Home, Land, Property Buying and Selling - Breach of Contract

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View Full Version : Breach of Contract


Ron53
08-11-07, 10:18 AM
We purchased a home in October of 2005 at which time there were some repairs needed on rain gutters and central heating piping that were listed on the contract to be completed. As of today these repairs have not been done. I have made several calls to the selling realtor since the purchase and keep getting the same run around from them. They always say "those things haven't been done yet?" Then they say they will get them taken care of. Being a patient person I accept their response that they will have the repairs done and yet they continue to drop the ball. Is there a point in time that they will no longer be responsable for making good on the repairs that were clearly stated as to be done at the time of purchase? Or is it time to employ a lawyer? Or have the repairs done then bill them? Thanks in advance.


Ron53
08-11-07, 02:57 PM
Forgot to mention I am located in Kalifornia.

Jack the Contractor
08-11-07, 03:26 PM
What you need to do is to look at your earnest money contract. You have to see in writing who was responsible for the repairs. When I say responsible, I mean who is going to do the paying for them. If it states that the Realtor is the one who does the repairs, and pays for them, then I would say it is time to contact a lawyer. 2 years is a long time. Good Luck


bmwgolfguy
08-11-07, 07:57 PM
The moderator is correct. The longer you wait to press the issue, the worse off you may find yourself if you end up in court someday.

Go back to your Purchase and Sales Contract and determine who was to be responsible for the repairs. Typically, the seller ultimately foots the bill by either doing it themselves before you close, having the money to do it withheld in escrow from the seller until the job is done, or your reduce the price of the house for the estimated cost of repairs and have it done yourself.

You are facing a couple of legal problems here. The statute of limitations to sue on a contract is generally 6 years in most parts of the country. But you need to check your state laws on that.

There is also the legal doctine known as "laches" meaning even if the SofL hasn't run, you sat on your hands/laurels too long to make it inequitable now to somehow force the responsible party to act after you waited so long.

The other possible issue is the defense of "Merger". By this I mean, when you took the deed to the home, any prior agreements/understandings whether oral or written, (including the Purchase and Sales Agreement) merged into the deed, meaning that when you took the deed, all those other "understandings" you had about these repairs were either done to your satisfaction or you waived them! But legally they are now gone because the deed now controls the prior stuff.

I would immediately write a "demand letter" letter to both the realtor and seller giving them a deadline by which you want these things done. Send it certified mail return receipt requested. If you don't get a response or one not to your liking, get a Lawyer right away. Keep in mind however, you need to balance the need/cost of a lawyer to resolve this versus, just plain old taking your lumps/lesson learned and pay to have them fixed yourself.

I had a client (I am a Michigan lawyer) who had a $100,000.00 problem that needed fixing and he paid almost that much in legal fees just to get it done. For him tho, it was the prinicpal of the thing, not the money.

Good Luck!