House under water

[Indiana Filer]

What is the name of your state? Pennsylvania

A friend of my husband's was buying a house in PA, with closing scheduled in 2 weeks from now. Well, with the flooding in PA, the house is now under water. Of course no one knows, until the water goes down, how much of the home will be salvagable.

The seller is saying that the buyer has to go through with the deal, and if not, the earnest money will be lost. Is this true? I would think that, unless the house is in the same condition as when the contract was written, the sale is void and the earnest money will be returned.

I understand that the buyer will lose his loan application fees and inspection costs.

Will he lose his earnest money if he doesn't want to buy a house that has been completely flooded?

Thanks!

 

[nextwife]

No, if the house is damaged prior to closing, the seller does not have the legal right to keep the earnest money if the buyer backs out. Certainly a flooded house needs to be reevaluated.

Oh, yeah. Their LENDER would probably not fund such a loan anyway.

Have they talked to their realtor or attorney or the title company they have holding the earnest money if this is a FSBO?

 

[divgradcurl]

What is the name of your state? Pennsylvania

A friend of my husband's was buying a house in PA, with closing scheduled in 2 weeks from now. Well, with the flooding in PA, the house is now under water. Of course no one knows, until the water goes down, how much of the home will be salvagable.

The seller is saying that the buyer has to go through with the deal, and if not, the earnest money will be lost. Is this true? I would think that, unless the house is in the same condition as when the contract was written, the sale is void and the earnest money will be returned.

I understand that the buyer will lose his loan application fees and inspection costs.

Will he lose his earnest money if he doesn't want to buy a house that has been completely flooded?

Thanks!

I agree with nextwife -- talk to an attorney. Although unlikely, risk of loss may have already transferred. Although many states do not transfer the "risk of loss" to the buyer until legal title transfers, some states transfer the "risk of loss" once a sales contract has been signed and all contingencies have been cleared, and in all states, the transfer of the "risk of loss" can be transferred by contract, so you will want to review your documentation.

 

[Indiana Filer]

I knew I'd get great info from y'all. I let him know. Hopefully it will work out since he really doesn't want to have to swim around a house.