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Old 09-22-2006, 12:26 AM
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Join Date: Sep 2006
Posts: 1
Question

Homeowners claim


What is the name of your state? Michigan

I know this will be a bit long, I apologize...

The day before closing, a tree branch from my neighbor's yard fell onto my pool slide. I was told I had to make an insurance claim and provide the info to the realtor in order for the buyers to not back out of the deal. This was done. I do not live in the state the house was being sold in so I was told to sign a Power of Attorney. At closing, the buyers insisted an addendum was added for the homeowners claim. Instead of stating that I would be responsible for the repairs to the pool slide and the tree branch removal, for some reason it was decided by the real estate agents that the addendum would be worded that any settlement I was granted as part of the insurance claim had to be signed over to the buyers. The house is very old, as is the slide that was damaged. I agree it is my responsibility to return the house to the condition the buyers assumed they were buying it in. The insurance check reflected the money to replace the old slide with no water hook up with a state of the art, brand new slide. I found a used slide, in good condition, priced that, the installation, the tree removal and a new pool cover and sent approx $2100.00 to the new owners of my home. They will not cash the check and are now threatening to "prosecute" me since I have withheld some of my insurance money. I told the real estate agent I would be more than happy to arrange for the slide to be installed and take care of the bill. Apparently, the people just want the money.
Okay - finally my question - Do I actually owe these people my insurance check, or just to restore the pool/slide area to what it was when the offer was made? And does my real estate agent have the authority to use the POA to word something in a way that there is no way I would have signed it? No one called me or conferred with me when the issue arose at closing. The POA is also not notarized, if that matters.What is the name of your state?What is the name of your state?
  #2  
Old 09-22-2006, 09:02 AM
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Join Date: Mar 2006
Posts: 6,673
While I have to make some assumptions, yes, you owe them the insurance check. At best it is a breach of contract. While they can't "prosecute" you for a contractual dispute, they can sue you. Look over your paperwork as many have a clause giving the winner of any suit regarding the sale attorney's fees.

I'm not sure what your argument is as to why you wouldn't be required to follow the addendum. I assume you want the sale to go through. If the POA isn't valid for the addendum, why would you think it valid for the sale?

With more facts, you may have some issues, but I'm not going to speculate on what they could be.

Last edited by tranquility; 09-22-2006 at 09:04 AM.
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