Buyers Backed Out - Can we do anything?

[GJM]

We have buyers for our townhouse, contract signed, inspection done - we fixed what they wanted us to fix. We just got our CO today and we can set the closing date. Well we find out today they don't want to buy it.

Their inspector said there is structual damage, our town inspector who has to inspect it to issue a CO said there is no damage and it is just settling. He wouldn't issue a CO if there was damage, he wouldn't give us the CO because the kitchen sink was leaking. The townhouse is 20 years old.

Can we do anything or can they just walk? Our lawyer we have isn't great -

We never sold a house - just want to hear if anyone went thru this.

 

[jenks0718]

I am a realtor and if the buyers inspector indicates structural damage they do have a means to back out of the deal. I would have your agent speak with their agent and volunteer to have another inspector come out to the house to check specifically for structural damage. An engineer would be best. This happened on one of my deals and even after the other inspector came through and said it looked like settling the buyers just werent comfortable at that point. We were still in attorney review though. Good luck

 

[The Mystery Machine]

Even if they back out, you need to have it cleared up that it is or is not structural damage.
I believe that goes in the "Rap Sheet" for your listing for the inspectors/realty companies???
Sorry can't remember the terms, we had a roof leaking issue that was a BEAR to fix when we sold our house.

My guess is that they can back out....serious damage is sited and that is enough.

 

[GJM]

It was out of attorney reveiw, they had their inspection done in Feb. The town will not issue a CO (Certificate of Occupancy) if there is anything wrong, because they would be respsonsible it something happened. I understand if they backed out when they had their inspection done, but that was a month ago and we just find out today. The town was very strict in what we had to fix before they issued our CO.

Plus it is a townhouse, if our roof was leaking they take care of that, we are not resposnible for that. I will have to call them and see if they can have someone come out.

 

[C.Ann]

If your state requires a Disclosure Statement, you will have to list "structural damage" on there when you relist the house unless you can get a definite statement in writing from a structural engineer stating otherwise.. That could cause a lot of problems and loss of many potential customers.. It would be in your best interest to get the written statement..

 

[bicker]

C of O's are a dime-a-dozen around these parts, unfortunately. I could not believe what they let our builder get away with. Definitely trust an independent inspector over a town inspector!

 

[malibuconlee]

Can I ask what kind of work you've had done that you needed to get a CO on a 20 year old property?

 

[GJM]

You need a CO anytime you are selling a property. You can't have your closing unless you have that paper.

I wish it was easy to get. We had to fix the smallest things. They were very strict!

 

[malibuconlee]

You need a CO anytime you are selling a property. You can't have your closing unless you have that paper.

I wish it was easy to get. We had to fix the smallest things. They were very strict!

Really? How interesting. Things are so different depending on where you live. I worked as an admin for construction and to me a CO is at the end of a large project.

Thanks for answering. I'd just never heard of that before.

 

[dianeschlicht]

Really? How interesting. Things are so different depending on where you live. I worked as an admin for construction and to me a CO is at the end of a large project.

Thanks for answering. I'd just never heard of that before.

THat ws news to me too. Here you only get a CO at the end of a construction project. Is this property a redo?

 

[VistaLeigh'smommy]

if they don't want to buy, there is nothing you can really do. Did they officially pull out of the contract or are they talking about it? Maybe you can convince them to have a few contracters and inspectors in to make them feel comfortable!


Home inspectors are such alarmists. I had a guy come in once who told the buyer that there was mold damage in the crawl space basement and the only way to get rid of it would be to rip out ALLL of the floors and have it treated, then rebuild the floors. A process he guessed would cost $18,000.00. They buyer FREAKED!!! We had the mold treated (without touching the floors), added extra support beams, and created a mold barrier all for $5,000.00. They have so much power and should not be making guesses.


Sorry that you lost your buyer, I hope things go well!!

 

[GJM]

We did offer them to get an estimate for the work and we will take it off the price of the townhouse.

Plus we did some other things that they wanted fixed and we did fix, most of it just cosmetic nothing major.

What is the point of a signed contract if you can just get out of it. They signed it in Jan. and they tel us now. We had other bids but excepted there's. Why sign a contract if it means nothing - and our lawyer is NO help at all.

 

[dcgrumpy]

What is the point of a signed contract if you can just get out of it. They signed it in Jan. and they tel us now. We had other bids but excepted there's. Why sign a contract if it means nothing - and our lawyer is NO help at all.

I'm sorry, but I think an inspector telling them there is structural damage is a legitimate reason to get out of a contract. I'm sure it's frustrating for you but I can't blame them. I know if I were buying a house I wouldn't want to take a chance.


I know when we bought our house and signed the contract there was an inspection and mortgage contigency

 

[amarberry]

Home inspectors are such alarmists. I had a guy come in once who told the buyer that there was mold damage in the crawl space basement and the only way to get rid of it would be to rip out ALLL of the floors and have it treated, then rebuild the floors. A process he guessed would cost $18,000.00. They buyer FREAKED!!! We had the mold treated (without touching the floors), added extra support beams, and created a mold barrier all for $5,000.00. They have so much power and should not be making guesses.

That is the truth! I guess they have to make you feel like you are getting your money's worth from their inspection. The buyer's inspector when we were selling our old house told the buyer that our boiler was leaking gas . Well, we were naturally very concerned and immediately called the gas company to check it out who found no leak what so ever . In addition to the gas leak false alarm, the inspector put a whole bunch of little, insignificant (especially considering that it was a OLD house) "problems" on the report that they wanted us to fix (uh...sorry, if you want a house in perfect condition buy new construction, but I digress).

I have no idea what your rights as a seller in your state might be, but you should see if you are entitled to an independent inspector (one that both you and the buyer pay for equally) or a counter-inspection. The allegations of structural damage is not insignificant and as others have pointed out, even if this buyer falls through, this information would need to be listed on your disclosures.

 

[bicker]

What is the point of a signed contract if you can just get out of it.

The flip-side to that is, "What is the point of buying a house if it has major problems with it, that weren't revealed in the pre-contract disclosures?" The contract actually outlines the obligations, including the provision for an inspection by a professional, and the cancelling of the contract if that inspection turns up anything.

I'm also sorry for your upset. Hopefully you can remedy whatever situation does exist and can find a new buyer soon.

 

[GJM]

But that is the thing we are agreeing to have someone come and look at it and if there really is a problem that we would deduct the price to fix it from there buying price.

Plus they knew about this the middle of Feb. why didn't they back out then and not in the middle of March. They had the inspection done on Feb. 10, the told us March 13 they don't want the house.

We think they may have found something else.

 

[bicker]

It is very possible, but the contract should explicitly outline what they are required to accept from you as compensation, if anything, when the independent inspector finds something, and should explicitly outline within what timeframe they have to provide notification.

 

[ILUVMYBRIT]

They definitely should have said something sooner. That was wrong of them and more than a little suspicious in my opinion. Why didnt they mention it with the other things found in the inspection that you had to fix? We were given an addendum (sp?) for our contract the day after the inspection of things found that needed to be fixed and it was signed by the buyers and my ex and I. Once fixed the sale went through.
Either way, have another inspector come asap to make sure so it can be cleared up for future buyers. Sorry about your setback, I'm sure it's very frustrating.

 

[kdibattista]

It's been over a year but I think we were required to notify the seller within 10 days of anything we found during the inspection. Definitely sounds like they found something else.

 

[VistaLeigh'smommy]

yeah, usually there is a 10 day period to let you know if there are any problems that they want fixed, or if they want to back out.

If that is the case in your state, you *MIGHT* be able to keep their deposit since they would be out of contract..... long shot, and again, keeping the deposit means they have to sign a release form as well as you, so it might just end up in court.


do you have a lawyer? Get one and have him tell you what you can do!