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Updated over 6 years ago,
Dishonest Disclosures in TX and Advice for a Greenhorn (me) Plz
I've been trying to purchase property in TX. I spend the time to research and find a "reasonable" investment, read the disclosures, then begin the contract, offer (all cash), and earnest money scenario. It ends after the inspection reveals problems (and they are not cheap, minor problems like water heaters). Then the seller will not fix it because it's big money. In TX the property owner does NOT return my $100.00 "earnest money" off after an offer fails; they are NOT required to refund it! Of course I get my 10% back from the title company, but it's a PITA to do this and lose money at the same time.
If the HVAC doesn't work right the owner, living in the home, obviously knows. If the electrical panel is substandard (dangerous) and they are the one who hard wired an extension cord in the attic while cutting through a major purlin holding up the roof, and the garage door doesn't open due to damage (when they hit it with the car?), the owner obviously knows that as well. I could go on and on with more and better examples but you get the picture. This time I decided after I pay for an expensive inspection and discover undisclosed, expensive problems the owner won't fix the owner gets a copy of the report via delivery confirmation. In most states, including TX, the owner must disclose the inspection to future buyers, by law, so he/she loses and the future buyer gets the benefit of my hard earned money.
This time I decided to explain this obvious scenario prior to the official offer/contract; thus rewarding the owner with $100 of my money for the offer, then paying for the inspection. Unbelievably (or quite believably in TX) the RE agents (sellers and mine) refused to fill out the TREC contract with the sellers contact information -- they wouldn't fill it in and I spent all day stating you can't leave boxes in a contract blank (special kind of stupid class 101) and expect someone to sign it. I was professional and polite but explained any attorney in the world would tell me not to sign it. The "stall" from BOTH agents began. At close of business I moved on and felt blessed I didn't waste more time and money. Obviously my agent didn't have my best interests in mind (that whole ethics and doesn't have any discussion). She obviously disclosed that information to the selling agent then they conspired (I'll concede to providing me with "misinformation"). Both stated I should sign a contract with blank/missing information because it's filled in "later" by the listing agent (I'm laughing now but it wasn't funny earlier). I explained the contract is between buyer and seller, not the agents! After three attempts I'm wondering if this is SOP in TX.
Does anyone have any tips that will save time and money when buying property in TX? If a seller is required by law to disclose to every future buyer what is found during the inspection, I'm struggling to understand why, in TX, I have consistently experienced this problem. I've purchased property in many states and TX seems to see this as everyday business. I know I can report the agents to TREC but... isn't that like putting the cat in charge of the mice? Certainly another waste of my time and money filing a report (the whole bizarre negotiation is in writing though, they aren't shy about it). There must be a better way to offer, negotiate and buy in TX but I can't see it, duh!