dragging their feet

We have purchased a new home (in Missouri) and in the sales contract clearly indicated it was a VA loan. After everyone signed the agreement (us, the builder, and the Real Estate Company), the mortgage company sent a request for an appraisal and requested the contractor's VA builder number. As it turned out, he was not a registered builder.

The realtor came back wanting us to pay the $500 registration fee for the construction company to become a VA builder + another $1000 for the purchase of a 10 year warranty required by the VA. We were offered an alternative: to pursue conventional financing (which would have cost us for Private Mortgage Insurance and a rate increase of more than 1/2 % from the rate we locked in). We refused and pointed out that it was not the builders fault, and certainly not ours. Our contention was that the Realtor, as the professional, should have known the requirements upfront and covered it at the time the VA provision on the sales contract became known, and thus should be responsible for the fees.

In frustration, we finally told them that we would turn it over to our attorney and do whatever he told us to do.

They called us that evening and told us the contractor had agreed to pay the required fees. This is a brand new home, still under construction. Since that time, all construction has stopped. The "For Sale" realtor sign remains on the property without the customary "under contract" sign posted. They told us when we signed the agreement that they had a "backup" offer from someone else, but we got in first. I originally thought that to be a sales tactic. We have been told that the builder has applied to the VA for his registration. The Realtor is no longer keeping us updated as to the progress of the registration, paperwork, etc. and seems to be short and anxious not to speak to us when we call for an update.

We are scheduled to close on November 16. Our mortgage company has sent a commitment letter to the realtor, subject to the appraisal, demonstrating that we have met all the requirements.

I suspect that they may be dragging their feet, waiting for the contract to expire without the conditions being met as a way to get them off the hook.

Is there anyway I can check to see if the VA has received the required documentation and is in the process of issuing the number? Is there anyway I can force the realtor to demonstrate they are progessing in good faith?

We have given notice where we presently reside. I envision us being told at the last minute that the deal cannot be completed on time and having nowhere to go. Would greatly appreciate some advice.

Thx

[HomeGuru]

1.Talk to your local HUD/VA office.
2. Talk to the principal broker or file a complaint with the State real estate licensing office. Do some research and read the Realtor Code of Ethics and State RE licensing laws.
[url]www.nar.realtor.com[/url]

Thank you for your help. I took your advice and called the local VA and the builder had completed his application and all seems to be well. I really appreciate your help

Thx

Wally

VA....Your purchase agreement is still valid until the date on the contract. There should be a clause in your contract due to financing or paper work, there should be 15 extra days?? Each state has different contracts. Take that to your attorney. I would do an extension on your closing date to cover your butt.
VA/Fha Loans do require licensed contractors to be registered with the state. An experienced contractor and Realtor who has never done a va/fha would of not known of that stipulation. Especially the 10 year warranty. We as agents learn something new everyday.
There is also a pest treatment required, who is paying for that? I would also do and addendum to the purchase agreement stating that the builder is paying for those fees so there is no misunderstanding and you can proceed with peace of mind. Make sure all parties sign. Im sorry your Realtor is not doing his/her fidicuary duties. Do you have a agency disclosure with this Realtor? What kind of agency do you have with this Realtor? Im a Licensed Realtor in the State of Michigan. Each state varies. I also sit on our Grievance board. I hope all works out.
I hope this helps..like I said each state is different. What works here might not work there. ps...the sign stays out front until sold!