Fussy Addendum

What is the name of your state? Virginia

I recently purchase a residential real state (home). The original price was $170,000, but because the appraisal came up higher, we added an addendum changing the price to $175,000 with the seller contributing $5,000 toward my closing cost, points, prepaid, etc. The problem is that they only applied $3,400 and not the full $5,000. After looking closely to the Addendum it says that the seller will contribute up to $5,000. I want my $1,600 back, what can I do? I already send the seller a letter about this matter, but I have not gotten a reply.

[HomeGuru]

Originally posted by jliborio
What is the name of your state? Virginia

I recently purchase a residential real state (home). The original price was $170,000, but because the appraisal came up higher, we added an addendum changing the price to $175,000 with the seller contributing $5,000 toward my closing cost, points, prepaid, etc. The problem is that they only applied $3,400 and not the full $5,000. After looking closely to the Addendum it says that the seller will contribute up to $5,000. I want my $1,600 back, what can I do? I already send the seller a letter about this matter, but I have not gotten a reply.

**A: you are not entitled to more than the actual amount of the closing costs etc. if the wording stated "up to".
Where is your Realtor and what did he/she say to you when you asked for the difference?

The transaction was for sale by owner, no Realtors involved. The Closing Agent told me that since they were not able to apply the whole $5,000, the difference end up in the seller funds. I asked him about my course of action, but he told me that I must work it over with the seller. The seller moved to another state.

[HomeGuru]

Originally posted by jliborio
The transaction was for sale by owner, no Realtors involved. The Closing Agent told me that since they were not able to apply the whole $5,000, the difference end up in the seller funds. I asked him about my course of action, but he told me that I must work it over with the seller. The seller moved to another state.

**A: and there you have it folks. Another screwed Buyer on a fsbo. Next time use a Realtor. It may help.

Originally posted by HomeGuru
**A: and there you have it folks. Another screwed Buyer on a fsbo. Next time use a Realtor. It may help.

I was hoping for a more creative solution. Because if I go with your line of thinking, I ended up ahead, since the commission on a $170,000 here for a Buyers Realtor is 3% or $5,100 a total saving of $3,500. However, that is not my point. I hope that someone else out there have a better solution.

I was hoping for a more creative solution. Because if I go with your line of thinking, I ended up ahead, since the commission on a $170,000 here for a Buyers Realtor is 3% or $5,100 a total saving of $3,500. However, that is not my point. I hope that someone else out there have a better solution.

Sure do. Invite the seller over for a house warming party, serve a little (cheap) cavier, shrimp, sushi and other assorted dishes and just before they are ready to do hand them a bill for $1,600.

"Oh, you forgot to look at the invitation? See, right there on the bottom in small print ...'This event is $1,600 a plate', so sorry. the cashier will take checks".

[nextwife]

You and seller evidentally agreed to closing credits "up to $5000"? Yes? Not to exceed $5000? The contract did NOT state that seller would provide a credit "in the amount of $5000"?

If so, they are not in breach of contract and you have nothing to collect. They provided the credit in accordance with the offer- based on what I believe you are saying.

[HomeGuru]

Originally posted by jliborio
I was hoping for a more creative solution. Because if I go with your line of thinking, I ended up ahead, since the commission on a $170,000 here for a Buyers Realtor is 3% or $5,100 a total saving of $3,500. However, that is not my point. I hope that someone else out there have a better solution.

**A: ok, so take the $3500 savings and deduct costs to possibly correct/complete encroachments or title issues, boundary survey, home inspection, environmental and pest inspections and defects found, building and zoning code violations, legal costs****************************

[annefan]

The commission for the buyer's realtor *usually* comes out of the seller's entire commission in which the SELLER usually pays. Therefore, I don't think you saved a blessed penny in commissions.

Originally posted by annefan
The commission for the buyer's realtor *usually* comes out of the seller's entire commission in which the SELLER usually pays. Therefore, I don't think you saved a blessed penny in commissions.

Good point, you are right!!! Any other suggestions? Its looks like you are paying attention to details, unlike me when I signed the addendum. I’m looking for someone to tell me something to the effect that in contract law, when a contract have a word that doesn’t portrait the intention of the contract, it can be changed or argued to get what it should have said.

[annefan]

If your contract states: "Seller will pay UP TO..." then it means exactly that. They could have conceded 1 penny in Seller Assist on the HUD-1 and still would have fulfilled their obligation to the wording on that addendum you signed.

I don't think you have a case to go after anyone for this. The only benefit you could glean would be to understand that contract language is meant to be specific for a reason...situations like this. Bottom line is that your language was very open ended (for the Seller's benefit) when it was worded with "up to".

[annefan]

Contracts are not legally binding by the intentions of the creator of the language, but the specific language it contains. Sorry.

No, the contract will be interpreted by what was actually in writing.

Even if the seller knew your intent and knew you screwed the wording up, they still get to keep the money.

Chalk it up as a lesson learned and move on.

And then tell all your friends why they should use a good Realtor!

[HomeGuru]

Originally posted by jliborio
Good point, you are right!!! Any other suggestions? Its looks like you are paying attention to details, unlike me when I signed the addendum. I’m looking for someone to tell me something to the effect that in contract law, when a contract have a word that doesn’t portrait the intention of the contract, it can be changed or argued to get what it should have said.

**A: you are not going to find anyone to tell you that,

awwww come on HG, I'm sure SOMEONE here will be happy to tell him just what he wants to hear....

I can think of a few idiots right off the bat