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Buying & Selling Real Estate

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John Smith
  • New Philadelphia, OH
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Seller Stuck Buyer w Filthy, Damaged Unit at Close. Small Claims?

John Smith
  • New Philadelphia, OH
Posted Nov 23 2017, 21:56

Is a seller obligated to turn over a unit that is clean and in good repair at close? Seller took a tenants' security deposit as last month's rent just before close and stuck me, the buyer, with a filthy, damaged unit. Do I have a solid small claims case for cleanup and repairs due to tenant damage? 

Just bought second multi-family, a 4-unit. One unit become vacant two weeks before close. Stopped by day before close, saw an old tire and a piece of junk by the front porch and a bunch of broken blinds and got worried, as seller had been lax regarding everything to date. Was assured by seller thru our agents that she had personally cleaned the unit. 

At close was given a key that did not work for the unit. Had to break in, which wasn't a big deal since there were already small panes of glass broke in the door I guess, though it was a frustrating way to start things off with the new purchase. Go in, and place was absolutely, completely filthy (an earwig in the freezer, every inch of the fridge covered in gunk, toilet had not been scrubbed, cat hair everywhere, many surfaces covered in a thick layer of dust and dirt). And damage one would normally withhold some or all of security deposit for (several substantial holes in the plaster from doorknobs or fists, some woodwork in the kitchen completely shredded by the tenants' three cats, among other things).  

Buyer's case: 

that seller has general duty to hand over a unit that is clean and in good repair if a tenant vacate before close

that seller led buyer to believe such a unit would be handed over, insofar as she presented to buyer a strict lease that required tenant to either clean or repair unit upon vacating or have their security deposit withheld

Seller's case:

that apartment was cleaned me personally and seller is not required to do deep cleaning before close

that buyer has no right to compensation for any repairs, as they viewed the apartment [my counter to this would be, that yes, I viewed the apartment, but when I viewed the apartment the tenant was bound by the strict lease and seller was hold the security deposit to cover tenant-related damage]

This is in Ohio. A small apartment in a high-income tract neighborhood is at issue.

I have video, pictures, and a log of hours spent on cleaning and individual repairs.

Potential damages might include cleaning at $35 (figure established in her own leases for vacuuming), repairs at $45, and 2-3 weeks lost rent. 

Have any buyers faced a similar situation? 

Have any agents been involved in such a transaction? This might be a little different since it involves a tenant lease and security deposit that was taken a rent, to detriment of the buyer. But anything you might know about duties of seller at close regarding cleaning and repairs will be appreciated. 

Does anyone know of any legal precedents that speak to the situation? Damages won't be worth hiring a lawyer for, so finding a precedent on thru Biggerpockets would be huge. 

Thank you for all your help! The podcast and especially these forums have been immensely valuable in starting into real estate investing.

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