Realtor saying I have to buy the house

[grabowski68]

What is the name of your state (only U.S. law)? Ohio

Recently made an offer on a home, it was accepted. Sellers disclosure statement said nothing was wrong with the home and I have a contingency plan for a home inspection. I attended the home inspection and discovered the basement leaked(it was raining that day), Basement steps had shifted where water is coming in and need replaced, 2 windows upstairs won't close. The basement floor and walls had been freshly painted but you can see where the water had been. The inspector made light of these things, it was the realtors recommended inspector (I know what was I thinking?) I personally want nothing to do with a home built in 1940 that possibly has had a leaking basement for 75 years. I relayed my concerns to my realtor and told him I no longer want to purchase the house. His response was unless the inspector gives a bad report, I am bound to the contract. Later said he talked to the inspector and that he said the house is fine. I further conveyed my desire to not buy this house but my agent would have none of it and basically said " it inspected good, you are bound". Can I possibly be made to buy this shifting house? No money has been exchanged and all I have signed is an offer sheet, no loan papers.

 

[LdiJ]

What is the name of your state (only U.S. law)? Ohio

Recently made an offer on a home, it was accepted. Sellers disclosure statement said nothing was wrong with the home and I have a contingency plan for a home inspection. I attended the home inspection and discovered the basement leaked(it was raining that day), Basement steps had shifted where water is coming in and need replaced, 2 windows upstairs won't close. The basement floor and walls had been freshly painted but you can see where the water had been. The inspector made light of these things, it was the realtors recommended inspector (I know what was I thinking?) I personally want nothing to do with a home built in 1940 that possibly has had a leaking basement for 75 years. I relayed my concerns to my realtor and told him I no longer want to purchase the house. His response was unless the inspector gives a bad report, I am bound to the contract. Later said he talked to the inspector and that he said the house is fine. I further conveyed my desire to not buy this house but my agent would have none of it and basically said " it inspected good, you are bound". Can I possibly be made to buy this shifting house? No money has been exchanged and all I have signed is an offer sheet, no loan papers.

No, you are not bound to buy the house...and I would certainly decline to use that realtor any further...nor that inspector.

 

[I'mTheFather]

No, you are not bound to buy the house...and I would certainly decline to use that realtor any further...nor that inspector.

A contract was signed. Why wouldn't OP be bound by that contract?

 

[TigerD]

What is the name of your state (only U.S. law)? Ohio

Recently made an offer on a home, it was accepted. Sellers disclosure statement said nothing was wrong with the home and I have a contingency plan for a home inspection. I attended the home inspection and discovered the basement leaked(it was raining that day), Basement steps had shifted where water is coming in and need replaced, 2 windows upstairs won't close. The basement floor and walls had been freshly painted but you can see where the water had been. The inspector made light of these things, it was the realtors recommended inspector (I know what was I thinking?) I personally want nothing to do with a home built in 1940 that possibly has had a leaking basement for 75 years. I relayed my concerns to my realtor and told him I no longer want to purchase the house. His response was unless the inspector gives a bad report, I am bound to the contract. Later said he talked to the inspector and that he said the house is fine. I further conveyed my desire to not buy this house but my agent would have none of it and basically said " it inspected good, you are bound". Can I possibly be made to buy this shifting house? No money has been exchanged and all I have signed is an offer sheet, no loan papers.

1. Always use a buyers agent.
2. If your contract said the sale was contingent on the home inspection, submit a repair request.
2a. Get an estimate for the repair from a quality foundation company.
2b. Ask the seller to reduce the price by the amount of the repair or have the repair completed at their expense subject to your approval.

TD

 

[I'mTheFather]

What did the inspector's report say about those items?

 

[PaulMass]

all I have signed is an offer sheet

The "offer sheet" is your contract. Read it and see what your recourse is if the house "fails" inspection. You should also read it to see what the seller's recourse is if you breach the contract. Specific performance (having the court order you to go through with the sale) is generally not a seller's recourse. There may be a liquidated damages clause, but it may be unenforceable if you have put down no deposit. If there is no liquidated damages clause, the seller is likely limited to whatever actual damages he or she suffered due to your failure to go through with the purchase.

Your safest bet is to bring the offer sheet to a local attorney for a review. The review may cost you a few hundred dollars, but not hundreds of thousands.

 

[quincy]

A contract was signed. Why wouldn't OP be bound by that contract?

My gut reaction, and I actually posted it to this thread and then deleted it, was that no one can be forced to purchase a home. The reason I deleted it is that someone can, in fact, be forced to purchase a home when an offer to purchase has been made, the offer has been accepted, and all contingencies have been met (e.g., satisfactory inspection, financing obtained). The contract would be legal and binding upon the parties.

That said, courts are reluctant to force full compliance in an agreement of this sort, and although compensation to the seller can be ordered, it will generally fall far short of the full purchase price of the home.

Typically the compensation that comes with an offer to purchase real estate when the purchaser backs out of his accepted offer for any reason will be in the form of the forfeiture to the seller of the earnest deposit made by the purchaser with his offer to purchase. The fact that there was no earnest deposit made with this offer to purchase is a bit puzzling to me, but an earnest deposit is apparently not a requirement in Ohio.

In this described situation, grabowski68 could potentially hire a different inspector, if he doubts the validity of the first inspector's report. In addition, grabowski68 has not yet applied for financing and this, too, could provide an escape from the contract if financing were to fall through and obtaining satisfactory financing was one of the contingencies in the offer to purchase. The lending company, too, might wish to have their own inspection of the property prior to lending funds, especially if there is some question raised about the condition of the home.

Like I'mTheFather, I am curious about what exactly the inspector's report says about the leaks in the basement.

edit to add: Here is a link to the Ohio Association of Realtors on Basic Contract Law/Purchase Agreements (scroll down to "Sellers' Remedies"):
http://ohiorealtors.org/legal/topics/contracts/wpcontact-purchase-agreements/

 

[grabowski68]

Just got the Inspection Report. He considers the leaks minor in the basement and gives the house a good condition grade for it's age. I don't agree with the leaks being minor as it was lightly raining and was quite a bit of moisture for that. Heavy rains and I know what I'm going to have and I think after all these years it has damaged the foundation, hence windows not closing and steps shifting but I thought an inspection was for me to go over and make a decision The realtor is saying if the inspector says good I am bound.

 

[justalayman]

well, a 75 yo woman can be in good condition for their age but that doesn't mean I'm taking them down to the local mosh pit to dance in a situation where a 20 year old would fare just fine.

Either the home is in a condition making it acceptable for purchase or it isn't.

moisture, or even worse, actual water, especially evident during rain or such is rarely acceptable. If there is a dampness associated with precipitation, but an immediate issue suggests, like you suspect, if it is raining hard, it will likely be much worse.

 

[LdiJ]

A contract was signed. Why wouldn't OP be bound by that contract?

No one is ever forced to follow through on a purchase agreement to buy real estate. They may have consequences for not following through, but they are not forced to do so.

In addition, an inspector is bound to give details about a property when a purchase is contingent on those details. Its the potential buyer who gets to decide whether or not those details matter, NOT the inspector. An inspector is obligated to report that a basement leaks...the inspector does NOT get to determine that its OK that the basement leaks.

 

[I'mTheFather]

No one is ever forced to follow through on a purchase agreement to buy real estate. They may have consequences for not following through, but they are not forced to do so.

Exactly. Your previous response was much too simplistic.

 

[grabowski68]

The realtor just left a message stating that the inspector's findings prove that there is not a problem with water leaks in the basement, all basements have moisture and I will have to get a dehumidifier. Some of the other things wrong w/the house he could ask to be fixed but we only have a few days and I have to reply because if the seller does not hear from me that will signify an agreement by me that I will buy the house. What should I do here guys? Get a lawyer? Is it ok to get a regular lawyer or should it be a real estate lawyer. Should I just ignore him? Thanks for any help. I'm a first time home buyer and learning a hard lesson I guess.

 

[STEPHAN]

Why don't you do another inspection with an inspector that YOU trust?

 

[PaulMass]

The realtor just left a message stating that the inspector's findings prove that there is not a problem with water leaks in the basement, all basements have moisture and I will have to get a dehumidifier. Some of the other things wrong w/the house he could ask to be fixed but we only have a few days and I have to reply because if the seller does not hear from me that will signify an agreement by me that I will buy the house. What should I do here guys? Get a lawyer? Is it ok to get a regular lawyer or should it be a real estate lawyer. Should I just ignore him? Thanks for any help. I'm a first time home buyer and learning a hard lesson I guess.

I'm not sure what a "regular" lawyer is. Most lawyers specialize in one area or another. A real estate lawyer is probably your best bet as she would know the laws in your area and can help you without much research.

I suspect the lawyer will simply write a letter stating that the house is unacceptable due to the defects found, and that you are exercising the home inspection contingency.

 

[FarmerJ]

If your offer was worded that the home had to have a good inspection report or that the offer would be valid after inspection reports to you then WHO hired the inspector ? If you used sellers inspector use your own , a inspector doesn't get to rate the severity of leaks etc he or she reports that they found leaks / water pooling, water coming etc but they don't get to rate the severity , I too don't think you have been represented well in this process and suggest you get your own Attorney and if you have to your own inspector. I would think if your in a smaller town and you only have one or two Attorneys in town then maybe use a Attorney from the next town. Your also free to ask a attorney if they know the seller of this property or not.