Seller Demanding Specific Performance

[Meghan McCallum]

Hi, I was supposed to close on a 20 unit building and 30 min prior to close, during walkthrough, we discovered a foot of sewage in the basement of the property. The sellers claimed it was cleaned up but upon a re-examination we found human waste STILL in the basement, not to mention the guy cleaning it up was just a maintenance man and had not come close to taking  appropriate measures to rectify (a shovel and hose doesn't clean up bio waste). We also discovered one tenant's unit was trashed, a **** roach infestation, and greater amounts f damage from tenants to the property.

The property is bank owned. I do hate the idea of re-trading on deal but this is the second sewer back up we have witnessed. I submitted a list along with pictures from our last walkthrough along with professional bids for work to remediate the new damage and discoveries.

Their lawyer is now demanding specific performance. Any suggestions?

[Matthew Olszak]

@Meghan McCallum More than once I've had buyers walk after a bad inspection (during the contingency) w/ the bank unwilling to budge at all in price, then the next day after they receive the cancellation I get a call inquiring on what my buyers need to get the deal done. I've also had the opposite happen where the bank did let the buyer walk and the property languished for months back on the market.

If you used a standard contract, there should be a clause that states that the seller is to maintain the property in the same condition throughout the contract period. That damage should give you an out. Confirm with your lawyer, but I wouldn't worry about their threat of demanding specific performance. If anything maybe you can push back that you want the property returned to the condition it was in when you signed the contract or $X (with X being less than their cost to remediate) in lieu of repairs. Put in your written request that you need an answer within 24 hours so that you can begin to correct the issue so the damage doesn't worsen.