<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Will777:
I recently purchased a home AS IS which doesn't free a seller from disclosing "defects." It was purchased with no contingency but the broker supposed to provide me with a list of inspector. My broker review the report and said it was "minor" on the pitched floor. So, no inspection was done. Basically, we did not spend more than 2 seconds in the area. It is hard to believe that the inspector did not mention the door and the door frame slanted. Neither the seller's broker mentioned it. I don't know how I could get hold of previos disclosure statement and/or contract to prove it that the seller was aware of it. I got hold of a tenant. Only if they could testify that the owner was aware of it. The inspector said it was in the "acceptable guideline" and won't have problem selling it.
I don't know. I can't be spending 10 to 40K on attorney fees and lose the case. A judge will ask why didn't I check it out before escrow closed. Well, first time buyer stupidity. When I ask my broker that the home too expensive, she kept saying it's a long term investment.In retrospect,she wanted the escrow to close!!<HR></BLOCKQUOTE>
You have raised some interesting real estate issues and Tracey has provided valuable points. I hope I have understood your situation correctly. First and foremost to all the readers out there: always get a home inspection completed when you purchase a home no matter what. And always attend the home inspection and talk to the inspector. The real estate agents have no business making a decision for a Buyer and/or influencing a Buyer not to get a home inspection. In fact it is a real estate agent's fiduciary duty and standard of care to highly recommend that the Buyer get a home inspection and to understand the results. Also the real estate agent should not "play" home inspector, contractor or engineer by looking at a list of defects and making a judgement call as to the severity of the defect and if minor or major. The agent may convey the contents of the report but should defer to experts for further review. What if the pitched floor and the slanted door and door frame were indicative and a result of a major defect such as bad soil conditions, improperly framed floor or cracks in the concrete slab foundation, foundation problems due to drainage conditions, structural termite damage etc? What if the inspector missed these items? What if the old and outdated report that was referenced by your agent was completed by an unqualified home inspector new in the business? If this home inspection report was the same report that the Seller got when they bought the home, it should not be used as a Buyer's inspection report for many reasons. Some of these reasons are; 1. a long passage of time may have elapsed from when the Seller bought and when you are buying and home conditions could very well change over time 2. a Buyer was not a party to the home inspection contract and therefore has no recourse against the home inspector ( the home inspector has limited third party liability) and 3. the Buyer had no opportunity to qualify and select the inspector, attend the inspection and ask the inspector questions.
If the defects that you have mentioned are in fact minor, then there should be no big problem. But it is my opinion that both the Seller and the Seller's real estate agent should have disclosed the conditions if they were aware of them. Are both the pitched floor and the door/frame defects related and caused by the same problem or are they a result of 2 entirely separate problems? Why are these conditions like that and what is the cause? How old is the home and were these conditions there when the home was built new? You are correct about the as-is sale and the Sellers' disclosure still being required. Remember, you as the Buyer can ask and should ask the Seller any questions that you want about the condition of the property. It is your right to ask for additional information specifically about these conditions that you are so concerned about. And your real estate agent should fully support you in this due diligence.
Unless the Seller provides the documents to you, do not waste your time trying to get copies of the disclosure statement and contract. There are ways to get these docs through discovery usually only when there is litigation. Getting the previous tenants to testify is a good idea but if the conditions are minor, why go through all that trouble. You should request from the home inspector that said "it is in an acceptable guideline and you should have no problem selling" to put it in writing. Ask the inspector what guideline is being used as reference. Is it the Standards of Practice of the American Society of Home Inspectors ( ASHI), new construcion tolerance guidelines set forth by building and design associations such as NAHB, AIA or CSI, generally acceptable construction industry standard or his own made up guideline? How does this inspector know that you will not have a problem selling the home. Is this person a psychic or fortune teller?
Your own real estate agent should not be telling you your the home purchase "is a long term investment". Although the purchase of real estate is a known long term investment as compared to say day trading stocks but there may be problems with representation. A securities license is required if the agent is going to be talking "investment" or make any representations as to what you could sell the property for in the future, the future potential, how much the property will be worth in the future etc. If you say the home is too expensive, your agent should be asking by what do you mean. Expensive due to the purchase price being higher than you would like, more downpayment required or expensive because you are paying over the true market value. A market analysis completed by your real estate agent would indicate the value of the subject home compared with other similar type homes ( comps) in the neighborhood.
Ask as many questions as you need to in order to feel comfortable with the condition of the home and the entire home purchase.
