the ground supporting the foundation of the house. The pest control company said that the termites could not be treated until this was corrected. As stated, we had the house inspected prior to closing, and the inspector did not disclose any termites. In addition, the seller had home inspected by a pest control company, and the form shows that there was no previous infestation and no active infestation. I am so frustrated; is there any legal recourse that I can take? If I had known all of these problems existed, I would never have purchased the house; in fact, is there any way to get out of this deal? Who should we contact? Who is liable? What is my best course of action?

[HomeGuru]

You had the house inspected then could not until after closing. I'm not understanding.

This is in reply to Home Guru. Prior to closing I had the house pre-inspected and some deficiencies were noted. These were to be repaired prior to closing. The day prior to closing I was informed that the repairs to the house had been made. I tried to get the house inspector to come and reinspect the house but he was unable to do so until 2 days after closing. During closing the owners real estate agent informed me that the repairs on the house had been made. This was mentioned in front of the closing lawyer and my real estate agent. Two days after closing the house inspector came and inspected the house. I was informed that nothing had been done. I contacted the seller's real estate agent I was told to call the seller. It has been a total nightmare with this whole deal. Now I find out after a termite letter was issued by one company stating that everything was okay (no infestation). Terminix comes and inspects and finds infestation and active termite burrows in the wood. Who is at fault here, If I had of known this I would of never purchased the house. Thanks for your reply.

Rick

[HomeGuru]

You should have not closed until verification of repair work was made.

I realize that I made a drastic error when I closed before inspection; however, the house was inspected for termites prior to closing by my inspector and by the seller's inspector. Neither reported termite infestation (either previous or active). Now an impartial termite inspector has reported that there was previous infestation and now has active infestation. Do we not have any legal recourse as far as the house having termites and structural damage due to termites?

[faithandhope]

The reason your home inspector did not mention termites is because he can't. He can't even say the word in any shape or form unless he has a wood destroying insect license and that is not what he is there for. I would contact the original termite company who did the original inspection, explain the problem and that it has been verified by a second company and have them come re-inspect and assess the damage. A company worth their salt would treat and not charge and might repair damage. Secondly, most inspectors need a few days to 2 weeks notice in scheduling a re-inspect or inspection. If he could not get back out before closing with sufficiant notice your agent should have had the title company hold an amount for repairs in escrow. It's very common, done all the time, and the buyers have recourse in case repairs aren't made. It's done for builders too. Good Luck.

thank you for your response. Your right, though I asked him during the inspection he didn't comment on it at all. Question the original infestation report says none found prior or present. I have called the same company back for a reinspection. The seller used them for the infestation report for the closing, fortunately the inspector that will be doing the inspection today is not the same one that did it 1 1/2 months ago. Now my question is this: Since Terminix found the problem and they would not treat the house because wood is in bedded in the ground supporting the structure of the house. This is another thing I was not told. If this same company reports that there is indeed a problem and I need to get repairs. Do I then show them the report they provide a month and a half ago that states nothing found. What do I do if they refuse to honor the first report? This house was purchase through FHA. The FHA inspector should of caught the problem don't you think? If I would of known the condition of the structure I would of not purchased the house. My original question is if the company does not honor the first inspection, pending they report the same as Terminix did, what legal course do I have. Thanks

Rick

[HomeGuru]

Terminex will not treat because they cannot provide a waranty due to the conducive conditions (wood in contact or buried in soil).

You have recourse against the termite inspector for the Seller as well as the FHA appraiser. You may even have a casue of action against the Seller and the Real estate agent for the Seller.
You now need to mitigate damages. Take photos, hire a licensed contractor to do the remedial work and have the termite company treat.
Sounds like you have a big ground termite problem that needs to be resolved like yesterday.

Thank You for your replies. The original company that came out for the seller did not show up for a re-inspection. I guess he figured out what I was up too. What to do now? You mentioned that I might have recourse against the company that issued the orignal infestation letter. Also the realestate agent for the seller and the FHA inspector. What is really funny is that all these were working for the real estate agent for the seller or may I add he contacted them for the job. Let me know since this is my first experience in buying a house and it has trully been a nightmare for me. What to do? Well the facts are that there are termites infesting the home. I need to get this fixed before any more damage is caused. Course of action. I get Terminix back out here to assess the damage and get a written repair work order from their repairmen ( I was told they have their own ). Do I then take this to who? How, what can I do to recoop my expenses. How do I legally persue the real estate agent for damages. It is obvious that this was a bad deal and I was the stuckee. Would I notify the real estate commission, what can they do? What about the FHA inspector how does he fall in this and the FHA loan. I am sure that if they knew this then the loan would of not of gone through. I contact Ga department of Argriculture consumer affairs. They are sending an inspector for this area to inspect the damages. But it will take about 30 days. They mentioned that the infestation letter is good for only 90 days from the company for him to be held for damages. Though they are only responsible to treat the problem not fix the structure of the house that has been damaged. I trully need help. My first experience at this and it is really taking its toll. What are my legal avenues.

[HomeGuru]

You need to hire a real estate attorney that specializes in seller disclosure cases.
The attorney will write a letter to the parties with the hope of negotiation and resolution.
If no progress, then a Complaint will be filed naming all those characters I mentioned as Defendants.
With respect to the FHA appraiser, read the Homebuyers Protection Act
[url]http://www.hud.gov[/url]
Keep us posted.

Thanks for the advice. I will look for a lawyer today. The home inspector is finally coming back for a re-look after 50 days. The company that the seller's real estate agent hired says it is finished with the repairs (which I know they are not). I plan on crawling under the house with him and see for myself and take some digital pictures. Thanks for all your advice and I will definately keep you posted on all the upcoming events. I am sure their will be a lot.

Thanks again,

Rick

All I wanted was to buy a house and settle down and look what's happened.

[HomeGuru]

Please do keep us posted.
I am especially interested in following up on your claim against the FHA appraiser. File a formal complaint with HUD and demand that appraiser take a look at all the areas that he/she missed.

[faithandhope]

I'm so sorry. Most home transactions aren't like this. One bad apple an all that. Most Professional and termite licensed inspectors pride themselves on maintaining an ethical and reputable buiness. Our word and reputation is our return business, but there are also a lot of termite and professional inspectors I will not recommend for this very reason. Buying and selling a house is stressful enough so we try to make it as reassuring as possible. Pier and beam houses and older homes can be difficult to inspect if you don't know what to look for. Also, FHA appraisers do not always crawl underneath the houses, although requirements for that have recently changed. You might double check that, according to when you had your inspection performed. Was it an appraisal or inspection done by FHA? FHA appraisers and state licensed inspectors check for different items and have different standards and forms. Best of luck to you.

[Edited by faithandhope on 07-25-2001 at 11:47 AM]

Thank You all who have replied. I really appreciate all the comments they have made me feel a little better in having some kind of recourse to this mess. I will definately keep you posted on what happens.

thanks again

Rick
(retired military)

Well, The Home Inspector came by yesterday and inspected the house after the contractor hired by the seller to fix the repairs agreed on, (on the contract) had said all repairs were completed. The reapirs were not yet done. Repairs include supporting joist under the house to be replaced, heat exchange unit in Heating Unit, and some rotten wood to be replaced etc,. Which I had to pay the inspector again to come out and re-inspect (total of 3 times, now). But this is the minor stuff. Terminix came back out and did an inspection and provided me a graph of the house and a lot of bad news. Termites have been a previous infestation problem and are currently active. They even introduced me to a few. The question was did the other company even come and look at the house? The current inspector found the termites on the outside of the house, on the house. They asked for the disclousre statement fprovided by the seller. It was marked as never having any problems at all. The infestation report provided by another company as having no prior or current infestation. All this is documented, I now have to decided what to do. I want out of this total deal on this house. I have an appointment with a lawyer. Question is something like this where the seller, listing agent, pest control company, and the home repair company all have defaulted in all their responsibilities......due to this I want out!.. What do you see are my options. I would of never purchased the house knowing about the termite problem. Your comments are appreciated.