Seller suing me for backing out

93 Replies

Originally posted by @Bryan Stocklas :

@Kathy Johnson I wanted to but he said he won’t have an electrician do it that he would put it in himself which I did not want

If the seller is not a qualified electrician, would that still prevent you from getting insurance / financing? 

Originally posted by @David Dachtera :
Originally posted by @Bryan Stocklas:

@Kathy Johnson I wanted to but he said he won’t have an electrician do it that he would put it in himself which I did not want

If the seller is not a qualified electrician, would that still prevent you from getting insurance / financing? 

How could the seller upgrade this electric service properly without a license? The power company would probably get pissed if they discover he's just pulled the meter to run new service wires. Seller probably doesn't even own the meter or service drop. Insurers and the bank may find it odd if the PoCo refuses to provide power. This is IMO a job for a licensed electrician.

Originally posted by @Dallas Hayden :
Originally posted by @David Dachtera:
Originally posted by @Bryan Stocklas:

@Kathy Johnson I wanted to but he said he won’t have an electrician do it that he would put it in himself which I did not want

If the seller is not a qualified electrician, would that still prevent you from getting insurance / financing? 

How could the seller upgrade this electric service properly without a license? The power company would probably get pissed if they discover he's just pulled the meter to run new service wires. Seller probably doesn't even own the meter or service drop. Insurers and the bank may find it odd if the PoCo refuses to provide power. This is IMO a job for a licensed electrician.

Agreed. The seller probably does not understand the scope of the work involved. That is, he's disqualified himself.

The idea I was communicating that the owner should go and get a permit for the work and he will soon find out what is available and what he was looking at. You could have 100 amps going into a building and only have a 60 amp breaker panel depending on the local building code for service installed.  I would be leery of the seller.  

Originally posted by @Ken Oz :

The idea I was communicating that the owner should go and get a permit for the work and he will soon find out what is available and what he was looking at. You could have 100 amps going into a building and only have a 60 amp breaker panel depending on the local building code for service installed.  I would be leery of the seller.  

I suspect the seller already knows the real scope. That's why he's threatening to sue and isn't working with the buyer. Did seller even disclose the obsolete electric service? 

Originally posted by @Dallas Hayden :

 How could the seller upgrade this electric service properly without a license? The power company would probably get pissed if they discover he's just pulled the meter to run new service wires.

Well, technically a homeowner can ( in most states) do work as an Owner/Builder. BUT....you are correct that a Power Company would freak out at that situation......When I, as a GC, have changed out a panel, they were very strict with me doing the panel upgrade myself - even though it is legal and I had plenty of provable experience doing so.

But yes, this is definitely a job for a licensed electrician...

Originally posted by @Bryan Stocklas :

Hi guys, I recently went to buy a rental property and after inspections were done the house only had a 60amp panel which means I can not get homeowners insurance for it. Since I can’t get homeowners insurance I can’t get a loan for the property. In the contract it says it is contingent upon the buyer obtaining a mortgage, however the seller has already gotten his lawyer involved and has sent a letter to sue me. Has anyone had any similar issues with this? I am obviously going to get a lawyer but just curious on if anyone has dealt with this before. Thanks everyone 

Talk to a lawyer in NJ. I can suggest a good one for this. feel free to reach out 

@Bryan Stocklas

Just a little outside of the box thinking. Turn this into a win for everyone. In this crazy market, I’d be surprised if you were the ONLY bidder on this property. Ask your agent to find out who the other offers came from and then, wholesale the property to them. I doubt you signed something in the contract that prohibits you from utilizing this strategy. Sell the contract to someone else who really wanted it for a small markup, that covers your expenses plus a little for the time you’ve already invested scheduling all of these things. Hand them your inspection findings as an act of good faith and everyone wins.

@Joe S. Now I am yes, it’s very shady that without any type of negotiation went straight to I’m going to sue you if you don’t go thru with it and his real estate agent told mine that it would be in my best interest to go through with the deal.

Originally posted by @Bryan Stocklas :

@Joe S. Now I am yes, it’s very shady that without any type of negotiation went straight to I’m going to sue you if you don’t go thru with it and his real estate agent told mine that it would be in my best interest to go through with the deal.

Assuming the law is on your side, I would definitely leave the deal after a comment like that. What else is he hiding? I wouldn't want to be bullied into buying a lemon. 

Not a lawyer, this is not legal advice.

@Bryan Stocklas  I'm in PA/NJ, had a seller say he was going to sue me for the time spent not being able to get a loan secured due to a flood plain.

I told him...bring it, dude. What do you want, my 1000 EMD? It's yours, you big fat baby. Or just hold your horses so I can try to get a different broker to get me a loan. He's screaming and complaining, I'm laughing him off.

6 days later I found a broker willing to loan, we go to table 45 days later.

People do this stuff all the time. Unless you're served, you're not served. And if people really are complaining with EMD on the line, just forfeit the EMD and walk away (assuming its 1000). If you can't afford the 1000 EMD loss than you probably aren't playing in the right sandbox. But a judge would see a forfeit of that and laugh their stupid case right out of the room.

Or, just find out what this amp service replacement will cost and just get it done. I mean, what's the number at the end of the day, $2,000? If the deals a deal than what's a $2k investment that won't mean anything 6 months to a year from now for you?

Seriously...look at the facts of the situation. You haven't been served, you can't get a loan because of the amp service, ask around further to get coverage (I'm sure you can), get a quote for the cost to upgrade either way, and either negotiate with him to split, cover, or GTFO and let him take your EMD if necessary. Non-issue.

Keep us posted @Bryan Stocklas I can't wait to hear how this ends up.   Hopefully you hire an attorney (and always hire one in the future) and he/she can straighten all of this out for you.   I'm up in the chicago suburbs and in my market you can kill a deal no questions asked as long as you do it while the attorney/inspection period is still open.   Killing the deal does NOT have to do with something being broken.   But either way hire an attorney to protect yourself! Good luck!!!

@Bryan Stocklas Sounds like he's just trying to scare you into buying.

My brother is a lawyer and he constantly says "yes, you can sue anyone for anything, that's not the question. The question is, how likely are you to win?".

I could file a lawsuit because I think you're harassing me on BP. It doesn't mean anything though. 

Offer half of the EMD to an attorney who gets you out of this deal and I would guess you'll have no problem with a local attorney writing some emails/phone calls/letterhead and settling this for you in no time. You don't seem to want to finish the deal and it sounds like you don't want to be bullied by the seller and his jackboot attorney pressuring you (nor do I blame you) when you are treated that way. The seller should know to cancel the contract and find another seller.

I don't think anyone asked.  How long was this home on the market?  Sounds like maybe yours was the only offer to come along in a while (or much higher) which is why he is trying to bully you into completing the purchase.