Back in 2000 I sold a home in South Carolina to a guy who was in the Navy. I made a couple mistakes that cost me a lot of money, so I will warn others here not to do the same.
The guy was using a VA loan for financing, which meant the VA did an inspection and appraisal (there was more than one appraisal if I remember correctly). Even though the home was 5 years old, the inspector found some things that needed to be repaired --since I was out-of-state at the time, I couldn't judge for myself, but agreed to have the repairs done (there was a problem with a beam in the garage, etc.), and it cost like $3500
There was supposed to be a final inspection on the day before the closing, but the buyer's agent instead elected to take the buyer over to the house the day of the closing (big red flag)
They showed up to the closing (I was remote, with my lawyer representing me at the time), and the buyer says "here is a list of additional repairs I want done, and I want the beam replaced again. I don't like how it was done. I'd also like someone to go over to the property and rake up the leaves"
his list was for another $3000 in frivolous, unnecessary repairs. So I told my lawyer "tell this guy to fu** off, I never agreed to that"!
then my lawyer says "well there's a problem"
me: "what problem"?
lawyer: "the purchase contract contains an arbitration clause. That means that if there is a dispute, the matter got to arbitration. The home gets taken off the market, and you have to pay all the arbitration fees. It could take 6 months"
so I said to my lawyer "well this guy is going to have to pay rent during that tine as well right? I call his bluff"
and the Navy guy told my lawyer "I live rent-free in barracks. Fu** you, give me the $3000"
so I was extorted for 3k at the closing table. Lessons to be learned here:
1. NEVER accept a purchase offer for someone using a VA Loan. Tell them to go get real financing, or you won't sell to them
2. NEVER sign a real-estate contract that contains and arbitration clause. Many of the ones used by the NAR contain these clauses.
10 years later, when selling another property, a buyer AGAIN tried to do something similar to me, but I had my lawyer remove the arbitration clause before the contract was signed. The buyer was trying to get me to refinish wood floors --and I told them "nope: and if you walk, you are losing the earnest money, and might end up in court". The closing went smoothly.
The guy was using a VA loan for financing, which meant the VA did an inspection and appraisal (there was more than one appraisal if I remember correctly). Even though the home was 5 years old, the inspector found some things that needed to be repaired --since I was out-of-state at the time, I couldn't judge for myself, but agreed to have the repairs done (there was a problem with a beam in the garage, etc.), and it cost like $3500
There was supposed to be a final inspection on the day before the closing, but the buyer's agent instead elected to take the buyer over to the house the day of the closing (big red flag)
They showed up to the closing (I was remote, with my lawyer representing me at the time), and the buyer says "here is a list of additional repairs I want done, and I want the beam replaced again. I don't like how it was done. I'd also like someone to go over to the property and rake up the leaves"
his list was for another $3000 in frivolous, unnecessary repairs. So I told my lawyer "tell this guy to fu** off, I never agreed to that"!
then my lawyer says "well there's a problem"
me: "what problem"?
lawyer: "the purchase contract contains an arbitration clause. That means that if there is a dispute, the matter got to arbitration. The home gets taken off the market, and you have to pay all the arbitration fees. It could take 6 months"
so I said to my lawyer "well this guy is going to have to pay rent during that tine as well right? I call his bluff"
and the Navy guy told my lawyer "I live rent-free in barracks. Fu** you, give me the $3000"
so I was extorted for 3k at the closing table. Lessons to be learned here:
1. NEVER accept a purchase offer for someone using a VA Loan. Tell them to go get real financing, or you won't sell to them
2. NEVER sign a real-estate contract that contains and arbitration clause. Many of the ones used by the NAR contain these clauses.
10 years later, when selling another property, a buyer AGAIN tried to do something similar to me, but I had my lawyer remove the arbitration clause before the contract was signed. The buyer was trying to get me to refinish wood floors --and I told them "nope: and if you walk, you are losing the earnest money, and might end up in court". The closing went smoothly.
Statistics: Posted by Manny1066 — Fri Aug 23, 2024 10:30 am — Replies 7 — Views 592