Signed contract this morning... condemned this evening

[Christina Brooks]

Hi All,

I have a question that I hope you can help me with. After two weeks of back and forth negotiation with an absentee owner of an abandoned property, we came to terms that we both agree on. I signed the purchase contract this morning and submitted the mortgage, note, and contract to the closing attorney to close Friday (a week from today). This evening I decided to drive by the property and I noticed a red sign on the door that says "Vacated... home is uninhabitable" posted by the city. I'm not sure if this means the home is condemned (and I plan to call them on Tuesday) but if it does am I still obligated to go through with the contract since I agreed to "as-is"? Can I still negotiate or completely walk away or am I stuck?

Thanks for any information or experience you can provide!

[Ben L.]

DON'T give up on the deal! You are still under contract right? The first step you should do is call the county and ask what exactly they put on the house. It may be as simple as a Code Compliance Violation on behalf of the county.

Tell the county that you are currently under contract to buy the house and ask them what is owed to "close" the violation on the property and if it is possible to wipe this dispute off the property since you are going to buy it and fix it up (if they say no, usually they will take a discount).

Also, make sure to check if you have any contingencies in your contract if the worst case scenario were to surface and you have to back out.