I meant to, but … the hot weather … it’s making me sluggish. 😛
But I’m telling you now.
The seller refused to release our earnest money.
He claimed that since he agreed to “fix” the termite damage, he had fulfilled his half of the bargain and we were expected to buy the house. What he DIDN’T realize was that I HAVE SMART READERS who scared me thousands of miles away from that infested house.
This totaled our house-adventure losses at $350 for inspection and $500 earnest money. We would have also had to pay $300 in loan application fees, but, being the procrastinators that we are, we hadn’t turned in our half of the paperwork and were on our way to do so on the day we found out about the termites.
We asked the realtors what to do to get our earnest money back; they said to call an attorney.
At this point, I’m starting to wonder why we even got realtors involved.
So Josh called the attorney, and he said the seller was completely within his rights to keep our money if he has followed our requests to repair the damage.
But he hasn’t fixed the problem. How are we to know the termites aren’t also beneath the carpet? in the walls? in the ceiling?
So we addressed this issue in an updated request to the seller. Josh worded it beautifully, making it sound very legal and impressive. He told the seller that in order to fix the damage found in the inspection, the seller would have to rip up floors and tear open walls, not only in the house but also in the garage. He’d have to hire an engineer of Josh’s choosing to inspect the place, and then, of course, he’d have to put the everything back together again. To our satisfaction.
In a perfect world, this would have been all we needed to get out. Unfortunately, the world of house-buying and realtors is far from perfect.
Because we also had a timeline to follow, and if we missed any steps along the way, WE would be the ones defaulting and the seller could then steal our $500. After the acceptance of our offer, we had 21 days to secure financing. (And remember? We never turned in those papers.) Those 21 days were due to be up on Friday, unless the seller signed a 10 day extension. And the seller had 6 days to accept or decline our request for repairs. And we made the request on Tuesday. So if he was a clever, merciless, scruple-less character, he could wait until Saturday, when WE defaulted and then take our money.
We explored other options. Our co-signers (Josh’s parents), said they’d pull out, leaving us without financing, therefore getting us our money back. Because apparently, in every other city, the inability to secure financing means you get our money back. And if you read the purchase agreement we signed, it looks like it might say something along those lines, but it is very vague. But our realtors were kind enough to explain to us that it most certainly does not mean that. So we couldn’t get out by losing our co-signers.
Our only other option, it seemed was to finish the loan paperwork, pay $300 for the underwriting and application fees, and end up at least getting $200 back when our earnest money came back.
Unless, of course, the seller agreed to rip up floors and tear down walls. Then I don’t know what we’d do.
So we prayed. Our ex-co-signers prayed. I meant to tell you guys to you could be praying.
Sorry about that.
But anyway, yesterday, we got a call from the realtor saying that the seller has released our earnest money and has released us from our purchase agreement.
Big sigh.
Turns out he has scruples. Thank you, Lord!
So, NEXT TIME, when we do this house-buying thing, Josh and I are going to write our OWN purchase agreement that will VERY PLAINLY STATE in CAPITAL LETTERS that IF THERE IS TERMITE DAMAGE FOUND UPON INSPECTION AND YOU HAVE NOT DISCLOSED THIS INFORMATION, SELLER WILL RELEASE BUYER’S EARNEST MONEY, REFUND INSPECTION COSTS TO BUYER, RELEASE BUYER FROM THE PURCHASE AGREEMENT, AND THEN WALK ACROSS HOT COALS TO BUYER’S SATISFACTION.
The end.
Glad to hear you got your money back and didn’t have to jump through too many hoops for it.
Glad to hear that’s all over with!!:)
Oh my! That sounded very stressful indeed! I’m so happy your money was returned to you.
I am so glad that you got the earnest money back. What a jerk for toying with you like that. Buying a house is a huge headache.
Woot woot! That guy is a moron. Nobody is going to buy that house with termite damage, the least he could do was work with you possibly on it. It’s going to have to be demolished otherwise.
AND THEN WALK ACROSS HOT COALS TO BUYER’S SATISFACTION.
LOL
I’m happy things have worked out! Housebuying can be so stressful, even when things go smoothly.
I’m glad you got your earnest money back. We were in the same situation and got nothing back. That was 8 years ago, and we’ve never seen the money.
Hi, Glad to hear things worked out for you. Sounds like the contract has flaws.
Below are paragraphs from the UT Real Estate Purchase Contract. We believe the buyer has the right to inspect a property and cancel or object. If the buyer objects, the buyer and seller have a time period to come to agreement in writing. If they cannot resolve the issue then the buyer has the right to cancel, there is a time period that has to be followed.
I also attached a link to a copy of our contract. It ties to another section 10.2 which is the seller warranties.
Good luck on the house hunting.
8.1 Evaluations & Inspections Deadline. No later than the Evaluations & Inspections Deadline referenced in Section 24(c) Buyer shall: (a) complete all Evaluations & Inspections; and (b) determine if the Evaluations & Inspections are acceptable to Buyer.
8.2 Right to Cancel or Object. If Buyer determines that the Evaluations & Inspections are unacceptable, Buyer may, no later than the Evaluations & Inspections Deadline, either: (a) cancel this Contract by providing written notice to Seller, whereupon the Earnest Money Deposit shall be released to Buyer; or (b) provide Seller with written notice of objections.
8.3 Failure to Respond. If by the expiration of the Evaluations & Inspections Deadline, Buyer does not: (a) cancel this Contract as provided in Section 8.2; or (b) deliver a written objection to Seller regarding the Evaluations & Inspections, the Evaluations & Inspections shall be deemed approved by Buyer.
8.4 Response by Seller. If Buyer provides written objections to Seller, Buyer and Seller shall have seven calendar days after Seller’s receipt of Buyer’s objections (the “Response Period”) in which to agree in writing upon the manner of resolving Buyer’s objections. Except as provided in Section 10.2, Seller may, but shall not be required to, resolve Buyer’s objections. If Buyer and Seller have not agreed in writing upon the manner of resolving Buyer’s objections, Buyer may cancel this Contract by providing written notice to Seller no later than three calendar days after expiration of the Response Period; whereupon the Earnest Money Deposit shall be released to Buyer. If this Contract is not canceled by Buyer under this Section 8.4, Buyer’s objections shall be deemed waived by Buyer. This waiver shall not affect those items warranted in Section 10.
http://www.3poundsofrealestate.com/forms/Salt_Lake_Real_Estate_Purchase_Contract.pdf
Rob Aubrey
1 Timothy 1:12-17
We learn every time we do something don’t we! I am glad it worked out for you and next time you will be prepared. Home buying can be fun and it can be stressful. The Lord will lead you to the right home.
Lisa Q.
Live and learn, right? 🙂 So glad it all worked out!
Yay for Beth and Josh! Way to go guys!!! Each adventure adds to your repertoire of tricks as well as answers to tough life situations! You are so smart…
Love ya!
I’m glad you held firm and got your money refunded. The seller will have a lot to do before he puts the house on the market again. If I were a realtor, I wouldn’t touch it with a ten, no, thirty-nine and a half foot pole!
Wow! What a headache. I’m so glad that it all worked out for you. Buying a house is such an ordeal. You guys did good.