Why is the broker required to sign the "Contract Release - Earnest Money Disposition Request Form"

Question

I am under contract to buy a HUD home as an O/O. I had an inspector meet me at the property and he believes I have a termite issue. I am having a termite inspector out next week to confirm and give a repair estimate. But I am under a deadline. I only have a few days to get the termite inspection report and get it back to HUD people.

What worries me is the deadline. And the fact that, even though buyer agents are supposed to be protecting you, they seem not really to care anything about the home buyer, other than the sale being completed so that they get paid.

I've alerted my agent to the possible termite infestation issue and all the agent replied with was that the termite issue can be fixed. I might have responded, "at what cost and how do you know it's fixed for sure". But I simply let her know my opinion that a treatment does not guarantee a resolution to the problem.

So, I have to seriously consider cancelling my contract once this is verified by the proper people.

So back to the original question. If my broker dawdles around long enough because he/she doesn't want the contract cancelled for termite infestation(or any other reason) and doesn't get the signed form back in time, because honestly, what good is that for the buyer agent, what happens then?

It seems so backward to require the signature of the broker in this type of situation. You put the broker in the awkward position of cutting their own throat, so to speak. Does anybody think differently than I do?

Wayne Brooks · Answer

Don't concern yourself with the agent not signing the release. If you email them your intentions, and they fail, your broker will be required to repay your EM.

Joel Owens · Answer

Termites are everywhere. The barrier is supposed to help keep them away from your house.Agents in dealing with sub 80k properties it is generally about volume. Many are working another job trying to squeak by to pay the bills. So they will try to overcome any objection to close a sale. Some are ethical and put the clients first and others do not.The issue with termites is are they active or is it old damage?? If the damage is old how extensive is it?? If you can't look behind walls then you have to budget for the worst.Carpenter ants can do just as much damage. There are many other things besides just termites that can damage a property.

Greg H. · Answer

Bradley-Termites here happen all the time and that is why it is not that big of an issue the vast majority of the time. Horror stories are horror stories because they do not happen very oftenReal estate is the same as any other investment as it involves some risk. A property with termites, although you still are not sure of that, is a minimal one. Just make sure the numbers work and you will be fine

Bradley N. · Answer

I didn't mean to offend anybody honestly. But I do believe that the in-built system of being rewarded only when you sale homes can lead to, at least a few, very pushy and dishonest agents. I guess this comes down to more a human behavior discussion which is beyond what I really wanted to get into.Maybe I am just lucky but some of the agents I have been involved with have said some pretty crazy things to make sales. One I'll never forget. "Buy this home today for 80K. If you don't like I'll sell it for you in 2 or 3 years for 110K". After that comment, I asked if we could tear up the real estate contract I had signed on agent exclusivity. And he did the right thing. He tore it up.I am paraphrasing the figures above but it was very much so along those lines of thought.It does sound like you are downplaying the seriousness of termite issues also. In your state they may not be a problem. But I have read horror stories about termites. They can be financially devastating. So I am thankful at least somebody is watching out for new home buyers for these very issues.

Greg H. · Answer

@Bradley N.Termites more often then not are a minor issue in our part of the country. Usually a few hundred dollars for a spot treatment. Lumping all buyer's agents into one group is unfair and dead wrong. There are tons of great agents out there. What leads you to believe that your agent doesn't care ?If you are that concerned that your agent wont get it signed in time have your agent sign the earnest money disposition form now and send it to you. You can then sign and get it to HUD if need be.

Bradley N. · Answer

Actually, there have been several red flags with this agent. But I guess, sometimes, you don't place much value in the agents themselves. I learned a few years ago to do as much research about everything on my own, versus taking anything an agent says at their word. Its hard to know sometimes when to cut ties and I didn't do it soon enough.The agent has been very pushy with the sale and I understand they want to make money like anybody. I just wish there was a better system, where they got paid a different way. But it is what it is.I don't know that this agent would go so far as to not honor my request. But what if an agent does? I guess like you suggested, I would simply have to tell my story to the licensing commission.

Dan Mackin · Answer

There are other places in the contract that you can pull out if your agent really was that bad. If they didn't follow through on their side of the agreement which is to represent you then you can always report them to the licensing commission and have litigation for what money they lost you due to their negligence. Did you feel this way about the agent before you signed with them or is it an opinion that came up afterwards?