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Recourse options against buyer's agent?

10,370 Views | 30 Replies | Last: 7 yr ago by aggiebrad94
keebler
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AG
I am the seller, looking for advice general information...

Short version:
what recourse is available to me as the seller, if a buyer's agent conducts an unauthorized test or inspection on my property?

Long version:
We went under contract with potential buyer. Buyer has inspections and requests a certain test from a plumber. We say no, we're not comfortable with that test, we don't have any symptoms that even warrant conducting that test. Inspections proceed and some other issues are discovered. Buyer then terminates after inspections saying it needed work but was interested if we do some of the work. Why they didn't negotiate but terminate, I don't know.

We analyze the requests and issues and determine that in fact some work needs to be done regardless of who purchases the home. We have the work done, present all the work orders back to same buyer who is comfortable with work done and submits a new offer. We go into contract. Day after execution of contract, my agent receives a call from the buyer's agent saying they are at my house with the plumbers for an inspection and wanted to know what work was done. We had already forwarded all information to the buyer's agent. When my agent presses about what type of inspection is to be done, the buyer's agent says they will do the same test that we said no to the first time under contract. My agent is furious and rips into the buyer's agent.

In short, I was not informed they would be at my house, and i did not give authorization to perform this test. Is there any available recourse for me?

I have a good agent/broker and trust them, they are working out their recommendations and I'll be getting with them. At this point we don't know what impact this may or may/not have on the sale. Just wanted to get other agent's thoughts.

TIA
schwack schwack
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AG
Just curious, what's the test & why don't you want it?
Stan Crowch
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AG
Probably a hydrostatic
ATM9000
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AG
I don't understand why you are trying to punish the buyers agent. I'm sure the buyer is the one paying for the inspection and asking for it... Sounds like you have no deal unless the test is done.

So... Your recourse seems to be terminate the sales contract and tell the buyer to pound sand.
Kenneth_2003
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AG
Did the buyers agent notify you before they let the inspector in the first time? Or did you just find out later they let themselves in?
aggiemike89
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AG
They definitely should have let you know they were going to be at your house and doing the inspection. As far as denying a particular inspection, not sure why you would want to do that? The buyer may feel like there is something you are hiding. If you are in Texas, the contract says that the buyer can do inspections at reasonable times. It further says if it is a hydrostatic test then seller's permission must be in writing.
keebler
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AG
It is a hydrostatic pressure test.

I have no symptoms that warrant it.
I don't want them pulling a toilet in my house.
If they break something, screw something up I'm left with any damages
The test is being conducted by a company with a vested interest in doing repairs

I'm interested in recourse options against the buyer's agent because the agent is in the wrong. The agent is the one responsible for communication and operating under a code of ethics. The agent failed to notify me they would be at my house, and they conducted a test/inspection that I did not give consent for. (There have been other questionable issues from this buyer's agent, this one is potentially causing jeopardy to the sale)
SoTheySay
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S
The buyer has the right to do inspections.
The agent should have (and always should) follow showing instructions.
powerbiscuit
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quote:
It is a hydrostatic pressure test.

I have no symptoms that warrant it.
I don't want them pulling a toilet in my house.
If they break something, screw something up I'm left with any damages
The test is being conducted by a company with a vested interest in doing repairs

I'm interested in recourse options against the buyer's agent because the agent is in the wrong. The agent is the one responsible for communication and operating under a code of ethics. The agent failed to notify me they would be at my house, and they conducted a test/inspection that I did not give consent for. (There have been other questionable issues from this buyer's agent, this one is potentially causing jeopardy to the sale)
Do you want to sell a house or play lawyer games? Look at the big picture and your ultimate objective.
aggiemike89
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AG
quote:
The buyer has the right to do inspections.
The agent should have (and always should) follow showing instructions.
Agreed but again if the OP is in Texas, the contract states that if it's a hydrostatic test(which he says it was), the permission must be in writing to do the test.
ATM9000
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AG
quote:
It is a hydrostatic pressure test.

I have no symptoms that warrant it.
I don't want them pulling a toilet in my house.
If they break something, screw something up I'm left with any damages
The test is being conducted by a company with a vested interest in doing repairs

I'm interested in recourse options against the buyer's agent because the agent is in the wrong. The agent is the one responsible for communication and operating under a code of ethics. The agent failed to notify me they would be at my house, and they conducted a test/inspection that I did not give consent for. (There have been other questionable issues from this buyer's agent, this one is potentially causing jeopardy to the sale)


Again not sure what your complaint is re: the agent. Did they rip your toilet off prior to you giving permission? If not, your recourse would have been tell the buyers (who ultimately probably scheduled and hired the plumbers) to suck it. If you gave them permission and we're just inconvenienced then I see why you are pisses but it doesn't seem worthy of seeking real recourse.
Rustys-Beef-o-Reeno
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AG
sounds like you are hiding something. Even if that isn't the case, it's the perception
SoTheySay
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S
You're right. I forgot about that. And I would probably walk if I was denied.

Ignore my awful laugh/cry/clown. Fat finger.
Diggity
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AG
Did they want to do a hydrostatic test or just run a camera through the drainage system?
keebler
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AG
I am in TX, so it is required I give written consent to perform a hydrostatic test, which I did not give. I'm interested in what my options are.

The house is 60 years old with cast iron pipes. The system is functioning properly. As shown by the buyer's structural inspection and another plumber. During the buyer's first inspection the inspector recommended having a camera run through the pipes. Somehow this was translated by buyer or buyer's agent into a full leak detection, hydrostatic test. Which we said we were not comfortable with the hydrostatic, but were fine for them to run a camera. They ran the camera, found breaks in an old concrete sewer line that was missed when we replaced the main line 10 yrs ago (different story). Based on those findings we cut through our patio and dug up and replaced the concrete line, it was visibly broken, and obviously needed replacement.

This is our second time under contract with same buyer, it is this time where they just came out on their own and performed the hydrostatic test. We had agreed that they could bring back their inspectors to look at all the work that was done. we agreed again to a camera inspection. we never gave consent to hydrostatic.

If the buyer walks, what are my options? If it is contractual that I give permission to have the test performed but there is no enforcement behind it, then what's the point?
ATM9000
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AG
So did they actually perform the inspection without your permission? That I think is what everyone here is wondering or did they just show up wanting to do the test and they did it before you consented?

I'd think your real recourse would be against the plumber. Most places I thought a contractor needed something signed by the owner prior to pulling things off of the housing structure though and not a realtor.
AggiePlaya
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AG
If you are still in the option period they can walk no matter what, but if the option period is over then I don't believe they have an opt out for this.
powerbiscuit
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Is suing this realtor going to help or hurt your efforts to find a buyer?

What other realtor is going to show your property after it gets out that you sued one for doing some due diligence on a possible plumbing problem?
HomeFinderCody
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AG
The buyer's agent absolutely should not have been in your home without you knowing about it, much less had an inspector there. I'd contact the agent's broker and let them know that the agent was very unprofessional.

As for the rest of it....why not just allow the test? As stated above, if you really want to work with this buyer (I'm assuming you do since you went back to them a second time), then let them get comfortable with your home.
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keebler
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AG
Yes, the hydrostatic test was performed without my consent. My agent nor I knew they were at my house, My agent nor I knew the test was performed until after the fact.

Why did I not agree to the test?

The pipes are 60 years old and they (prior to the test certainly) were performing their function, documented by buyer's inspector.
Hydrostatic test does not test the pipes under normal conditions, even if you run every faucet in the house it will not come close to the strain and volume of water in a hydrostatic test.
There is risk that the strain of the test might further stress already aged pipes.

I will hazard a guess that 99% of 60 year old cast iron sewer lines will show a drop in water level on a hydrostatic test. 60 years of soil movement, potential tree roots etc will likely make most 60 year old systems not water tight, and that is not its function.

The intent in denying the test was to protect from potential damages that could be caused by the test itself.

The Fife
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I'm all for checking out a house before you buy it, but keep everything over the table instead of shooting for a time when you think no one will be home for a while, letting yourself in and testing things.
Martin Q. Blank
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quote:
The house is 60 years old with cast iron pipes.
Definitely going to fail. I can see why you don't want the test.
Diggity
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AG
I would be pissed too. Not sure what recourse you have if the deal blows up but you should let the agents broker know that they did the test after you specifically told them not too.
DallasAggie0
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I recommend locking your doors to prevent intruders from coming in.
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Furlock Bones
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AG
quote:
If the test damaged the pipes and you didn't not give permission you certainly have a claim for damages.

If the test did not damage the pipes what type of recourse would you think you are entitled to? How have you been damaged?

Seems like you could file a complaint about the unauthorized test and the state may admonish the realtor, but that doesn't provide any recourse know your favor.
it may not be financial recourse, but i'd certainly do it. that agent broke a contract.
Furlock Bones
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AG
oh if anything happens to the plumbing at all in the next 6 months, i'd be going after the buyer and the agent for sure.
The Fife
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quote:
I recommend locking your doors to prevent intruders from coming in.
It's not like realtors can't use the lock box to get the key and come in now.
BigPuma
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AG
quote:
quote:
I recommend locking your doors to prevent intruders from coming in.
It's not like realtors can't use the lock box to get the key and come in now.
I would consider pulling it at this point though.
The Collective
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AG
Man, that sucks. If it revealed a problem, would the seller then have to disclose the results of that test if this deal didn't work out?

It sounds like the buyer pretty much knows the answer and is looking for leverage to beat you up on price some more / seek repairs. That sucks. I would think they knew what they were bidding on when they made their recent offer...
Goodest Poster
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AG
quote:
Man, that sucks. If it revealed a problem, would the seller then have to disclose the results of that test if this deal didn't work out?

It sounds like the buyer pretty much knows the answer and is looking for leverage to beat you up on price some more / seek repairs. That sucks. I would think they knew what they were bidding on when they made their recent offer...


Yes, the seller will have to disclose.

I would have your agent send a letter to the Commission regarding the unwarranted entrance and hydro.

Bought plenty of houses like you describe and plumbing is always the silent terror that keeps you up at night. Future reference, get a really good policy rider on your homeowner insurance. Had my last two completely paid for (minus deduct ).

Good luck.
.
aggiebrad94
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AG
Did the test fail? What's the status of the buyer?
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