Real Estate Agent · Blackwood, NJ · Member since 2013 · 38 posts · 7 votes
I am a real estate agent in New jersey. I recently had a client purchase a flipped house. They have been in the home for 6 months and have been running into nothing but problems. A few of the issues involved leaking showers due to incorrect installation of shower stalls. The windows in the home were also installed incorrectly, frames are warping and becoming very drafty. All the carpet in the home has wrinkles and floors are beginning to separate. Pool in the backyard need to be resurfaced, the guy that flipped it just re-painted it to cover this issue. The pool has air pockets in the gunite which is causing it to crack. Does anyone have experience with real estate laws that protect homebuyers?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
As an agent, you should know what they are in your area. Ask your broker, other than the disclosure laws where you are, it's buyer beware. We have no idea what disclosures were made, if any.
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
9y
There is nothing that can be done now unless you can prove that they withheld information on the Seller's Disclosure. Many flips don't have a seller's disclosure so there is no remedy other than against the inspector possibly who did the inspection, if they were negligent in missing obvious things. It sounds like the flip was hiding these things so there doesn't seem to be much recourse.
Rental Property Investor · Roxbury, NJ · Member since 2016 · 29 posts · 8 votes
9y
@Terry Brennan. I almost made that mistake I was going to buy a flip property a couple months ago and I exactly posted in a forum not too long ago. I did a home inspection and it had problems went back to the seller and they agreed to fix it. During my walk through I hired a walk through inspector because my attorney mentioned once you close it's OVER nothing you can do so make sure you are satisfied with the property. Long story short the walk through inspector found many problems such as gas-lines, foundation problem everything was wrong so I backed out and it took me about a month to do so. However, my attorney did say if I would have closed it would be MY problem not the sellers anymore. So, I do not think you can do anything since they closed 6 months ago unfortunately, it's there problem now. (Don't quote me on that I'm just explaining my experience through what my attorney said. Hope this helps).
Contractor · Milltown, NJ · Member since 2016 · 297 posts · 213 votes
9y
Legally, I can offer you nothing. Ethically, I will certainly speak on. You ever watch those flipping shows on HGTV. You remember the ones in Georgia, Southern California, and Texas. Those flippers were so proud of how they negotiated their sub-contractors down to nothing. They made so much money, with very little construction expertise, and episode after episode, knowledgeable construction professionals watched corners get cut, and violation after violation get sold to a happy new homeowner. The rest of the world saw a bunch of fast talkers making a whole lot of cash, so they jumped on the bandwagon and armed with their new found knowledge, started flipping houses, just like they saw on tv. I don't see those guys on tv flipping houses anymore, however their fan base is still out there.
Unfortunately, you sold one of these products to a happy homeowner. The homeowner is no longer happy, and is looking for recourse. Well, they are learning what every one of those families on tv is learning, there is none. They don't show that part on tv though. You can find plenty of forums online demonstrating their unhappiness. Nothing mainstream though.
Going forward, I wouldn't show flips to your clients until you have seen a long, make that very long, list of happy homeowners with a 5-year minimum of ownership, claiming they received quality homes from any given flipper. Cynical, maybe. Justified, without a doubt.
Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
9y
I would have your client talk to a lawyer. The purchase contract typically provides the house as-is. That said, if there are things that were intentionally covered up there is potential recourse.
A lawyer would be able to help understand whether it's a worthwhile pursuit.
Good luck!
