Fraud

[tmw]

We recently closed on a house - part of closing included an Escrow (of the sellers funds $18k) for the construction of a garage and driveway (estimates from contractors were attachments A&B to the escrow agreement).

The construction was not finished on-time and has major defects that we would like fixed. We also found out that one of the "contractors" that submitted an estimate was actually an "employee" of the seller and not an independent contractor. Is this fraud?

Additionally, in the letter of "Disclosure," the seller states that all permits on the 2nd floor remodel will be closed out. All of the permits (electrical, plumbing, HVAC, and overall remodel) are still OPEN. We have ran into several problems with the construction already. What can we do?

Thank you for any help you can offer,

First Time Homebuyer Nightmare!

 

[HomeGuru]

Have an attorney send a demand letter to the Seller to correct the problems.

 

[tmw]

Thanks for the suggestion. We have done that already - actually, we had the bank deposit the funds to court. The seller hasn't budged. We are now trying to prepare our case, since the seller will not present a respectable offer to fix all of the issues.

Therefore, we are wondering if that was fraud and any other avenues we can use.

Thanks ~

 

[HomeGuru]

No, it is not fraud.

 

[tmw]

We would have never signed the escrow agreement if we knew the contractor was actually an employee of the seller - wouldn't that account for misconception in an attempt to have us part with our money? i.e. fraud

Thanks~