Real Estate guru's....long

[6pack]

Well finally got an offer on my house after almost 2 years....we counter offered they accepted. The contract was signed and my real estate agent got the ball rolling(inspections, appraisel, etc.) Well when they did a termite inspection they discovered some structural damage(I have a contract with Terminix). So we asked if we could extend the closing date...they accepted and signed the contract. A week later we had to get another extension....they signed again extending the closing date to the 31st of October. Well the next day their agent called and said they wanted to back out and did not want to give me my earnest money because the disclosure statement did not say anything about the damage from termites. To my understanding the disclosure is "to the best of your knowledge" and to the best of my knowledge there was no damage(Terminix never told me otherwise). So am I suppose to get the earnest money and if so....will I have to take these bums to small claims court? Thanks for the help in advance.

 

[Dr. Freeze]

I'm an ex-commercial broker and my wife's a residential agent... Here's the deal with earnest money...It ISN'T yours, it's the buyers. That is unless they default on the contract without ANY grounds; like "I changed my mind." Termite damage whether known or not is grounds for termination of the contract if the Buyer's choose to do so. Additionally it's actually fairly rare to get the earnest money if the Buyer backs out for ANY reason; the law actually looks more favorably on them than they do the Seller. However a GOOD Realtor will do what it takes to save the deal and yours should be doing what he can to do just that; and having some termite damage you should also do what you can to rectify the problem and make the Buyer's happy...Just go to them and ask: "What can I do that will help you buy my house?" If they're simply not going to do it, they're not going to do it and you need to refund their earnest money and be done with it. Find another Buyer...You WILL lose in court or remediation on this earnest money case; then you're out both the earnest money, the Buyer's, and probably attorney's and court costs! Here's a philosophy my father (president of one of the south's oldest and most prominent agencies) told me when trying to save a deal: "Some is better than none..."
-Jeb Burnett
Deep Freeze Cryogenics

 

[GN One Day...]

Gary,
I think you're right, but I'm not a realtor. My question would be to find out if that realtor is trying to keep the earnest money, for their time invested, or they may have found another house. The disclosure states:
This Disclosure is not a warranty of any kind by the Seller or any Agent of the Seller in this transaction and is not a substitute for any inspections or warranties the Purchaser may wish to obtain.
The last part states:
To the extent of the Seller’s knowledge as a property owner, the Seller(s) acknowledges that the information contained above is true and accurate for those areas of the property listed.

It's all based on what you know at the time of disclosure. They should have to PROVE that you knew beforehand, IMO.
The questions about termites ask about a HISTORY, not present. That's what the inspections are for. Things happen that homeowners aren't aware of.
On the other hand, look in the contract to see if they have it written in that they can back out if the inspection is not acceptable. That is a very real possibility, but since that isn't what the agent was saying, it may not be in there.

I think you might want to call the MS Real Estate Commission, if you don't have a realtor representing you.
A website that might help:
http://www.mrec.state.ms.us/

 

[6pack]

Thanks guys.....

It's just $500 so I think I will forget it. Dr. Freeze that is why we had to get the contract extended twice....to fix the termite damage.....it cost terminix $3200.