Due Diligence and RE agent disclosure, almost learned the HARD way - Posted by Jim IL

Posted by Jim IL on March 24, 1999 at 17:50:16:

I had a possible “flip” deal pending, and last evening my agent calles and says that the listing agent called her with a message for me to call the “City inspectors office”.

I already had a signed contract by both parties, and plenty of “weasel” clauses in place. So, although somewhat curious, I was not panicked.

I called the “City inspector” today, and he “just wanted to tell ya what your getting into”. I was still not panicked, because this was an UGLY house!
Condemned did not scare me a bit, and our offer reflected the appropriate fix up costs.

The “City inspector” went on to tell me that he was in the middle of negotiations with the “former owner” about demolishing the home, and when he called them back for an answer, they gave him my name as the new owner.
Boy, was he surprised that I had not even closed yet!!

His take on the property was pretty much exactly what I already knew. He listed the repairs just about word for word as my inspections sheet. So, I still was not too worried.

I then got to thinking…the “seller’s agent” never mentioned that the city wanted the home demolished. They also LIED to the city by stating that I was the “new owner”.

So, we are probably going to pass on this one, unless they are willing to renegotiate the contract back to about HALF of our previous price.
The good news is that this home comes with two lots, and I already had a possible buyer for one.
So, we may still pull off a deal.

But, I missed calling the city to make sure that this house was not on some “list” or something, and rest assured that in the future, I’ll call on ALL ugly houses.

Just thought I’d pass along this not so good, not so bad experience to you all.

I hope it helps you, before you get to where I am,
Jim IL