Need Advice for sold home

[frogger]

What is the name of your state? KS

We sold our house about 7 months ago and are now hearing back from the buyer. They are saying through their real estate agent and themselves that they were decieved and expect us to pay up to have the basement refinished.

We had a pipe burst in the basement before selling and noted this on the disclosure. We also noted that the basement had been finished by professional contractors which is had but they were friends of my husband.

The pipe burst again recently we found out for the second time and the homeowner doesn't want to pay their deductible again to have it fixed. We were contacted by their real estate agent stating that we didn't disclose the truth on the sellers disclosure and that they want us to make it right.

Please note that on the disclosure we didn't mark that permits were pulled or anything of that sort. They have hired a contractor who is telling them that nothing is the basement is up to code (not true) and that we lied to them and they need to have the whole basement refinished.

The sellers also declined to get their own home inspection. We payed for one before we put the house on the market to make sure everything was up to snuff and they declined their own inspection used ours. They also never asked any questions about the disclosure at the time of sale.

I don't think that we have any responsibility to the owner as we told the truth to the best of our knowledge and disclosed these items on the disclosure.

We have talked to them and told them we're willing to work with them but we're not going to pay for the whole basement to be redone. Before contacting our attorney I wanted to get your opinion. I have talked to other agents and they say we have no liablity and that its the buyers issue. Can you help>

[Grandma's house]

1.)Were your "friends" that you claim were "contractors" really legal contractor's because some states do not require licensing but DO require being bonded and insured to pull permits per county too.

If so...then I concur with your other agents that it is not your liability however I believe is your friends liability to correct the obvious shotty work they did. I can't say it enough on here. Don't loan money to friends, co sign for friends and don't hire friends unless they truly know what they are doing and YOU are smart enough to know what they are doing.

As for permits to finish the basement? They do exist right? ALSO...HUGE...how much value to the finished basement was placed by the appraiser when he derived at the total value matching the sales price? This if you push too hard...is the key really for the buyers...and they could sue you for the difference...they apparently do not know this. Shhhh

If in fact...there were no permits and now need to get them, "after the fact" (and ALL the work does not have to be redone, THAT IS NOT THE CASE BTW and OF COURSE this contractor that wants the biz to do ALL over again, would tell the new buyers this b.s.) You CAN get permits after the fact with some minor things that may need to get torn out such as the exposure of HOW your plumming fixtures that were OBVIOUSLY done wrong. Fix it...or in cases the beam in the walls were not up to code etc...they would with a "scope" can find the beams, tear out a portion of the wall if they must...things like this.

Reality... it is YOUR responsiblity to repair shotty workmanship that theeprior "friends" of yours did if they did it wrong.

You need to find out who in your area governs the permits and get HIM out there to give permits. THEN he WILL tear out what areas he chooses to have redone to get permits AND to have redone unless of course there ARE permits then in that case YOU do need to pony up the bad work of the plumbing issue.
Get your "friends" to do it right or someone else. You NEED to hire a licensed contractor on YOUR behalf to give the estimate to get it done right. NOT theirs that says to do the whole thing over again...

[las365]

File a claim about the buyer's accusations with the insurance carrier with whom you had your homeowners insurance on the house at the time you sold it. Provide the insurance company with the disclosure that you gave to the buyer.

You may also wish to seek a consultation with an attorney.

Do not hire contractors or do anything to indicate you are accepting liablity.

We have talked to them and told them we're willing to work with them but we're not going to pay for the whole basement to be redone.

Whoops, too late.

[Grandma's house]

Originally Posted by las365

Do not hire contractors or do anything to indicate you are accepting liablity. Whoops, too late.

Yep...he also APPEARS to want to know if he is responsible and further if his friends did shotty work.
THEY DID.

Yes...you may need an atty. but by the time you fight all this in court...you may as well clear your contience (sp?) and find out if and what IS your liability. You know...Your friends know too.
Come on...2 time in 7 mos. ????

Now the BIG question of the day is...WHAT damage did the water do to the rest of the work???

[las365]

The word is "shoddy," not shotty.

Your advice is poor, in my opinion.

[frogger]

The pipe burst while we lived in the home also and we paid service master to have the basement fixed. The pipe that is bursting is part of the original plumming in the home and at the time it burst we had a shut off valve installed - the buyers didn't ask about this even though noted on the sellers disclosure.

We brought in outside contractors this week and they estimated the price to fix things at approximately $2000, which we're totally willing to work with the buyers and even redue the work that was done incorrectly. They seem to think they can get alot more money than this out of the work. not sure at this point.

We have also pulled comps in the area for houses sold without a finished basement and the costs are like $3000 less than what the buyers purchased the house for.

Permits weren't pulled and this too was noted on the sellers disclosure.

Advice?

[Grandma's house]

Do nothing (acknowledge nothing.) as was advised earlier by someone else...for now..until you feel you need an atty. (they get one first...and are suing) etc...talk to no one and lay low.

No permits. However they did not get an inspection either and SHOULD HAVE and this realtor shouled have advised them to but of course did not cuz he would lose his sale. (remember this too) where is HIS advise? We as the lender require a signed form stating they KNOW THE CAN GET ONE and opted out. Where is the realtors??? THE ONE ADVISING THEM TO GET ONE?

[perroloco2]

Originally Posted by frogger

Advice?

Wait patiently for LAS to reply.

[las365]

Well, thanks, perroloco2, that's a big compliment, but I'm afraid I've already given this my best shot. I'm not a lawyer or an expert. The little I know is because the firm I work for has represented both buyers and sellers in cases arising from disclosure disputes.

[Grandma's house]

Great...now did they not have to ADVICE him to get an inspection??? Now I am licensed in ALL states...

Do you know the answer?

[perroloco2]

I sincerely do not understand your question.

[seniorjudge]

Originally Posted by Grandma's house

Great...now did they not have to ADVICE him to get an inspection??? Now I am licensed in ALL states...

Do you know the answer?

...huh...

[anteater]

Great...now did they not have to ADVICE him to get an inspection??? Now I am licensed in ALL states...

Do you know the answer?

Originally Posted by seniorjudge

...huh...

Apparently, one does need to spell correctly or write a coherent sentence to be "..licensed in ALL states."

[Grandma's house]

oh sorry Las 365 I had to leave in a hurry...in regards to your post: Quote: because the firm I work for has represented both buyers and sellers in cases arising from disclosure disputes.
I was asking if you knew that this disclosure is to get signed by the buyer advising/recommending to them to get an inspection? Also signing the opting out of not getting one. That's all...Since you have to deal with this all the time.

A lot of realtors avoid this little "disclosure" document. We as the lender get them ourselves as well...so if you ever run into such a dispute, remind the buyer that likely the lender gave them one UPFRONT and prior to close.