Can I back out on my agreement of sale ? I put 5k down in earnest money …What would it cost ? Could I win ?
Sunday, October 5th, 2008
Ok so here’s my problem. I found a house listed as a four bedroom home. I decided to put in an offer and my offer was accepted. I then signed an agreement of sale (which does not state the number of bedrooms).
Thankfully I hired a home inspector to inspect the property. The inspector informed me that the house does not qualify as a four bedroom home. I verified this fact with the local building code official.
I am worried that the appraisal done by the bank (for my loan) will come in at a lower value. There will be a loss in value going from a four bedroom home to a three bedroom home.
To try and smooth this over, his realtor provided me with an appraisal that supposedly the homeowner had done several months ago that matches the sales price. But in the appraisal, the house is listed as a three bedroom home. So this appraisal has no impact on what the bank decides as the value of the home.
My question is can I just get out of the deal and get my earnest money back? I feel that his realtor lied by using false advertising to list the home with more bedrooms than it actually has. Doesn’t the realtor have to follow the law and list a home in an accurate manner? What is my recourse?
Check your Earnest Money Agreement. It should have a clause in there about the completion of a home inspection. The law says that if anything wrong is found in the house during the home inspection and the seller refuses to fix it, then you can get out of the contract. I think that is a big problem when the realtor lists a home for 4 bedrooms, and during the home inspection process, the home is found to have only 3 bedrooms! That is a major wrong. Obviously the seller can not fix the problem by snapping his fingers and adding a fourth bedroom therefore you should be able to get out of the contract. Secondly, if the realtor gives you any trouble at all, you tell him that you will report him to the Department of Real Estate (DRE) for the unlawful act of falsely representing a house of his client with the intent to deceive and generate interest in the home by adding an extra bedroom in the listing. Further, you will recommend that the DRE investigates immediately and pulls his real estate license. That will do it. Problem solved. Realtors fear the DRE. The DRE has awesome and yes scary power. They can literally come in to a real estate office and tell you they are seizing all your records, padlock the front door, and shut you down in a matter of hours without any court order whatsoever, at least the California Department of Real Estate can and I’m sure yours can to. No one wants to mess with the DRE. Just the very mention of the DRE will send chills down a realtors back.
Family or Investment/ Income Home Near Ocean! Great family home or income producing property near the ocean. 3 Bed/2 bath home with double car garage and private large yard. Home was completely remodeled in 2006 from ground up with top-of-the-line fixtures and amenities. Tile floors cover the kitchens and bathrooms, laminate floors throughout the rest of the house. New roof, new interior/exterior walls w/ hardy plank siding and enough insulation to keep the house warm year round. Rent out the back unit($500/mo) and live in the front. Call Lucky 707-954-7926 for more homes like this. www.LuckyStarRealty.com