Problems can crop up at closing
Q. My wife and I bought a house. We had a home inspection and the inspector said the air conditioner was no good. The sellers agreed to replace the air conditioner before the closing.
We did a walk through the day of the closing and saw the new air conditioner. The brand was a brand we never heard of and the size of the unit was smaller than the one it replaced.
At the closing we complained about the unit. The seller's attorney told us this was the unit that was recommended to the sellers by the company they called out. He also said that they complied with the agreement in that they said they would replace the air conditioner and they did. Our attorney advised us to go ahead with the closing, so we did.
We have not had a chance to check if this air conditioner will cool the house because it has been too cool. We are afraid if we wait until next summer, it will be too late if the air conditioner does not do the job. What can we do today to protect our rights if the air conditioner isn't big enough?
A. Any time I represent a purchaser and part of the agreement is that the seller will replace some significant element of the residence, whether it be a new roof, an air conditioner or whatever, I insist the agreement includes language that requires the purchaser to approve the replacement. Obviously, most sellers will simply purchase the cheapest replacement they can buy, which of course is not in the purchaser's best interest.
As for your situation, find the owners manual for your new unit and determine it's specifications. Talk to someone that specializes in the sale and/or installation of air conditioners and ask them if the unit is sufficient for you size and style of home. If it is, and you have a warranty for the unit, the seller has most likely satisfied your agreement. If the unit is undersized or deficient in some other way, find out what it would cost to correct the situation. Then, I would have your attorney contact the seller's attorney and demand that you be made whole. I would also suggest doing this sooner rather than later.
Q. About a month ago, I signed a contract to buy some vacant land. I was going to close at the end of September. I gave the seller a $2,000 deposit.
A couple of days ago, I got my check in the mail with a letter from the seller telling me he no longer wishes to sell the property.
I got a great deal on the property and I want to buy it. Is there some way to force the seller to complete the contract?
A. It is impossible to offer an opinion specific to your case without reviewing the contract. As a general rule, either party can legally enforce a contract. The remedy you would be seeking is called "specific performance." You would be asking the court to order the seller to comply with the terms of the contract and convey the property to you per the terms of the agreement.
I suggest you contact a real estate attorney for further assistance.
Q. How long does someone have to pay off a loan once they have been served with foreclosure papers?
A. We've answered this question before, but given the continuing condition of the real estate industry, it is worth repeating.
There are actually two statutory methods to resolve and pay off an arrearage with the mortgage company. The first is reinstating the mortgage. A homeowner may reinstate a mortgage, if, within 90 days of all parties in interest being served, the homeowner brings his or her account current. Bringing the account current includes all back payments, interest, attorneys fees and costs incurred by the mortgage company. Most mortgage companies will allow reinstatement after 90 days, as most mortgage companies would much prefer a current account over another foreclosure.
The second statutory method of resolving an arrearage with the mortgage company is redemption of the mortgage. A mortgage may be redeemed if, within the later of three months from the date of judgment or seven months from all parties being served, the entire balance of the mortgage, including interest, attorneys fees and costs, is paid in full. This usually requires either a refinance, a loan from friends or relatives or the sale of the property.
Speak to a real estate attorney about your specific situation.
• Attorney Tom Resnick's column appears every other week in Homes Plus. Send your questions to Tom Resnick, 345 N. Quentin Road, Palatine IL 60067, by e-mail to tdr100@hotmail.com or call (847) 359-8983.