Hi all-
I just wanted to run a problem that my partner and I are running into during a double duplex purchase. Properties are in Central Florida.
We recently went under contract for a pair of duplexes off the MLS, and were able to negotiate a decent reduction off asking (about 12 k per property) of these two side by side duplexes, 2 individual lots/contracts but from the same owner (a group of 3 siblings who inherited these investment properties 3 years ago). Contract signed by both parties and earnest money paid, then inspection period started.
During inspection, our inspector found several small issues, and a couple of larger ones, including a roof that had damage, required some shingle replacement and a water heater that was leaking (and very old). In addition, he found evidence of some termite treatment/past damage. He actually found that one of the two houses, both of which had been listed as block homes, is actually woodframe.
We asked for a credit at closing to cover this, $3000 per property.
When we brought this up, they then disclosed that there had been some treatment for past termite issues and that they had a current (transferable) termite bond. They then said that their handyman would repair the roof, put in new water heater, and fix some other issues.
We said that we were not comfortable with a handyman fixing the roof, esp in a long term hold rental, and that we would prefer to have a professional roofer fix this. We then wrote/signed an addendum to each contract that proposed a $1500 credit at closing to fix issues instead of accepting that their handyman would do it.
We were surprised to get a cancellation notice from them at this point, and are now in a position where we are arguing that our original contract is still valid, we wish to proceed with purchase even if they do no repairs and give no credit, and they can say that they are not going to do any repairs based on inspection report, but they cannot unilaterally cancel the sale (without incurring damages).
They and their agent/broker think that they can cancel the contract because they believe that our addendum was a counteroffer, and so this nullifies the original signed purchase agreement. They claim that their lawyer has reviewed and says this is valid. Our agent and his broker think they are very much in the wrong.
We have an appointment next week with our RE lawyer to discuss, but...what say ye, BP world??
Sebby
(PS. I know that we could just walk away, but this is a pretty nice deal, essentially a quad in a nice area of town, which is not too common in our neck of the woods....and besides, I would like to know the answer anyway so that next time we don't make the same mistake, if indeed this was our mistake).
