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We were house hunting in North Carolina and found a house that we wanted to purchase. Everything was going well. Our home inspection found a few items but the seller agreed to fix everything. It was a a Bainbridge loan. The appraisal was on target and the underwriting from Bainbridge came back good. The only thing left to do was the Bainbridge directed termite inspection. The inspection came back with a report of active termites in the front of the crawl space behind the front porch and standing water in the center of the crawl space under the duct work. After seeing the termite report we wanted out of our contract. The sellers agent is threatening to sue for performance of the contract since the seller has agreed to fix the condition. The termite report states that there were many inaccessible areas such as the garage and house due to stored items in the house, and that they did not check the crawl space insulation. My issue is this: can we cancel the contract and can we be sued? The sellers realtor is up in arms because the house selling is contingent on them purchasing another property. The disclosure statement stated that there was NO termite infestation present. Earnest money involved is $500. I really don't want to purchase a house that can have termites anywhere in the house since to really inspect it all you would have to destroy some of the property to accurately check the whole dwelling. Are we stuck? The contract says that if they fix something then we cant get out of the contract, but how do you verify that no more termites exist? Need help. I don't want to pay a quarter million dollars for a house that can have active termites! The sellers agent says that there are no problems with the foundation of the house, but I have no paperwork to validate that claim, besides pest inspectors are not qualified to inspect foundations. I want out and my money back! Three weeks left until closing.
Talked to an attorney today.He told me to write them a letter stating that I was canceling the contract because of non-disclosure, basically saying I wouldn't have made an offer on the house if I knew beforehand it had termites. Moreover, he told me that the sellers would be "hard pressed" to sue me for specific performance and didn't see it really having a great likelihood of occurring. After I wrote the letter and got it to my agent magically the property is back online in an active status instead of "sale pending." This just happened today, but I need the signed release so I can purchase another property (with no termites!) Can I demand that they release me from the contract since they re-listed the house or may I have to wait three weeks (when closing passes) to get the termination signed?
Hello Shock. Read the contract regarding the 20 day due diligence. Have the home inspected by a contractor. You can back out for any reason regardless and tell the realtor to go ahead and sue you. Your attorney will eat them for lunch. However a termite inspection is just that/ Now the seller must have the home fumigated. Tented for dry-woods and sprayed for subs. Then you will get a termite clearance.
No, you cannot cancel the contract and, yes, you can be sued. It appears that your contract clearly provided 'the right to cure defects' to the sellers. Since they have agreed to 'cure', you remain bound, regardless of your insecurities concerning potential future issues. Of course, the sellers are required to completely cure, and you have the right to insist that a complete inspection, including the crawl space and other hidden areas, be inspected and treated if required.