This is not about a client that I represented but it is a true story that happened in 2018.
The buyers told me about their home purchase story that took place outside of San Antonio.
First was the meeting with the loan agent. The long list of documents, W2’s, Tax Returns, 10099’s, Profit and Loss statements, receipts and finally a Pre-Approval from the lender.
Next the list of available homes in our approved price range, but not much in my neighborhood, most in a less expensive neighborhood, which meant different schools for the kids.
But wait, a For Sale sign goes up down the street, it is much smaller than our rental home, but it does look cute and it’s in our neighborhood. The asking price is at the top of our approval range, but it’s in our neighborhood.
We go with our agent to see it. It looks a little rough, we see stains on the ceilings, probably the roof leaks, but we can negotiate, right?
Our real estate agent says yes, we can.
The seller description remarks say, “recently remodeled”
We negotiate, agree on a price and move in.
Yes, we know the roof needs attention, but we will fix that before it rains.
3 WEEKS AFTER CLOSING ESCROW
Our Roof Contractor went to the City to get permits so we can get a new roof installed.
The City Compliance Manager told our Contractor, sorry no permits on this address until all violations are corrected.
We had to go to the City and was given a copy of violations on our property from more than a year back.
We were told we had 30 days to correct all violations, which included removing one restroom that is not permitted.
The City has been sending notices to the former owner to correct the non-permitted addition to this property without compliance for over a year and now we have 30 days to comply.
Of course, we called our agent, and the agent tells us, “checking permits is not an agent’s job, sorry.”
We contact the Listing agent and he says its not his job. He will not give us the Seller’s forwarding address, but we find documents from the Title closing with an address.
We contact the Seller and are told “I’m sorry for your problem, talk to my agent.” We got nowhere!
To remove the non-permitted restroom is going to be expensive and leave us with only one restroom.
The non-permitted restroom cannot be permitted the way it was constructed per the City.
So, we need to remove it, get permits and reconstruct a new restroom or survive with the only permitted restroom.
And the removal needs to be within 30 days.
So, we go talk to a real estate attorney and we are told we have a good case because the Seller was aware the restroom did not have a permit and did not disclose it on the Seller’s Disclosure.
But the attorney wants too much money to represent us.
Small Claims Court
Our Contractor’s estimate is about $10,000 for the removal plus a newly permitted restroom, so if we would take the seller to small claims court, we could get $10,000 back.
Day at Court
With all the closing documents and a copy of the seller’s disclosure in hand we arrive at court. Of course, our real estate agent wanted no part of this action, but the seller did show up with her real estate agent.
We though it would be an easy win, because the Seller did lie on the Seller’s Disclosure.
We get sworn in.
We present our case first. We had letters from the City and proof from the City that the Seller had appeared before the City but never complied with the City’s requests. We have the Seller’s Disclosure and it did not state any unpermitted additions.
The Seller’s agent on behalf of the seller presented their side. The seller’s agent presented documentation that homes were selling as much as $30,000 higher for a similar sized home in the neighborhood than what we (buyers) paid for the home, so it was unfair for the Seller to pay the buyers any money.
The judge ruled in favor of the Seller.
Bottom line:
It is important for to check with City for permits before buyers purchase a home and you never know the outcome if you go to court, so be careful when you purchase a home and work with a reputable agent.