Podcast Episode 74:
“Unconditional Mortgage Commitment:
Are You Sure?”
Sometimes a “sure thing” can come apart at the last minute. In this Tale, we have a buyer who found her dream home and was all ready to purchase. Or so she thought! Unfortunately, an inspection revealed major problems with the foundation. She was able to negotiate a reduction in purchase price, and so she went unconditional on the deal. But then the bank pulled her fully approved financing and left our buyer scrambling to save her dream home—as well as her $60,000 deposit. In the end, she found a solution, but this could have gone better if she had kept her financing condition on the deal until she was surer of the situation.
Download the audio file HERE and the text/handout HERE. (control click or right click + save as)
When an inspection reveals problems with a potential property, these need to be fully resolved—even when they seem like they might be OK. Before removing conditions from, make sure to nail down issues so that they are 100%. Close or sort of isn’t good enough!
That’s what buyers say when they discover problems after taking over a property because, “the seller knew about the flooding basement/mice in the attic/leaking roof”. When these kinds of questions come our way here at RMLO Law LLP, we turn to our resident litigator. If you have a problem where the only resolution is going to court, expect to pay a retainer and get prompt action.
Most things we buy (even used cars!) come with some form of guarantee or other protection from loss. Unfortunately, used real estate isn’t one of them. Apart from very narrow exceptions, you are truly on your own when it comes to dealing with issues that arise with a property after closing. This post discusses your limited options when trouble arises after you get the keys to your new property. Continue reading →