Buyer's Blues?

[Cabbit]

What is the name of your state? Florida

We are novice first-time buyers, and welcome the opportunity to ask some questions of the experts!

We received a contract to purchase a Buy Owner home in central Florida, and have found certain inconsistencies, even from a layman’s standpoint. The actual contract was drawn up by the seller’s title company, which is handling the closing. First, the seller had promised in an e-mail to cover all closing costs, and the contract contradicts this. The seller also states in the contract that he doesn’t have a survey on the property, which we find suspect, due to his recent addition of a privacy fence. He holds a mortgage on the property. Wouldn’t his mortgage company insist on a survey at some point?
Also, we have neither signed a contract nor given a deposit – are we bound in any way to a verbal agreement if we back out of the deal? We are starting to feel that the property is being misrepresented. This is compounded by the seller’s assertion that the property has only been on the market for several weeks, when we have seen it listed for months.
Should we go home with the cow, or keep the magic beans?



Thanks,

Bob

 

[JETX]

"First, the seller had promised in an e-mail to cover all closing costs, and the contract contradicts this."
*** So, contact the seller and have him/her correct their contract.

"The seller also states in the contract that he doesn’t have a survey on the property, which we find suspect, due to his recent addition of a privacy fence. He holds a mortgage on the property. Wouldn’t his mortgage company insist on a survey at some point?"
*** Not necessarily. But that doesn't mean that you can't insist on the buyer providing one.... or considering the cost of your providing one in your sales price.

"Also, we have neither signed a contract nor given a deposit – are we bound in any way to a verbal agreement if we back out of the deal?"
*** No. State laws required that ANY contract regarding real property be in writing to be valid.

"Should we go home with the cow, or keep the magic beans?"
*** That is entirely your choice and no one can make that decision for you.

 

[alligatorob]

Get a realtor or real estate lawyer quickly, I can see from your questions you are in over your head. The cost of this is much less than the costs you risk by not getting professional advice. If you can't afford the advice, don't buy the house.

I am neither a lawyer or a real estate agent but I have purchased and sold a lot of houses in Florida.

good luck,

Alligatorob

 

[Shay-Pari'e]

Get a realtor or real estate lawyer quickly, I can see from your questions you are in over your head. The cost of this is much less than the costs you risk by not getting professional advice. If you can't afford the advice, don't buy the house.

I am neither a lawyer or a real estate agent but I have purchased and sold a lot of houses in Florida.

good luck,

Alligatorob

How are they in over their heads? The contract is not legal and they can simply walk away from it.

 

[Cabbit]

Thanks for the replies. The response we got to our concerns via e-mail was answered by the seller with a request to speak to us on the phone. His reluctance to answer in writing makes us all the more suspicious. It seems if he were acting in good faith he would have put it in writing.
We really appreciate the assistance and advice.


Bob

 

[JETX]

Bob, if your true feeling is that this is a 'shady' deal with a high potential for problems, I would suggest you walk away and find another property.

 

[HomeGuru]

I agree with JETX. There is no contract so just find another home to consider.

 

[Cabbit]

Thanks for the advice. We're quite new to this, so it's difficult to know if it's a legitimate concern or just cold feet. We're going to return the contract unsigned, with our suggested changes, and see how that is accepted. As for the advice to get a lawyer, we had planned to have a lawyer oversee the closing, but hoped we wouldn't have to retain one for the contract as well.
On a related subject, we are trying to get quotes from three lending companies, but each one requires an approx. $350 deposit for their processing costs. Is there any way to get a firm quote without this deposit? (we will lose the 2 deposits once we choose a lender). We know about Good Faith estimates, but they want the deposit before processing the application.
p.s. this is a great site- very informative.


Bob

 

[HomeGuru]

Thanks for the advice. We're quite new to this, so it's difficult to know if it's a legitimate concern or just cold feet. We're going to return the contract unsigned, with our suggested changes, and see how that is accepted. As for the advice to get a lawyer, we had planned to have a lawyer oversee the closing, but hoped we wouldn't have to retain one for the contract as well.

**A: have an attorney review any contract before you sign it.
*******
On a related subject, we are trying to get quotes from three lending companies, but each one requires an approx. $350 deposit for their processing costs. Is there any way to get a firm quote without this deposit? (we will lose the 2 deposits once we choose a lender). We know about Good Faith estimates, but they want the deposit before processing the application.


**A: work with a mortgage broker and pay just one deposit.
*******
p.s. this is a great site- very informative.


Bob

**A: thanks.