-- Answers to Questions About Real Estate Law
Money and real estate news you can use everyday

Real Estate Lawyer
Question of the Week
Tip of the Week
Recommended Books
Contact Sam

Foundation Problems Stall Home Sale

Ask the Real Estate Lawyer: Real Estate Law Q&A

REM #LAW 717

By Ilyce R. Glink and Samuel J. Tamkin

Summary: A reader's family home is on the market and can not be sold because of problems found by an inspector. Unfortunately, they have no recourse with the builder or city inspector. Ilyce suggests getting estimates on fixing all the major problems.

Q: I am attempting to sell my parents home. They have been the only owners since it was built in 1973 and there has never been reason to have an inspection of the home.
(article continues below useful links)

I had a contract to sell the house and the buyer hired an inspector, only to discover a multitude of sins. The most critical problem had to do with the structural integrity of the home. The piers under the house are placed improperly and are not supporting load bearing walls.

The inspection found that there has been extreme settling in the house with unlevel floors, out of plumb doors, etc.

When the house was built, should there have been an inspection procedure either from the city or county? Would I have any recourse against them to collect for repairs? The builder has long since deceased. My mother is now a widow.

A: The short answer to your question is that the city or county may have conducted some inspections of the home when it was built, but a homeowner can’t rely on these inspections to give himself or herself any comfort that the home has actually been built correctly.

Municipal building inspectors can do a wonderful job making sure that things go smoothly in the construction of homes, however the time they spend at a site is so brief that they can’t find everything wrong with a house, even if the things are major items.

The home inspector who performed the recent inspection on your mom’s house may have spent two or three hours looking over the house. In 1973, and even today, a municipal building inspector may have a few hours to look at dozens of homes. If the building inspector sees something wrong, he will certainly cite the builder and force the builder to fix it. But for the things he misses, it’s caveat emptor – buyer beware.

If the homeowner finds out that there is something seriously wrong with the house once he buys it, he can go after the builder to fix it. In your situation, even if the builder was still around, it’s unlikely that the builder would have any responsibility for the issue 33 years after the home was built.

Your best bet is to seek the help of a competent contractor and a structural engineer who can give you an estimate of what it would cost to correct these problems.

In some situations, homes can be lifted and to a limited degree they can be leveled. Additional support can be added to the home.

Some of these solutions may be expensive, but others might not be. You may find that some of the solutions may not be too expensive.

Once you know what the cost will be, you can make a better decision as to how to sell your mom’s home. Here’s something to consider: Now that you and your mom know of this problem, your mom may have to disclose it to potential buyers of the home under her state’s seller disclosure laws. In addition, disclosing this information may be necessary to avoid being sued by the buyer of the home. You don’t want to sell the home only to find out that the buyer is suing you for the problem.

Finally, disclosing this information and costs associated with fixing these issues will allow the buyer to bid on the home on the basis of this problem and factor it into the price they are willing to pay for the home.

If the price is good enough, you may decide to sell the home without making the repairs. However, please know that your mom will not get top dollar for her property unless these problems are addressed.

Samuel J. Tamkin is a Chicago-based real estate attorney. Ilyce R. Glink’s latest book is 50 Simple Steps You Can Take To Sell Your Home Faster and For More Money In Any Market. If you have questions for them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact them through Ilyce’s website




RSS Feeds

RSS 0.91 Feed
RSS 1.0 Feed
RSS 2.0 Feed

Home Buying   Using Attorneys to Buy a Home - Earnest Money - Quitclaim Deeds - Easements - Seller Misreprensation - New Construction - Buying with Partners - Home Inspections - Seller Problems - Agent Issues
Home Selling    Using Attorneys to Sell a Home - Seller Disclosure laws - Title Problems - Buyer Problems - Real Estate Agent Issues - Tax Considerations
Home Ownership   Neighbor Problems - Seller Misrepresentation And Fraud Issues - Problems In a Condominium Development - Problems Around The House - New Construction Issues - Subdividing Land
Home Renovation   Architect Issues - Contractor Issues - Problems With Contractors - Inspection Issues - Certificate Of Occupancy - Municipal Inspections - Punch List Issues - Financing Issues - Installment Contracts
Real Estate  
Loan Application Problems - Refinancing Issues - Paying Off An Old Loan - Credit Problems - Seller Recommended Lender - Prepaying A Loan - Prepayment Penalties - Predatory Lenders
1031 Exchanges - Financing Investment Properties - Landlord and Tenant Issues - Partnership and Company Considerations - Tax Considerations - Subdividing Land
Contact Us | Sitemap | Terms of Use | Copyright ©2001-2005. ThinkGlink Inc. All rights reserved.
Reproduction of material from any pages without written permission is strictly prohibited.
Site design by Walker Sands Communications