Seller lied about completing repairs...what are my options???

Question

Good Evening BP,

I am looking to see if anyone can shed some light on my current situation, it goes a little something like this:

I purchased a rental property in Jan 2017 in South Carolina, this was an out of state purchase and I had to totally rely on my RE Agent who was acting on my behalf. I found a house that fit the criteria I was looking for and once the home inspection came back it detailed a great deal of issues going on with the home. The house was built in 1950 so there are a lot of things that are just not up to code and required attention. Mainly, I was concerned about the electrical issues that were identified. I stressed the importance of getting all electrical matters resolved to my Agent and the Seller prior to closing.

I received confirmation from my Agent and Seller that all the matters had been corrected/addressed via a repair addendum. An attached photo shows that the correction may have been made with spray foam and electrical tape. After receiving multiple complaints from my tenant about high electric bills (upwards of $900) I had the electric company come out and conduct an energy efficient test and change out the meters. I was set on the issue stemming from the electric company I filed a report on BBB to report the high costs.

Fast-forward to this year and continued complaints I decided to hire an electrician to come out and check out the underlying issues…sure enough he discovered all and more of the issues that was initially reported by the home inspector that a major fire hazards. NONE of the repairs had been made…I’m now looking at nearly $5K in repairs to get the wiring corrected and the house up to code. I feel it was very deceitful that the Seller would mislead and falsify documents for a quick all cash sale. I have belief that this isn’t a situation that should go unmentioned with me eating the cost of that and all the other repairs that were never addressed. Looking for any advice on this very frustrating matter. Thank you in advance!

Mike Cumbie · Answer

You have had posession of the home for 2 years. The return argument is going to be "I have no idea what you have done to that electrical panel in the last 2 years but it was perfect when we closed"

Brian Pulaski · Answer

Do you have actual signed documents from the seller describing exactly what work they agreed to do? If so, I would be prepping the wheels to speak to the seller and at the same time start thinking about speaking to an attorney. Just make certain it is clearly documented that you requested this work, the seller agreed to have it done and stated they completed it.

Ryan D. · Answer

@Chanieta Bradley

It’s almost always a bad idea to allow the seller to correct issues before closing. Their motivation is to do the cheapest job possible to just “check the box”, & you (generally) have no control over the quality of work done, who does it, etc.

Your best bet is to negotiate a price reduction equal to the amount of work that is required, then have it done yourself by contractors you trust.

Dennis M. · Answer

What could possibly have cost 5 grand to fix that ?

If the circuits aren’t “balanced”  ( notice most all the wires on the left side only ) then yes that will spike up the electric . Are you sure the electrician isn’t screwing you too ?

Lynnette E. · Answer

If the realtor actually sent you anything in an e-mail or text that states that the repairs were done, write to the realtor now and tell them it was not and you expect them to make it good.  They have insurance that covers their errors and your realtor should have told you to reinspect if it was questionable that it was not done correctly.  And in the future state that the work is to be done by a licensed electrician (or plumber or whatever) and then you get their information and call them and ask exactly what they did before you close.

I actually had a realtor hire her relative to do plumbing work prior to closing when I requested a licensed plumber.  When I sold a year later and the inspector said the repair was not up to code, I called the realtor and SHE paid for that repair when I sold.  Her broker's insurance paid...  This was in CA.

On a roof, the realtor said it did not leak, could not inspect as fast closing and the snow would not stop.  Seller in writing stated roof was less than 5 years old, did not leak, stains were old.  Well when that snow melted, it leaked big time.  Seller knew.  Small claims court had her pay for my brand spankin' new roof!  That was in Chester County PA.

You can win this if you have paperwork.

Wayne Brooks · Answer

Ahort of having some sort of hold back of seller proceeds at closing.....when you close, you are accepting that the property is in as agreed to condition as per the contract. Lack of follow up on the buyer side here.

Christine Stevenson · Answer

I am in a similar situation. Do you have any advice for me from what you have been through? I hope it all worked out for the best.

Kevin Sobilo · Answer

@Chanieta Bradley, as an agent when a seller agrees to correct issues found during inspection they are expected to have a professional do the work and to provide documentation of that. So, you should have received the contract with the electrician or invoice for the work completed and then be able to go back to the electrician if the work was not up to par.

If that wasn't done and the seller said the work was complete, then that should have been in writing and you should contact your agent as well for any documents or information they have. This would probably be a case you could pursue in small claims court.

I do agree with some of the above comments as well such as @Ryan D.. It would be better to negotiate the price down and have the work done yourself. You can better manage the quality and cost of the work that way.

Victor S. · Answer

a new panel doesn't normally cost $5k. what do you mean by "bring up to code"? they want you to rewire things outside of the panel?

Max T. · Answer

Sounds like your agent did you wrong.

Seller lied about completing repairs...what are my options???

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