Who should I ask for my money??

Question

hello every one, I'm a newbie investor and I just closed the escrow on a house last month, now I'm in headache because I just found out the a/c unit needs to be replaced and the escrow is closed. What happened was that the inspector stated there was no power for the ac when he was there, therefore my agent didn't include the ac fix in the repair list, after the escrow closed and I've handed my house over to the management company they came back to me telling me the ac is broken, needs to be replaced, as well as the fireplace, the gas pipes are all busted as if it got burned completely before. Here are some facts about the transaction: the seller didn't disclose anything that wasn't working, my agent didn't include the ac in the repair list( on the inspection report it says the power source for forced air does not operate, the cooling system was not operated) and I don't know why. We didn't buy home warranty, seller never offered nor did my agent.

I really wish somebody could help me out here, really appreciated!

Di

I really wish somebody could help me out here, really appreciated!

Di

Gideon Sylvan · Answer

I don't think I've ever acquired a property that didn't have surprises.  In general, it's helpful to budget for unknowns.  That being said, the past is the past, and I would focus on your exit strategy.  There may be a legal opportunity here (the big one being what Steve Vaughan described), but keep in mind the holding cost clock is ticking.  In Washington (which I understand to have similar real estate laws to California), inspectors are only responsible for what they can see; sellers are only responsible for what they know (when disclosures are required); and agents are paid to negotiate and transact sales.

Wayne Brooks · Answer

Who should you ask for the money?...the guy in the mirror.  The inspector told you it wasn't tested because there was no power.  You create the "repair request list", not your agent.  Don't know the disclosure laws there, if one is actually required, or not.

Di Chen · Answer

Yes, indeed a great lesson learned for me!

Shuai Zeng · Answer

Tsk tsk tsk. Did you do research before buying a home? I'm not talking about market research. It's call due diligent. When you submit the contract, did the seller says Sell As Is? If the inspector says no power, you should have called the seller and have them turn on power and water. Tell them to also pay for the inspector return because no power. Seller does not have to put out in writing anything to make their value of house go down. It is your "responsibility"  to check every aspect of purchase. If your pointing fingers, maybe check the mirror first?

Di Chen · Answer

Thanks for the replies guys!

The TDS from seller states nothing is wrong, when obviously the fireplace is busted and the A/C needs to be replaced, so I suppose I have the ground on this, my concern is that if I pay for'em myself right now and have it rent it out would it affect my case afterwards? And if I leave'em the way they are and go straight to small-claim, how long would it take before I can get a judgement to have the seller pay for the repair and have it finally rent out? Just trying to sort out the best way out of this since its my first time dealing with stuff like that. Appreciate all the comments, thanks!

Di

Steve Vaughan · Answer

So many to blame, so little time! In the end, the transaction with any real estate purchase is buyer beware.  However, if a seller disclosure was (and should have been) completed yet didn't disclose material issues such as this, you may have cause against the seller.  If I got an inspection report that said no power to inspect a major mechanical, I would have had a re-inspection when the power was on. Hope this lesson doesn't cost ya too much.  Thanks for the warning to others!

Who should I ask for my money??

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