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Old 11-13-2014, 10:03 PM  
KChiefs1 KChiefs1 is offline
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Real Estate Legal Question

My brother has had a situation come up & he asked for my advice & of course I thought of the Planet for possibles answers.

Here's the deal. He listed his 15 year old house for sale, listed with Remax & filled out the sellers disclosure on April 23rd. He got a very fast offer & they agreed on the price. The agent told him that the home inspector the buyers hired was a known deal killer in her words & to expect issues on the inspection. The inspection came back that the inspector stated there were settling issues & the basement floor was heaving.

He has never had any issues with water in the basement & the agent had a home inspector she knew check it out & he said it was minor settling & nothing major. Those buyers backed out & he relisted it again. The next buyers came & made an offer & they had a home inspection completed by a different inspector & he said there were minor settling issues in the basement & he put it on his report. They went ahead with the purchase.

My brother just got served as the buyers are sueing him for fraud as he never changed his disclosure statement. The buyers are also sueing the home inspector too. He doesn't think he did anything wrong as he never had water issues in the basement & he can't understand any of this. His agent never had him fill out another disclosure statement & he painted & put in new carpeting in the house.

What should he do & should he have anything to worry about? Anyone with real estate legal experience got any suggestions. The buyers want him to buy back the house which he can't afford since he just bought one. He is frazzled & can't understand how he did anything wrong.

Thanks for any help.
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Old 11-13-2014, 11:12 PM   #31
KChiefs1 KChiefs1 is offline
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Originally Posted by TribalElder View Post
sounds like he will be paying for some foundation work at the very least. The fact he painted and put new carpeting in the house is irrelevant. If the buyers find out about the first deal that fell through and the fact it was ignored you might be bout to get raped.

Should have sold it with an As-Is disclaimer

I know he didn't do anything to cover anything up but he trusted the people with knowledge & experience & I guess it's going to end up costing him.
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Old 11-13-2014, 11:13 PM   #32
Ming the Merciless Ming the Merciless is offline
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Originally Posted by KChiefs1 View Post
I know he didn't do anything to cover anything up but he trusted the people with knowledge & experience & I guess it's going to end up costing him.
well maybe he can recover or maybe his real eastate agent's insurance is bound to defend him

Nick might have some ideas! (id love to hear your thoughts nick)
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Old 11-13-2014, 11:14 PM   #33
TribalElder TribalElder is offline
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Originally Posted by KChiefs1 View Post
I know he didn't do anything to cover anything up but he trusted the people with knowledge & experience & I guess it's going to end up costing him.
Look through the real estate contract and see if you can transfer the issue to the agent being at fault.

breach of contract for not informing client of the need to update the disclosure statement after the first deal or something
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Old 11-13-2014, 11:22 PM   #34
cosmo20002 cosmo20002 is offline
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Here's the problem with being required to disclose the 1st inspection--what if the inspector was full of shit?

According to the OP, there was a second inspection done by the seller which said only minor settling. And then the buyers had their chosen inspector say minor settling.
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Old 11-13-2014, 11:27 PM   #35
Ming the Merciless Ming the Merciless is offline
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Originally Posted by cosmo20002 View Post
Here's the problem with being required to disclose the 1st inspection--what if the inspector was full of shit?

According to the OP, there was a second inspection done by the seller which said only minor settling. And then the buyers had their chosen inspector say minor settling.
Actually from my understanding the second inspection was done by the buyer...so from their perspective..the second inspector 'missed' the more serious problem that the 1st inspector found....the problem that was not disclosed.. ('checking it out' may or may not be an actual inspection.....)

Obviously that is question #1...Is the seller required to disclose the 1st inspection.

QUestion #2 would be , Is the seller required to disclose the 1st inspection even if there are subsequent inspections showing the 1st inspection was erroneous.

Question #3 would be what is the REAL situation...? Is the basement heaving or not?

Question #4 is the real estate agent 'on the hook' for the damages from not disclosing the inspection if #1 is YES....

Question #5 are there any contingencies that were removed or anything else in the contract that would help the seller to absiolve himself of this...

etc
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Old 11-13-2014, 11:38 PM   #36
nstygma nstygma is offline
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Here's a part of the Seller's Disclosure used in the KC area.



I wonder what was originally entered here:

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Old 11-13-2014, 11:42 PM   #37
KChiefs1 KChiefs1 is offline
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Quote:
Originally Posted by cosmo20002 View Post
Here's the problem with being required to disclose the 1st inspection--what if the inspector was full of shit?



I believe the listing agent believed that as fact because around the area the inspector is known as the deal killer. That's why when another person said nothing major except minor settling she believed them & never mentioned to my brother about a new disclosure statement.
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Old 11-13-2014, 11:46 PM   #38
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Originally Posted by nstygma View Post
I wonder what was originally entered here:




I think he put no to all of those.

I know he didn't have water issues & the only crack was in the floor. The walls had no cracks in it. He had never been told he had any issues so he answered no to all of those but I don't have it here to check.
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Old 11-14-2014, 12:09 AM   #39
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Originally Posted by KChiefs1 View Post
I think he put no to all of those.

I know he didn't have water issues & the only crack was in the floor. The walls had no cracks in it. He had never been told he had any issues so he answered no to all of those but I don't have it here to check.
One said crack in floors answered as no
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Old 11-14-2014, 12:32 AM   #40
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My brother didn't know he should have redone it. He is blindsided by this whole thing. The disclosure statement has his signature on it from the first listing & there wasn't a 2nd one completed.
If he used the same listing agent then they screwed up because they knew the results of the first home inspection. That should have went into the seller's disclosure. As an agent if you know anything about that house you are suppose to disclose it.
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Old 11-14-2014, 01:07 AM   #41
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get a decent lawyer and he'll get the case fleshed out in ADR
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Old 11-14-2014, 02:35 AM   #42
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I have nothing to add. Christ man. That sucks.
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Old 11-14-2014, 03:55 AM   #43
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The thing about home inspectors are this: it all boils down to the fact that you are paying for their opinion. You just have to trust they know what they are talking about. And that's tough to do sometimes.

Yes they have a standard of practice and code of ethics to follow but it comes down to what they know combined with common sense.
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Old 11-14-2014, 07:56 AM   #44
KChiefs1 KChiefs1 is offline
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I do this for a living, if the property is in MO, I would be happy to talk to them for free.



80% of what is in this thread is wrong. 816-224-9500. Ask for Nick.


I gave him your number & he told me he would try to call this evening. Thanks!
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Old 11-14-2014, 08:37 AM   #45
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Geez...that sucks. I wonder how many sales end up having legal problems like this, with people being the way they are these days.
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