There is a lot of available information explaining the recent NAR settlement effecting the residential home buying process. Many of the explanations have been offered by brokerages, social media from those in the industry, and state or local realtor estate associations. I found the explanation offered by Tanya Monestier a contract Law Professor from Buffalo, New York, or in other words, someone without “skin in the game,” to be a neutral explanation providing good advice. As with anything these days, there is a lot of information available, as well as misinformation. It’s quite simple actually…you simply need to understand what you are signing and negotiate the best deal that works for you. As always, Bergmann Law is here to help with your real estate questions.
We are in the lineup for this year’s Fall Conference! The program has been approved by the Appraisal Institute, and additionally approved for 7 CE hours by the New Jersey State Board of Real Estate Appraisers, the New York State Board of Real Estate Appraisers for 7 CE hours and approved by the Insurance & Banking Commission for NJ Real Estate Continuing education for 7 elective CE hours. Approved by the State of New Jersey Tax Assessor Continuing Education Board for 4 appraisal hours & 3 administrative hours. Purchase tickets on the Metro NJ Chapter website here: https://ainewjersey.org
As I sit in Court, waiting for my client’s case to be called, observing the cases on the docket in front of me, wouldn’t you know it, the next one is a homeowner/Buyer (“Plaintiff”) suing the former homeowner/Seller (“Defendant”) for post-closing inspection issues. This case is dead on arrival, but it should at least be interesting.
The story is the usual one. Seller and Buyer enter into a standard contract for the purchase and sale of a home. Buyer has a home inspection and plumbing issues are discovered. Major, water running down the walls, type of plumbing issues. Buyer makes plumbing repair requests and Seller says no. Buyer is a tenant and feeling pressure to close anyway because she’s already given her landlord notice. She has spent money on inspections and appraisals. She feels like she has no choice, so she closes anyway. Without the plumbing repairs and water still running down the walls.
Why?
Her agent told her she could just sue the Seller, post-closing.
Wow.
Agents and brokerages were named, but only the Buyer was in the Courtroom and she was clearly shocked the “legal advice” from her agent was completely wrong. The Judge was patient. He was kind. He very gently told her she had no case as he read a large portion of the contract back to her and into the record. The Judge then ever so gently, entered judgement in favor of the Seller.
And by the way, what did the Seller have to say in his defense? Nothing. Absolutely nothing. It wasn’t necessary. He didn’t even appear in Court, nor had he filed an answer to the complaint. He just sent in his lawyer and as it turns out, that was all he needed to do for absolution. Judgment in his favor, and nothing for the Buyer.
So, what is the moral of the story? Representation in the largest financial transaction you will likely make – or the advice and a chance to walk away from it – is always a good idea.
Call us before you close. Better yet, call us when you make your offer. Post-closing issues are rarely resolved to the satisfaction of a Buyer once you leave the closing table.
Don’t be that post-closing, unhappy homeowner. Protect yourself, your investment and your piece of mind.
Bergmann Law LLC 