Nov 20 2017, 03:07 PM
QUOTE(freakfingers12 @ Nov 19 2017, 11:08 AM)
Hello, I've found a house that I like and have offered a price that both of us agreed.
1. Upon 1st viewing, I found some red flags that might be a bigger problem like roof leaking and whatnot. So the seller agreed he will fix all of them.
2. On the 2nd viewing which is yesterday, I jotted down all these defects and informed the seller again of my list and again he agreed. I also told him I will compile this into my letter of intent and pay 2% to my lawyer because he is not the owner of the house but his daughter is. And I never met or talked to his daughter.
3. This is where the problem comes, he handed me a simple letter printed out from fax machine that on the behalf of the house owner, he will be taking the deposit. And the letter is signed by him and not the real owner of the house.
4. I insisted on going with the lawyer because he promised to fix the defects and that's what I'm going to write in my LOI. He was arguing with me that it is not necessary.
What is the proper procedure? Do I pass the deposit to my lawyer and he received the money from the lawyer? Or can I bank in to the owners bank account after the LOI?
Beware 3) & 4), which may be red flags.1. Upon 1st viewing, I found some red flags that might be a bigger problem like roof leaking and whatnot. So the seller agreed he will fix all of them.
2. On the 2nd viewing which is yesterday, I jotted down all these defects and informed the seller again of my list and again he agreed. I also told him I will compile this into my letter of intent and pay 2% to my lawyer because he is not the owner of the house but his daughter is. And I never met or talked to his daughter.
3. This is where the problem comes, he handed me a simple letter printed out from fax machine that on the behalf of the house owner, he will be taking the deposit. And the letter is signed by him and not the real owner of the house.
4. I insisted on going with the lawyer because he promised to fix the defects and that's what I'm going to write in my LOI. He was arguing with me that it is not necessary.
What is the proper procedure? Do I pass the deposit to my lawyer and he received the money from the lawyer? Or can I bank in to the owners bank account after the LOI?
Normally, subsale is done on the basic of "as is where is".
Putting a clause to repair the defect in the LOI is not advisable, as sometimes, it is hard to "justify whether it is repaired or not".
As other said, if see the defect, negotiate with the seller that you will accept the defect, but at a slight lower price, win-win for both parties.
Finally, most importantly, deposit money only can be paid to the real owner, not other parties.
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