What is the law regarding this situation?

[hob97]

I live in California, and am in contract to purchase a house, a day after i entered contract i realized the stucco on two sides of the house was cracked and severly damaged, the realtor for the seller told me i have to make a deposit of 30k, i told her i dont want to until the house is repaired and i have it inspected. She is now threatening to sue me can she do this? She never informed me of the damage and i dont know if she was ever aware of it, i was under the impression when i entered contract that the house was in mint condition considering the house is brand new. I want the house i just want to know that the next earthquake wont bring the house down before i spend 30k that is non refundable. Could any real estate agents or lawyers help me out?

She told me the house is supposed to be repaired but it was supposed to be repaired by sunday, its not, and both sides agreed that the house would be repaired before escrow closes, but the 30k is non refundable even if escrow doesn't close.

[dacy17]

I can't answer specifically for California, but here in Texas there is an option period (usually around 10 days) during which either party can withdraw from the contract for any reason whatsoever. Surely there is something similar in California. Read your contract and talk to your real estate agent ASAP.

If you don't have a buyer's agent, GET ONE. You don't pay for a buyer's agent. The seller's agent has to split his commission with the your agent.

[morcan]

- A normal earnst money deposit in California would be $3000-5000.00 = I don't know what the $30000 is about
- Usually a purchase contract allows for the inspection of the property and allows the purchaser to back out if major damage is discovered. A new house should still have an inspection.
- Disclosure is part of the purchase prcess not the sales process. If something is disclosed that you do not agree with, you can back out.

what does YOUR realtor say?
- if you are using the seller's realtor as your realtor, I guess you have learned that's not a good idea...
= IF you are already in contract it is too late to get your own agent, unless you pay the agent out of your pocket. You certified the buyers agent as your agent.

If it's a new house and the structure passed inspection, the stucco is really only cosmetic = if has nothing with the house withstanding an earthquake or not.

Add'l Info: As part of the sells process, the seller must complete a standardized disclosure form listing anything that they know is wrong with the house (and has not been repaired). You made it seem like it is a new home that the seller has not lived in, so there is probably nothing to "disclose". You will still get the signed disclosure but no info will be listed.

If your offer included a provision that allows you to backout if there is major repairs that need to do done, you can backout. If your offer doesn't include this provision, you can't.

You should look into purchasing a one year home warranty.

[abraham90]

Typically a real estate contract not only needs a "meeting of the minds" in an agreed upon contract, but needs to be bound by something of value, most often a good faith deposit. If none had been accepted then a binding contract does not exist.

In addition most contracts include a contingency to have the property professionally inspected allowing the buyer to back out for virtually any reason that comes from the inspection or allow the buyer to put the ball in the sellers court by requesting any repairs or re-open price negotiations or simply kill the contract if the seller refuses. If you have no such contingency in a binding contract, you might be in trouble.

Lastly you need to make sure if the agent involved is acting as a dual agent (representing both buyer and seller) or only for the seller. If the agent is acting as a dual agent, the agent is at fault for not failing her fiduciary responsibilities to her client (you).