Skip to main content

Sellers Refusing to Return Deposit Money -- Backed Out After Bad HOA

Hello All,

The other week we entered contract to buy an apartment. After sending deposit (>$50k), we entered into the HOA review period, which was 5 days. On/about the 2nd day, we requested additional information since the building's replacement fund had declined by nearly half over the past year, they had been underfunding the replacement fund and the included report slated the building's future replacement items were several millions of dollars over the next decade. After requesting an extension of time and additional information, including an updated report outlining future expected expenditures, they rejected the timeline extension. They did; however, supply more historical documents which only showed more negative operating income each year. On the morning of the 5th day, we stated we were backing out because we were uncomfortable with the HOA financials, in line with the HOA provision outlined in our contract, deeming it was the buyer's assessment to determine instability of the HOA and that deposit monies were to be returned immediately.

Sellers' attorney is stating our claims to terminate the deal are "baseless" and that his clients are owed for their "time and money," also claiming we were not legitimate buyers. Please note that during the period after we concluded the initial contract/rider review, we secured an interest rate for our mortgage, conducted the inspection (which checked out fine), put a notice to back out of our rent--all items supporting we had every intent to proceed.

Sellers' attorney is being belligerent, according to our attorney, and our attorney is recommending that for the purpose of not going to court, which could be expensive, we request our deposit monies back less a few thousand dollars.

The entire thing has been a huge distraction and I simply want my money back per the contract. Please help!

submitted by /u/LessStrength4
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/oay98d/sellers_refusing_to_return_deposit_money_backed/

Comments

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...

Obtaining a real estate license as a hobby?

Hello, I am 24 years old - 2 years out of college and I have my main job. I was looking to get a real estate license (in California if location matters) as a hobby/for fun since I like real estate ever since I was in high school. In the past 2 years, I would go to open house in the weekends to look at homes for fun. I don’t plan to practice real estate full time as I have my main job but I am curious are there any benefits to this? In the future, I plan to own multiple properties and have rentals, so I was wondering if getting a real estate license can help me with it? Thanks submitted by /u/AlohVera [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1f0qx9i/obtaining_a_real_estate_license_as_a_hobby/

Advice? Moved out of my primary residence and now renting

I moved out of the house I own in August 2021, I lived there for 8 years, I have been renting an apartment the past 3 years and renting out my house. My current tenant is moving out in September. I seem to have just missed the living 2 years out of 5 years rule for being exempt from capital gains tax and my house being a primary home. Any advice on what the best thing to do would be moving forward? Continue to rent out my house? I'm happy with my rental, but wouldn't mind buying another property down the road. I could sell my house down the road and try to do a 1031 exchange? Moving back in my house isn't ideal because it's an hour away from where I currently live. I could take a HELOC perhaps and try to buy another property and continue renting for the long term? I do have a 2.4% mortgage rate on the house so I don't mind keeping it for a while. Thanks for everyone's advice. submitted by /u/Ok-Top-7859 [link] [comments] source https://www.reddit.co...