On Sunday, August 17, 2014 11:55:53 PM UTC-4, wrote:
I am going to try to address all points made since my last post, starting with trader 4's.



And you did. Now I think we have a much better idea of what's going on.



On Sunday, August 17, 2014 5:01:19 PM UTC-6, trader_4 wrote:

I still don't understand what the "objections amendment" was all about.



The precise wording of the boilerplate document the buyer (electronically) signed on Aug 4, but did not email to me (via the realtors) until Aug 14, is as follows:



Title: "Objection, Resolution, and Waiver Amendment to Purchase Agreement.." Underlined and in bold an inch from the top is the statement "This amendment is subject to all existing deadlines in the Purchase Agreement."

Section 2 is titled ""Objections and Requested Cures"

Section 2 A. is titled "Reports and/or Documents referenced in this Amendment." The buyer typed in "Home inspection dated Oct 30 2013." I had provided the 2013 home inspection report to my realtor on July 25, before signing the Purchase Agreement." I do not know when my realtor sent the report to the buyer's realtor.

Section 2 B. is again titled "Objections and Requested Cures." The buyer typed, "Buyer requests a list of items repaired or replaced by Seller based on inspection findings." Nothing more was written; no list of defects they wanted cured, nothing but the one request for me to provide a list as quoted here. Said list of what I had done having been provided to my realtor the day before (Aug 3).



Based on the above, I'd say they accepted the inspection report you
gave them and gave no indication that they wanted a separate inspection of
their own. And whoever drew this up, did a poor job. It's not 100% clear
if they are accepting the inspection, but I'd say it looks like they are.
Even worse, it's totally unclear if they are demanding that everything
on the inspection report be fixed, or if they are just seeking more info at
that point. If I were in their position, I would have said that based on
the inspection report you provided, I want X, Y, Z either fixed or a credit
given to me to cover the cost of the repairs, if they have not been fixed.
That way, I specifically identify what I care about and what I don't. For
example, an inspection report could say that the HVAC system is near the
end of it's life. Some buyers might try to use that to get you to put in
a new one. Others might not. If they said in that document that they
want X, Y, X done, then it's clear those are the only things left, all
else is accepted. It's bad for you for them to not specifically
make the identification of what they want fixed or credited and it leaves
it open for them to come back at you with later.



I see also in the Purchase Agreement under the section titled "Inspections - Buyer's Objections," is the sentence "If no written objection is delivered to the Seller in writing by the Objection deadline, the contingency shall be deemed waived." Under "Inspections - Resolution," the Purchase Agreement states, "If the objections are not resolved by the Resolution Deadline [Aug 15], this Agreement shall terminate."



So, since that date has now passed, potentially they have an out, by claiming
they provided their objections on Aug 4 and you didn't respond by the Aug 15
deadline. I think the wording of just "objections" in the original contract
is poor too. I would have said something like "Buyer has until Aug 13 to
provide seller a list of any specific items that are identified in
the inspection report that are not acceptable to buyer."





The whole exchange and timeline since July 26 about the home inspection (re-inspection? who knows?) does not make sense to me. Hence my comment earlier today that I do not know where things stand. Though I am getting a pretty good idea at this point.



They had a date to get an inspection done by, another date to get to you any

issues regarding things to be fixed. The contract also states that the

buyer gets the less than a year old inspection to accept or decline. You

provided that, right?



I provided the 2013 inspection report to my realtor on July 25, during negotiations. I provided the list of corrections I had performed on Aug 3. In this list I elaborated and stated where I had receipts and other proof, offering same to the buyer. I also stated at the end of the list that the buyer was welcome to inspect any and all items above on sufficient notice. Based on the Aug 4 proposed amendment document, it appears the buyer did receive the inspection report in a timely fashion.


Do you know if the buyer ever got the list of corrections that you provided
to your realtor? That would be very important, because that is all the
buyer wanted in their Aug 4 objection letter.




I would say the fact that they did nothing about

another inspection, is acceptance of the existing inspection report.

And failure to notify anyone of any defect list based on it by the Aug 13

deadline, closes the window for that too.

From the above, if they got

nothing signed, then they had to Aug 11 to get a new inspection and they

had till Aug 13 to get you the fix-it list based on either that new

inspection, if done, or anything off the old inspection they want to

check, oject to, etc. Both those deadlines passed.



Thank you for the above clarity. What you wrote makes sense.



So, what exactly was the purpose of this objections amendment that

got lost and never executed?



At this time I think the proposed amendment's only value is to demonstrate that the buyer's realtor is so new to this that he neither knows how to handle a buyer's questions nor subsequently execute a Purchase Agreement.



For sure the vast majority of this rests with the buyer's realtor. It's
their client's clock that is ticking toward the deadline and they should
be on top of it. If I were the realtor, I'd probably put the relevant
deadlines in my phone or PC calendar so that a few days before, I could
check to make sure they are complied with.




Why wasn't whatever it concerns included in the signed contract from day 1?



My best guess is that it is another blunder on the buyer's realtor's part..


Since the "objection ammendment" is what I'd call an "objection list" or
"fix-it list", I now understand why it couldn't be in the original contract..
This is normal, the poor way it's been handled is the problem.




snip, hopefully without loss of context

Referring to the buyer and buyer's realtor --

I think they did do something wrong, which is to drop the ball. They were

the ones wanting an amendment of some kind, right?



Yes. I was waiting for a call to set up another inspection, or else a document stating the buyer had accepted the old inspection. Per the Purchase Agreement, the ball was in the buyer's court.



The bad part here is that you still really don't have that. Per my
comments above, from what they've said, it looks like they have accepted
the previous report, but it's not 100% clear. Worse, it's not stated
what on that inspection report they are objecting to and what they are
not. As I said above, inspection reports can say all kinds of vague things,
like "pool deck will need to be resurfaced soon". If
you don't have an actual specific list of the items THEY deem important
and object to, you're in no mans land. How much stuff like that there
could be depends on what's in the report.




It was up to them to

make sure they got some response. If I was a buyer and I got no response,

I'd be calling, checking, especially as deadlines approached. What they

did wrong has only resulted in them screwing themselves.



I suspect the buyer's biggest mistake was in trusting his realtor. Same for me. Especially as my realtor tries to strong arm me on this matter, in favor of the buyer. My realtor knows I am angry about this. I think I did a pretty good job of restricting my exchange with him to the facts of the blunders and my inconvenience. When he tried what seemed to me to be double talk, I informed him I believed I had the right to back out of the contract at this point. My realtor did finally admit that the realtors dropped the ball, with the communications snafu.



From what I've heard so far, I don't think you have any basis for backing
out. The only thing that's happened so far, is the
deadlines for the inspection/objections have passed. If the buyer is
willing to continue on, accept the list you've provided of the repairs
you previously made, etc, then as I see it the contract is in force and
you have no out.





Who exactly did drop the ball?



So far all I know is that the buyer's realtor was using two different email addresses. My realtor said the email address that he used at one point was 'the wrong one' for sending docs to the buyer's realtor, and so the buyer's realtor did not get some information until late. I am not clear on which information this was. It does seem clear that the buyer the 2013 home inspection report and my list of correction by Aug 4.



OK, if you know that the buyer got your list of correction on Aug 4, then
you're in a real good position. You did respond to their objections list
and heard nothing more from them and the deadlines have now passed.




Shortly after both buyer and seller signed the Purchase Agreement, my realtor also complained that, the buyer's realtor was neither returning phone calls for several days (if at all) nor responding to emails.



Which means from then on your realtor should have been keeping real good
track, asking for confirmation that things were received, etc. When this is
over you might want to call up the owner of the other realty firm and register
a complaint and see what they have to say.




Better if it's their realtor. And did you

know for sure that they were sending a proposed ammendment and what it was

supposed to contain?



No. This was a surprise.



I don't see why it would be a surprise. You gave them the previous inspection
report. They had a window to respond to it, get their own inspection, etc.
then get back to you by Aug 13. BTW, those dates 11, 13, 15 are awfully
close together. I would have spaced them out a little more.




I feel like one never knows what home inspectors will come up with. For example, my roof had around 25 sq. feet of new shingles added last year, per the 2013 inspection, but the next inspection may yield an inspector who says this is not good enough.



Yes, that's always the risk. Which is why I suggested telling them that

they missed their inspection window, you've fixed X, Y, Z per the less than

a year old inspection. They can either accept that, come look, or hire an

inspector at their own cost. I'm starting to think the last part is not

the best idea either, for reasons you poiont out later.....

snip

If it's their realtor fault, better for you. But I'd say even if your realtor

dropped the ball, it's tough luck for them. They signed the contract, with

the deadlines for inspections. It was up to them, their realtor, their

lawyer, if they have one, etc to keep track of their contractual obligations.

Thanks again for the clarity.

snip



I think maybe one other option that is a bit tempting is to tell the two realtors they can now pay for the home inspection and warranty, or the deal is off. I know they do not get 6% commission; their companies do, and they get a tiny slice of this.



I don't think you want to do that option. So far, from what you've told us

so far, you're 100% in the right.

If you now interject some new condition, then you're breaching the solid,

existing contract, by altering the existing terms. The existing contract

is clear and the deadlines have passed.

You shouldn't feel sorry for them here. Deadlines are there for a

purpose.



Thank you! My realtor keeps insisting the dates may be played loosely. Here I am trying to make plans around specific dates, recognizing that requests for amendments might happen so I need some flexibility depending upon what I want, and my realtor is saying the dates count for nothing.



When your realtor and/or a client loses $10K because they missed some
deadline, maybe they will learn. Suppose the buyer misses some deadline
that gives the seller an out and the seller now has an all cash buyer or
a buyer offering $20K more.....



You want the house sold, it's costing you money, taxes, etc. They

missed the deadlines and it wasn't your fault, so I don;t see the need to pay for an inspection to possibly let them out of a solid deal. They could do

an inspection, then bitch about thousands worth of crap.



What other possible outs do they have at this point? Are they getting

a mortgage with a mortgage contigency?



Yes. If the lender disqualifies the buyer prior to Aug 25, then the buyer keeps his earnest money. Also the buyer has until Aug 25 to "object" to the HOA disclosure.



Which complicates things. IDK why you'd give them such a long period
to object to the HOA disclosure, unless that's required by law.




If yes, then do you have a committment letter yet?



No. I have a pre-approval letter only. Friday my realtor said the mortgage company told him that day that all was on track. Though this counts for nothing legally. The buyer could still queer the deal, keep his earnest money, and be out only the cost of the appraisal inspection completed on Aug 11.. The appraisal itself is not in yet.



Agree




If they have that as an out, you need to

proceed more cautiously, because they could queer the mortgage deal

to get out of the purchase. If you have a committment letter, then

you're in a much better position.



Understood.



One other thing worth considering is that maybe this miss isn't so

innocent. Maybe they are having cold feet, want out, etc. You never

know for sure what people are up to......



I agree. Since the buyer has at least two ways to get out of this without losing his earnest money, I would rather he call it quits sooner rather than later.



Regarding comments from others about communicating with the buyer effectively: First I tend to think that my contacting the buyer directly at this time is a violation of my contract with my realtor.

Why? Does it specifically say that? If it did, I would have insisted
that be struck out.



Second I do not trust my realtor or the other realtor to convey honestly what happened here. They might. They might not. I have no way of telling. My best bet is to insist on certain wording in any legal document that requires both the buyer's and seller's signatures.



I have signed nothing amending the Purchase Agreement. Thanks all for compelling further thought on this. I think I have to decide whether to risk losing this buyer or put up with the incompetence of the realtors here and make the sale happen. I keep in mind more mistakes are likely, based on what has transpired so far. Plus I feel like not calling the realtors out on this now means they may try more foolishness, and I will regret bending further and further to their mediocrity.

I don't see why this can't be salvaged, unless the buyer actually wants
out. I would talk to your realtor and find out exactly what the buyer's
position is at this point, ie:

1 - They have the list of repairs you made? (you think they do)

2 - Those repairs are acceptable?

3 - Inspection/repair contingency is now removed?

If the answers are yes, then I would send the buyer a letter stating
that you provided the requested list of repairs on Aug XX and
that you want them to confirm that the inspection/repair contigency
is now removed. Then you're 100% back on track.
If they say no to #3, then you have to figure out what it takes to
resolve it.