Condominium Parking misrepresented by seller

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Condominium Parking misrepresented by seller

Anja Schepp
Austin, TX · Member since 2021 · 19 posts · 7 votes

Hello All!

Hoping to pick some brains on this one. I am under contract for a condominium near downtown Austin, TX. Intent is to occupy/heck for about a year to update, then rent. The seller listed the unit as having 2 spaces, and that is what is written in the contract that I have been signing to date.

Title, the lender and everyone else has signed off, assessment and inspection are done, and we are set to close on the 5th.

However, I cannot find legal record ANYWHERE of the second parking spot. The HOA docs that were provided showed only 1, and I flagged the issue to my realtor and asked for clarification. What I've read online says title and assessment should've caught this in their reviews. Regardless, it seems I have to choose between asking for more credit (unlikely), dealing with it (making this a significantly worse first investment), or walking away (not even sure if I have that option anymore). Or, eventually sue when the home purchased doesn't match the contract, but that sounds horrible, and more like I just didn't do my own due diligence on the property.

If I went the credit route, I'm not even sure how I'd begin to quantify that.

Any advice would be much appreciated!

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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y

Your Realtor should be taking the lead on this. Hold his/her feet to the fire, even going to their Broker if necessary. It seems like a pretty big deal to me. Maybe the 2nd space is in shared community parking?

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Your Realtor should be taking the lead on this. Hold his/her feet to the fire, even going to their Broker if necessary. It seems like a pretty big deal to me. Maybe the 2nd space is in shared community parking?

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    You should have a condo doc review period specifically to adress issues just like this one. If you are still in that period, cancel the contract. 

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  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    4y

    @Anja Schepp walk

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Anja Schepp

    Have you checked if it’s a tandem spot?

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  • Anja Schepp
    OP
    Austin, TX · Member since 2021 · 19 posts · 7 votes
    4y

    @Bruce Woodruff

    Thanks for the input, Bruce. I will reiterate the importance of this to her. How does one contact a realtor's broker directly? There is unfortunately no designated guest parking on the premise, but again, maybe the seller knows something I don't.

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  • Anja Schepp
    OP
    Austin, TX · Member since 2021 · 19 posts · 7 votes
    4y

    @Russell Brazil  Unfortunately I am out of that time now. Would you assume that if we only asked for clarification during that time, and didn't officially walk away, that I will be unable to do so now, even with 2 spaces on the contract? 

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  • Anja Schepp
    OP
    Austin, TX · Member since 2021 · 19 posts · 7 votes
    4y

    @Jonathan R McLaughlin 

    Thanks for your thoughts. Because it's too much of a red flag that the correct amount of parking was not on the contract? Or because value would be too affected to rectify, or something else?

    1Reply
  • Anja Schepp
    OP
    Austin, TX · Member since 2021 · 19 posts · 7 votes
    4y

    @Chris Seveney

    Good thought but unfortunately no, standard 9x20.

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  • Danielle Jackson
    Phoenix, AZ · Member since 2021 · 504 posts · 282 votes
    4y

    When did you receive your HOA docs relative to closing/condo review period? Your realtor should be handling this. This is what you pay him/her for. If you aren't making progress, ask to speak to his/her principal broker (if they aren't one themselves).

    1Reply
  • Alex KhanPro Member
    Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
    4y
    Originally posted by @Anja Schepp:

    Hello All!

    Hoping to pick some brains on this one. I am under contract for a condominium near downtown Austin, TX. Intent is to occupy/heck for about a year to update, then rent. The seller listed the unit as having 2 spaces, and that is what is written in the contract that I have been signing to date.

    Title, the lender and everyone else has signed off, assessment and inspection are done, and we are set to close on the 5th.

    However, I cannot find legal record ANYWHERE of the second parking spot. The HOA docs that were provided showed only 1, and I flagged the issue to my realtor and asked for clarification. What I've read online says title and assessment should've caught this in their reviews. Regardless, it seems I have to choose between asking for more credit (unlikely), dealing with it (making this a significantly worse first investment), or walking away (not even sure if I have that option anymore). Or, eventually sue when the home purchased doesn't match the contract, but that sounds horrible, and more like I just didn't do my own due diligence on the property.

    If I went the credit route, I'm not even sure how I'd begin to quantify that.

    Any advice would be much appreciated!

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  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    4y

    good questions, sorry for not expanding and i may have been hasty. The value will definitely be affected, by how much is another question and you would know the local parking landscape better than us. 10K? How much does it cost someone to rent a spot? Multiply that by 12 and then by some reasonable # of years. Definitely calculate the difference in rent and estimate its affect on quality of tenants. If its the kind of place that couples or families may rent that second space is likely to be a deal breaker. One bedroom, less so.

    If you brought this up in the due diligence period and it is unresolved you will probably still have leverage. This is as much your lawyers job as a realtor's. Definitely ask--in no uncertain terms--for the credit. And make a stink about it. There will be a lot of sound and fury but you will probably get your earnest money back. No "meeting of the minds" on the contract, misrepresentation, incorrect docs, etc.

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  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    4y

    @Anja Schepp Did you ask the seller where the 2nd spot is? This seems like something that can easily be cleared up with agent to agent communication. 

    1Reply
  • Jerel Ehlert
    Attorney · Austin, TX · Member since 2014 · 890 posts · 759 votes
    4y

    Most likely 1 reserved spot and 1 unreserved spot.

    But, like everyone else said, your agent/broker should get you answers. Last week of the year is tough to get business done.  If there is no 2nd spot, ask what they will do to make it right.  You might be surprised.  As much as you don't want to walk away, they don't want you to walk either.

    0Reply
  • Allen L.
    Rental Property Investor · Chicago and mainly invests in KS remotely · Member since 2018 · 360 posts · 314 votes
    4y

    A parking spot is likely worth 20K assuming you can rent it out. If cannot work out the parking, ask for a discount of the parking spot value. 

    0Reply
  • Ed Tamayo
    Investor · Sugar Hill, GA · Member since 2014 · 168 posts · 97 votes
    4y

    @Anja Schepp

    Hi,

    I think somebody already have you some of this answers but hero we go:

    1) have the seller show you the paperwork for the parking spots

    2) ask the lawyers to confirm that they’re are two parking spots on the legal description of the property.

    2) look it up yourself on the Deed given to the sellers. This document is freely available on the County Clerk office.

    If the contract says two parking lot and the legal description does not have that, you Can Wall out if so you want it.

    0Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    4y

    @Anja Schepp I recommend not taking legal advice from the masses, but rather your broker (via your Realtor) or your own personal attorney. To terminate, you need a valid termination clause (or contingency) in the contract. If you have passed your HOA review period AND your title commitment review period, you may not have a valid out remaining to terminate. Due diligence is always on the buyer to confirm before their contingencies expire. Your Realtor should be able to advise you if you have any valid termination clauses left in the contract. If not, your options become more limited.

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