Trying to Close on Home Purchase - Going Nuts!

What is the name of your state? California

TIA for your replies!

We are in escrow on a home purchase. The price is $775K. It appraised at $875. A divorce may be reason for the discount. The home was built in 1927, is in good condition and the sellers bought it two years ago.

The contract date is 6/8 and COE was 7/3... concurrent with close of sellers' purchase, but not contingent.

Disclosure Issues:
I am not exagerating when I say that the only thing they disclosed is that there is a loose banister rail and it's missing some window screens. The house is 76 years old... that is impossible... as was proven by our inspection. Nothing horrible, but definitely things you would expect with a 76 year old home. We tried very hard to prod them to be more forthcoming, but to no avail!

Questions 1:
When it comes to their disclosures do we have any recourse down the road? I've been told that it almost gets viewed as an as-is sale, because it is our fault for accepting their lame disclosures and our inspections brought out quite a bit. Is this true?

Termite and Foot Dragging Issues:
Per the contract, sellers are responsible for all Section 1 Termite. Sellers' termite report was due to us by 6/15. On 6/12 we saw the sellers were dragging their feet on ordering it, so we ordered our own. Again, nothing horrible. About $13,000 in work. Sellers refused to use our report. Finally provided their report on 6/24... 9 days after the required date. Basically the same damage showed up!

Sellers say they will be starting termite work on July 1st... one week after receiving their report. We now have an estimated close date of “maybe the 7th or 8th,” but it has been changing every day. Their agent is non-communicative and is unwilling to commit to a close date. His broker won’t get involved!

These people are driving us crazy! When they signed a 25 day escrow, it was assumed that they, including their agent, knew that they would have to move fast on everything. They didn't even order their termite until after it was do to us.

Questions2:
Short of “going legal” on them, how can we push them to stop dragging their feet, give us a firm closing date and abide by it? Do we have any leverage to push them on anything, or do we literally have to sit and wait for them to say “OK tomorrow we’ll close.”

Add to this that we are leaving the country on the 11th of July, something we've told the sellers from the start, and we need to colse before or postpone till after. The sellers know this, but it never made it into the purchase agreement because we had a July 3 close and didn't think it would be an issue!

We can't even order a moving van yet as we don't know what day well be moving!!! How do we get some control of this situation???

Thank you!!!

[HomeGuru]

Originally posted by CADiving
What is the name of your state? California

TIA for your replies!

We are in escrow on a home purchase. The price is $775K. It appraised at $875. A divorce may be reason for the discount. The home was built in 1927, is in good condition and the sellers bought it two years ago.

The contract date is 6/8 and COE was 7/3... concurrent with close of sellers' purchase, but not contingent.

Disclosure Issues:
I am not exagerating when I say that the only thing they disclosed is that there is a loose banister rail and it's missing some window screens. The house is 76 years old... that is impossible... as was proven by our inspection. Nothing horrible, but definitely things you would expect with a 76 year old home. We tried very hard to prod them to be more forthcoming, but to no avail!

Questions 1:
When it comes to their disclosures do we have any recourse down the road? I've been told that it almost gets viewed as an as-is sale, because it is our fault for accepting their lame disclosures and our inspections brought out quite a bit. Is this true?

Termite and Foot Dragging Issues:
Per the contract, sellers are responsible for all Section 1 Termite. Sellers' termite report was due to us by 6/15. On 6/12 we saw the sellers were dragging their feet on ordering it, so we ordered our own. Again, nothing horrible. About $13,000 in work. Sellers refused to use our report. Finally provided their report on 6/24... 9 days after the required date. Basically the same damage showed up!

Sellers say they will be starting termite work on July 1st... one week after receiving their report. We now have an estimated close date of “maybe the 7th or 8th,” but it has been changing every day. Their agent is non-communicative and is unwilling to commit to a close date. His broker won’t get involved!

These people are driving us crazy! When they signed a 25 day escrow, it was assumed that they, including their agent, knew that they would have to move fast on everything. They didn't even order their termite until after it was do to us.

Questions2:
Short of “going legal” on them, how can we push them to stop dragging their feet, give us a firm closing date and abide by it? Do we have any leverage to push them on anything, or do we literally have to sit and wait for them to say “OK tomorrow we’ll close.”

Add to this that we are leaving the country on the 11th of July, something we've told the sellers from the start, and we need to colse before or postpone till after. The sellers know this, but it never made it into the purchase agreement because we had a July 3 close and didn't think it would be an issue!

We can't even order a moving van yet as we don't know what day well be moving!!! How do we get some control of this situation???

Thank you!!!

**A: and where is your real estate agent in this out of control mess?

Our agent has been regularly calling the listing agent without returned calles. he called the listing agent's broker who stood by her agent!

I'm not sure there is much of anything our agent can do, or could have done, to push the sellers to move along faster!

It was our agent who found an incredible inspector who specializes in inspections for construction defects litigation when we realized that the disclosures were nil.

It was that inspector and our agent in tandem who suggested we get our own termite when it was clear that the sellers would not be anywhere close on the timeline.

It is quite probable that the sellers have backup offers higher than ours and that their game was to see if they could drive us out. Threatening to cancel would have only played into their hand!

Unfortunately, the standard purchase agreement has no teeth in it in terms of penalties for ignoring the contract!

If you have any suggestions as to what my agent can do, or could have done, to force the other side to abide by the timeline, I'm all ears!

Is there anything our agent can do at this point to push this along if teh sellers are unwilling to follow the timeline?

[HomeGuru]

[quote]Originally posted by CADiving
[b]What is the name of your state? California

TIA for your replies!

We are in escrow on a home purchase. The price is $775K. It appraised at $875. A divorce may be reason for the discount. The home was built in 1927, is in good condition and the sellers bought it two years ago.

The contract date is 6/8 and COE was 7/3... concurrent with close of sellers' purchase, but not contingent.

Disclosure Issues:
I am not exagerating when I say that the only thing they disclosed is that there is a loose banister rail and it's missing some window screens. The house is 76 years old... that is impossible... as was proven by our inspection. Nothing horrible, but definitely things you would expect with a 76 year old home. We tried very hard to prod them to be more forthcoming, but to no avail!

Questions 1:
When it comes to their disclosures do we have any recourse down the road? I've been told that it almost gets viewed as an as-is sale, because it is our fault for accepting their lame disclosures and our inspections brought out quite a bit. Is this true?

**A: in general yes, especially if the specific condition was not disclosed by the Seller but noted on your home inspection report. Reason being, you were aware of the condition prior to closing and did no further investigation or asked the Seller to do repairs.
***********

Termite and Foot Dragging Issues:
Per the contract, sellers are responsible for all Section 1 Termite. Sellers' termite report was due to us by 6/15. On 6/12 we saw the sellers were dragging their feet on ordering it, so we ordered our own. Again, nothing horrible. About $13,000 in work. Sellers refused to use our report. Finally provided their report on 6/24... 9 days after the required date. Basically the same damage showed up!

**A: then you have options of terminating the contract, requesting that repairs be completed, negotiating a lower sales price etc.
********
Sellers say they will be starting termite work on July 1st... one week after receiving their report. We now have an estimated close date of “maybe the 7th or 8th,” but it has been changing every day. Their agent is non-communicative and is unwilling to commit to a close date. His broker won’t get involved!

**A: then time to hire a real estate attorney.
******
These people are driving us crazy! When they signed a 25 day escrow, it was assumed that they, including their agent, knew that they would have to move fast on everything. They didn't even order their termite until after it was do to us.

**A: ok, got it already.
****
Questions2:
Short of “going legal” on them, how can we push them to stop dragging their feet, give us a firm closing date and abide by it? Do we have any leverage to push them on anything, or do we literally have to sit and wait for them to say “OK tomorrow we’ll close.”

**A: read your contract for the timeline.
********
Add to this that we are leaving the country on the 11th of July, something we've told the sellers from the start, and we need to colse before or postpone till after. The sellers know this, but it never made it into the purchase agreement because we had a July 3 close and didn't think it would be an issue!
**A: then you made a huge mistake.
******

We can't even order a moving van yet as we don't know what day well be moving!!! How do we get some control of this situation???

Thank you!!!

**A: you need to" get legal".

Thank you HomeGuru!

We are becoming more and more aware that going legal is fast becoming our only option if we want the house... and we do!

Given the appraised value of $875K vs. the selling price of $775K and ASSUMING THE APPRAISAL IS ACCURATE (I believe it's actually conservative ($270/sq.ft. in a $350-$400/sq.ft. market) I would like to add the following questions:

a) are damages an issue, or is it just a specific performance case?

i) my gut tells me we should be seeking performance only, not damages!

ii) if damages are an issue, do they just draw out litigation?

b) Assuming the $100k spread, do you think litigation is a viable option? My wife is six months pregnant and we have two small children. How would your advise your closest family member in the same situation?

c) Assuming litigation, what sort of time-line are we looking at? Is this a couple months in court for specific performance, or are we looking at much longer?

d) As stated in original post, we believe the sellers are getting a divorce and it's probably not amicable, from a strategy standpoint, do you believe they would have the fortitude draw litigation out? Is this a case you feel a) slightly confident, b) confident, or 3) very confident about taking?

e) What about legal fees. Do we stand the chance of blowing the $100 spread between value and price on fees? Do you think we'd get them back?

Sorry for the barage of questions! We are very concerned that "getting legal" will get us what we want, but at a huge cost!

Thank you again!

[HomeGuru]

Originally posted by CADiving
Thank you HomeGuru!

We are becoming more and more aware that going legal is fast becoming our only option if we want the house... and we do!

Given the appraised value of $875K vs. the selling price of $775K and ASSUMING THE APPRAISAL IS ACCURATE (I believe it's actually conservative ($270/sq.ft. in a $350-$400/sq.ft. market) I would like to add the following questions:

a) are damages an issue, or is it just a specific performance case?

**A: I don't know since you have not proven that there are any damages.
******

i) my gut tells me we should be seeking performance only, not damages!

**A: your attorney needs to review your contract.
******

ii) if damages are an issue, do they just draw out litigation?

**A: see above.
********
b) Assuming the $100k spread, do you think litigation is a viable option? My wife is six months pregnant and we have two small children. How would your advise your closest family member in the same situation?

**A: if you want to buy the property, then you must either litigate or go inot ADR.
******
c) Assuming litigation, what sort of time-line are we looking at? Is this a couple months in court for specific performance, or are we looking at much longer?

**A: ask your attorney,
******
d) As stated in original post, we believe the sellers are getting a divorce and it's probably not amicable, from a strategy standpoint, do you believe they would have the fortitude draw litigation out? Is this a case you feel a) slightly confident, b) confident, or 3) very confident about taking?

**A: no comment.
*******

e) What about legal fees. Do we stand the chance of blowing the $100 spread between value and price on fees? Do you think we'd get them back?

**A: no and yes if you prevail and the court approves.
*****
Sorry for the barage of questions! We are very concerned that "getting legal" will get us what we want, but at a huge cost!

Thank you again!

**A: an attorney needs to review your contract and the history and advise you accordingly.

Thanks HomeGuru!

I appreciate your taking the time to respond!

[HomeGuru]

Originally posted by CADiving
Thanks HomeGuru!

I appreciate your taking the time to respond!

**A: you are welcome and good luck to you.