Contingencies not met after closing

[Nicholas Ludwiczak]

I recently sold a SFH where the buyer had an inspection contingency and the buy requested 3 issues be corrected. We had corrected two of the issues but it took my realtor a long time to get a quote for the third item, fixing damage bricks, cracked cap and cracked tile liner on a double chimney. The cost of this quote was $6,500 and we tired but were unable to get the contractor to make the repairs before closing. The buy was closing on their house the same day as closing on mine and didn't want to move the closing date back so we agreed they would make the repairs within 20 days of closing. I didn't know this at the time but the escrow company holds one and a half times the amount of the quote incase of cost overages. The closing was 10/20/2020. I got a call from my realtor today, 40 days after closing, saying that because of the weather, the contractor will not be able to make the needed repairs until spring and the buys want to extend the deadline that has already expired.

There is an opportunity cost to them holding my $3,250 for 6 months and the buyer didn’t work with us on some other issues that came up between going under contract and closing.

Should I talk to a real estate lawyer and try getting all my money back? Should I try working with the buyers to come to an agreement where maybe I can get ½ the money being held at the escrow company and they get other ½, or do I just call it a good learning experience and wait to get what’s left of my cash after the repairs are made this spring?

[Patricia Steiner]

Geez...this really isn't a big deal but it sure is getting played out that way.  Why not simply end the marriage with the buyer and pay the bid amount for the repair less what the title agent is holding - and be done.  You'll need to have your realtor complete an Addendum to the Contract that basically states that in lieu of making the repair to the chimney, that the seller will pay the contractor's bid amount to the buyer less the hold-back from the title company as settlement in full of all repairs.  The title company will have both parties sign a release and disburse those funds to the buyer.  

And, then move on.  The problem with you making the repairs is that the buyer may not find the finished job to their satisfaction and then your marriage with them continues.  I would never put myself and/or my clients in that position. 

Don't spend more money trying to find a way out of what you're contractually obligated to do.  Just do it a different way and be done.