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Rocky Escrow

My husband and I found a house we love near San Diego (first time home buyers). Our offer was accepted with a 45-day rent back. We have been told by the agents that our $50k lower offer was accepted by the sellers because of the rent back.

The sellers had accepted an offer that walked away just before accepting our offer but assured us that this was related only to a small septic problem. They also had a title inspection done just before listing. Without any mention, it seemed that the property was encroaching: the garage was built within the setback. We also noticed that the garage wasn’t on any of the initial paperwork and that the permit eventually produced shows it built outside of the set back. When we asked for permits and about the driveway which looked to be encroaching, the sellers were so “shocked” and had “no idea” about these problems. They were able to produce an survey that “the neighbor happened to drop by because they saw the for sale sign” that was completed a year ago (and they’ve never seen of course). This confirmed that the garage was encroaching on the set back and that the driveway was over the line. We think that the random title inspection was just them hoping for better news that what the survey showed.

They promised to pay for an easement with the neighbor who was initially onboard. An agreement was drafted but the neighbor now doesn’t want to sign. Our interest rate lock expires next week and we feel stressed. I feel really uneasy about the sellers staying in house for a free 45-day rent back period. I wish we hadn’t offered that. I wanted to make a late penalty addendum of $2k per day (it’s a $1M sale) but the realtors won’t even ask them. I feel the sellers have been very shady throughout the process and we don’t know what to do. Any levelheaded thoughts could help.

submitted by /u/Hopeful_Mammoth_5329
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source https://www.reddit.com/r/RealEstate/comments/uyxumx/rocky_escrow/

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