Posted 2.6.13 @ 12:40
It’s not terribly uncommon to ask for certain repairs to get done BEFORE the deal is closed (especially when it’s winter) but if you’re not absolutely clear it may not go well. Everyone tries to make sure there are contingencies in their purchase contract for real estate (Oakville homes for sale or otherwise)… but what happens when things go wrong? In this 987th (or maybe the 5th) installment of “Why You Should Hire Us”, we’re going to talk about how you could make a $46,000 mistake if you’re not careful.
A Tale of Rusty Pipes
Back in 2003 a woman named Janet found a great home she wanted to buy out in Kawartha Lakes for $174,000. She had until Halloween on that year to close the home, but the contract was later amended because the seller needed more time to do certain repairs including an oil tank, new pipe installation, etc. Janet went back to the house with her inspector on October 14th, and her inspector told her that some of the repairs hadn’t been completed. Janet understandably told the seller that if these things weren’t fixed by the close date she’d walk on the deal.
Buyer Walks Away
The seller wanted to get the home sold, so they offered Janet $1,000 off the price to get the deal rolling. Janet understandably says no, she doesn’t want to buy a home that has problems. Janet walks away, and the seller has to spend money trying to find another buy and is able to sell the home for $46,000 less than Janet agreed to pay for the property at the beginning of the deal. The seller is now legally able to sue Janet for the $46,000 they lost out on by having to accept another offer.
Seller Sues First Buyer for $46,000
It took 2 years but in 2005 the seller successfully sued Janet and won for the difference. The judge decided that since the seller had made MOST of the repairs to the property she had no legal right to refuse to close. She said that the repairs would have cost her too much on top of the purchase price to make the deal go through, but wasn’t able to show proof that the repairs would cost x amount. It fell to the seller.
Seller Wins Because Contract Wasn’t Solid
When you buy a home it’s important to talk to not only us but to a real estate attorney or lawyer. You just can’t nail down all the contingencies on your own. You may not just end up with a home that’s expensive to repair, but ending up without a home and an expensive lawsuit is not a fun situation to end up in.
Don’t be Janet
If you want to buy Oakville real estate, let us help! We’re experienced Oakville realtors that can help you through every step of the process and help you know when it’s time to put a bid in. Don’t end up like Janet, don’t make a $46,000 mistake!