Trying to back out of deal w/ failed inpection

[AARRGG]

What is the name of your state? Washington

We recently made an offer on a 3 year old home. Our realtor, thinking there couldn't be much wrong with the home checked the box on the purchase agreement stating that the seller would have the opportunity to fix any problems that were found in the inspection. Of course our realtor never informed us we even had other choices. In the disclosure form provided from the sellers they had answered "YES" to the question: " Are all plumbing fixtures connected to the sewer/septic main?" The inspection revealed that the entire master bathroom was never connected to the main and instead stopped just below the flooring right above the foundation wall so that all of the waste for the past 3 years has been splashing onto all of the adjacent flooring members completely soaking the sill plate, rim joist, and adjacent floor joists, and dumping the waste into the crawl space. We decided right there that no matter what they did, we would not want the house, but because of the option that was checked that said we must let them decided if they want to fix the problem, we filled out the appropriate form requesting extensive repairs and replacement to that area of the house and that they all be done by licensed contractors, and then have a mold specialist certify the house against future mold problems. We seriously doubt that the repairs can be done by closing (two weeks from now).

Q1 - How do we get out if the repairs are not completed by closing? Are there any other "outs"?

Q2 - can we get out because they misrepresented the house by stating all plumbing fixtures are connected to the main sewer line, when actually they weren't. They could have climbed under the house and checked themselves. They can't claim they didn't know, because they didn't check that box, they checked the "yes" box.

Q3 - Our insurance company said they would insure it if everything was fixed as we described, so is there any other way to make our financing "fail"?

Q4 - The seller and us signed a "safe harbor" addendum to the Purchase agreement that states as per the Revised Code of Washington 64.04.005 that if the buyer defaults on the agreement, that the forfeiture of the earnest money is the sole and exclusive remedy regardless of whether the seller incurs any actual damages. Does this mean they can not sue us for anything?

 

[FarmerJ]

Since the house isnt that old who knows what else the building inspector may have missed do your best to get out of that deal and go talk to a lawyer if you need to .

 

[HomeGuru]

What is the name of your state? Washington

We recently made an offer on a 3 year old home. Our realtor, thinking there couldn't be much wrong with the home checked the box on the purchase agreement stating that the seller would have the opportunity to fix any problems that were found in the inspection. Of course our realtor never informed us we even had other choices.

**A: Realtor is an idiot and should not be checking boxes in the contract without your direct consent and approval.
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In the disclosure form provided from the sellers they had answered "YES" to the question: " Are all plumbing fixtures connected to the sewer/septic main?" The inspection revealed that the entire master bathroom was never connected to the main and instead stopped just below the flooring right above the foundation wall so that all of the waste for the past 3 years has been splashing onto all of the adjacent flooring members completely soaking the sill plate, rim joist, and adjacent floor joists, and dumping the waste into the crawl space. We decided right there that no matter what they did, we would not want the house, but because of the option that was checked that said we must let them decided if they want to fix the problem, we filled out the appropriate form requesting extensive repairs and replacement to that area of the house and that they all be done by licensed contractors, and then have a mold specialist certify the house against future mold problems. We seriously doubt that the repairs can be done by closing (two weeks from now).

Q1 - How do we get out if the repairs are not completed by closing? Are there any other "outs"?

**A: an attorney would need to review your entire contract and addenda.
If your purchase was subject to approval of the Seller disclosure statement, then you may have an out here.
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Q2 - can we get out because they misrepresented the house by stating all plumbing fixtures are connected to the main sewer line, when actually they weren't. They could have climbed under the house and checked themselves. They can't claim they didn't know, because they didn't check that box, they checked the "yes" box.

**A: Holy crap, you can bring up fraud, misrepresentation and other things.
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Q3 - Our insurance company said they would insure it if everything was fixed as we described, so is there any other way to make our financing "fail"?

**A: do not hinge on the financing part, but on the improper Seller disclosure.
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Q4 - The seller and us signed a "safe harbor" addendum to the Purchase agreement that states as per the Revised Code of Washington 64.04.005 that if the buyer defaults on the agreement, that the forfeiture of the earnest money is the sole and exclusive remedy regardless of whether the seller incurs any actual damages. Does this mean they can not sue us for anything?

**A: no. And how come your Realtor has not explained to you each and every term and condition in the contract?
Is the Realtor working to protect your interest or does he/she just want to take the commission and run? Check your contract for an arbitration clause.

 

[AARRGG]

Well, did a lot of research and talked with lawyer.
-We are covered under the safe harbor statute, so even if seller was to sue, they would have no grounds as we had already forfeited our earnest money.
-Also, if the repairs are not done or done to our inspectors approval before closing, we are out with our earnest money
-Since we had an inspection done, a clause in the purchase agreement stated that the seller was no longer liable for anything disclosed or not disclosed on the disclosure form.
-Insurance company will insure home, so there is no failure to finance
-Yes the realtor shouldn't have checked any boxes without first explaining options. If we end up having to walk away from this house, he is refunding that amount from his commission on the home we end up buying

 

[HomeGuru]

Well, did a lot of research and talked with lawyer.
-We are covered under the safe harbor statute, so even if seller was to sue, they would have no grounds as we had already forfeited our earnest money.
-Also, if the repairs are not done or done to our inspectors approval before closing, we are out with our earnest money

**A: not a good position for you to be in but that's the way the contract was made.
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-Since we had an inspection done, a clause in the purchase agreement stated that the seller was no longer liable for anything disclosed or not disclosed on the disclosure form.

**A: no, this is a bunch of BS and contrary to your State's disclosure law.
A home inspection does not waive responsibility of the Seller to disclose material facts pursuant to the law.
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-Insurance company will insure home, so there is no failure to finance
-Yes the realtor shouldn't have checked any boxes without first explaining options. If we end up having to walk away from this house, he is refunding that amount from his commission on the home we end up buying

**A: big deal. This Realtor is an idiot so it is your right to continue to work with him if you want to.

 

[AARRGG]

Just wanted your opinion on what is going to be the final out come. The closing day is suppose to be today, the repairs are supposedly finished as of noon today. Escrow does not have the paper work from our lender yet nor some paper work from the sellers. There is no way the deal could close today because of this.
Our realtor, along with his broker and their attorney say that the purchase agreement expires tonight at 9pm and that the deal could not close later without an extension being signed. We have no plans to file an extension. Is it really that simple? Our realtor's broker is giving us a check tomorrow for the earnest money, as we are supposedly no longer bound to the agreement.

 

[HomeGuru]

I am not sure since a review of the contract documents would be needed.