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Helping seller of a fourplex asking $400,000.
The seller used a furnished apt unit for AirBnB weekly rentals.
Buyer did not sign the last page of the contract because buyers agent said it was the last page that would be signed only by the buyer attorney, if there is an attorney.
The buyer agent did not speak good English and was partially retired from work.
I said that buyer should sign the last page where it asked for the seller signature, other we would not have a good binding contract.
I was going to phone the broker of the agent, but first I phoned the agent to appeal again that the contract be signed in full.
She apologized and realized that buyer should sign the last page.
After the contract was signed and executed, buyer deposited the earnest money at the title company.
Buyer then hired an inspector and gave the inspection report to the seller accompanied by an amendment requiring seller to reduce the price by $20,000. A large part of repairs were claimed because the buyer inspector said that the 4 electrical breaker box panels would need to be replaced because they caused a fire hazard.
I helped to sell 9 other identical fourplexs on this same city block which had the same electrical panel manufacturer and there has never been a fire. Additionally, the City of Houston Dept of Habitability did an inspection 2 years previous and issued a Certificate of Habitability to the property, which means the property passed a safety inspection. We negotiated to have the seller give the buyer $2,000 for repairs, which would be credited to buyer at closing, thus reducing the funds needed for the buyer at closing.
A priced reduction would not have given the money to the buyer for repairs.
The buyer hired a lender bank in California with two offices in Houston, the same lender which we will discuss in another podcast.
Before closing, the lender wanted a preliminary closing statement to show where the money goes with debits and credits. The title company sent the buyer’s preliminary closing statement.
Approximately two years ago, the State of Texas, ceased to use the HUD One with buyers and sellers debits and credits on the same form. The State of Texas mandated that buyer closing statement (which shows debits and credits) be separate from the seller’s closing statement. None of their business. It is the private business to each buyer and each seller.
The buyer’s lender insisted to received the old formerly used HUD One.
The title company agent found the old software and printed an outdated HUD One form which satisfied the California lender. The title company however used separate buyer and seller closing statement for the final closing.
Buyer and seller separately signed the final docs.
I instructed buyer’s agent that the seller would move out of the furnished apt unit in 24 hours.
The next morning the buyer had a locksmith change the locks on the seller’s furnished apt unit.
At one pm, 2 hours after buyer changed the locks, the seller showed up with movers and truck to move the furniture from that furnished apt unit. His key would not open the door. He broke a window and crawled in to open front door and move the furniture out.
The phoned the police the next day to make a police report and the downstairs tenants confirmed the incident.
What do you think of this?