Working on my first deal.. Not going so smooth. I recently made a cash offer on a bank owned property, 5 k deposit, they accepted my deal. The property had a small roof leak on the back 2nd story roof. Along with my sales agreement, it stated, the property needed a tarp on the back roof, and a dehumidifier to remove the residual moisture, within 48 hours. They followed suit and had a company tarp and dry the room, all is well, until I drove by the property after a rain storm and noticed they had wrapped the over the edge of the roof, around the gutter and nailed under the soffit. the tarp was attached in such a way that it collected water against the house and allowed the water to come back into the property via the exposed soffit.
My agent tried to contact the sellers agent to fix/ resolve this issue but we have gotten no where, I told the bank that the property would need to be dried to proceed with the sale. After getting their legal team involved. They will not dry the property and would not release my deposit after the formal paperwork was submitted to them. They stated that the property is in the same condition and to proceed to closing as scheduled.
Besides arbitration how do I deal with this issue. Any tips?
The obvious question is how hard is this to fix, and what is the cost? If you have a good margin of profit and this a $1K fix maybe its time to get the deal done. If this is a $25K remediation and its a slim margin profit, then you need to demand they return your earnest money. If they won't you need to get a contract attorney to read your documents you have with the bank to see what your rights are. If you are going to fight the bank you will need to get an expert, perhaps a contractor to give you a written opinion on how they damaged the house in the way they attached the tarps. I see way too many people get wrapped up in it's the principle statements and they lose time and money on stupid fights. Fight if you need to, but don't win the battle and lose the war if you let a great property slip away.
Where are you as far as your contingencies? Have the deadline passed? How much damage are you talking about? Have you asked for a credit toward the repairs?
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing