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Sale of House Issues - Plumbing Repair

2,412 Views | 23 Replies | Last: 5 yr ago by nonameag99
TXAGFAN
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I am selling my home and for various reasons (time, I'm not living in area, etc.) I was trying to get it sold quickly with minimal fuss. I didn't want to fix foundation, then fix sheetrock, paint, carpet, etc. It's more than I have time for and I was willing to leave some money on the table.

My realtor happened to know an investor who was interested and we agreed upon a price I was ok with to meet my goals and the only real condition of sale was to repair the foundation and any damage caused to plumbing. I knew foundation needed to be repaired so I received an estimate for $6k and proceeded with the offer. The plumber hired by Foundation Company for warranty purposes came out and while I passed the freshwater pressure test the initial test indicated I have a leak in the sewage lines. This is a reputable company in town that I have friends/family with good results.

They were unavailable to do the work for 2 weeks so I've since had two plumbers out to validate that test and attempt to isolate the damage. The first was pretty unprofessional and just left, no charge. The second really seemed to try and do the test, but there is a lot of buildup in the lines which we saw in cameras. He was unable to successfully reperform the test by the foundation company's plumbers and said he thinks I need a repipe, even thought he can't say 100% certain there is damage.

So now I'm sitting here trying to figure out my options. I'm resigned to the fact I'll need to do more work, but I'd like some help with following:
1) Anyone have a GREAT plumber in Dallas who will try and reperform this test? The plumber today said only way he could be 100% certain is if he cut and capped the line in the yard to "close" the system, but he acted like it was the dumbest idea ever.
2) Any thoughts on my buyer? I'm not wild about sinking $15k of what should have been profits into the house. At this point feel like I should cancel the contract if he doesn't want to share some of the burden, fix it up, and get a higher price. My realtor, representing both sides - dumb, said he could sue me for damages due to nonperformance.

Appreciate any insight or cost estimates, it's an 1800 sq ft ranch with 2 bathroom, laundry, and kitchen.
Martin Q. Blank
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Sounds like you have a stellar realtor.
jt2hunt
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The original plumber can do the work?
AggiePlaya
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Martin Q. Blank said:

Sounds like you have a stellar realtor.
How is the difference in plumber opinions the Realtors fault? If you really are blaming a Realtor for this, that's just straight bashing on your part
Mas89
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Is your home on a concrete slab with beams under the slab? What is the age of the home?
Assuming so, there should be a clean out plug between the home and the sewer main and they would install a removable plug downstream of the opening and run the test camera into the home upstream after filling the system with water (hydrostatic test). If the camera finds problems or too much grease/debris in the system, the plumber may need to pull the toilets and run the camera down to see the problem. A leak detection co is best to perform this test and needed repair imo.

If the leak is under the slab which is common before and after foundation repairs, will probably need to tunnel under the home to correctly fix the problem. Foundation repai company can tunnel and then get the plumber out to fix the broken pipe. Expect $200 per foot for tunneling. Can get expensive.

After the leak is repaired then the buyer will want another hydrostatic test to prove there are no other leaks.

Any realtor worth their fee should know this process well and know who to call to get the job done correctly and ASAP.
Martin Q. Blank
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AggiePlaya said:

Martin Q. Blank said:

Sounds like you have a stellar realtor.
How is the difference in plumber opinions the Realtors fault? If you really are blaming a Realtor for this, that's just straight bashing on your part
1. "Representing" buyer and seller at once.
2. Bringing in his investor friend instead of putting it on the MLS.
3. Allowing the foundation to be repaired as part of the contract instead of a sellers credit.

Shall I go on?
Ragoo
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Martin Q. Blank said:

AggiePlaya said:

Martin Q. Blank said:

Sounds like you have a stellar realtor.
How is the difference in plumber opinions the Realtors fault? If you really are blaming a Realtor for this, that's just straight bashing on your part
1. "Representing" buyer and seller at once.
2. Bringing in his investor friend instead of putting it on the MLS.
3. Allowing the foundation to be repaired as part of the contract instead of a sellers credit.

Shall I go on?
should have been and "as is" sale
TXAGFAN
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AggiePlaya said:

Martin Q. Blank said:

Sounds like you have a stellar realtor.
How is the difference in plumber opinions the Realtors fault? If you really are blaming a Realtor for this, that's just straight bashing on your part
I don't blame my realtor. He brought me a qualified buyer that allowed me to sell quickly. Aside from this plumbing issue, which is not his fault, this would have gone seamlessly.

My only frustration is not with my realtor (we're friendly, he has purchased homes with other family members and I would use him when I buy again in Dallas), but with the fact he is representing both sides of the deal and as a result it's IMPOSSIBLE for me to not think he's compromised at least somewhat at a base level.

I am having a hard time getting comfortable with the right path here to be honest. For example, if I was selling home in a normal way I think we would have compromised on this repair since they would receive a benefit from a full repipe. The problem is this didn't come up in option period and I "agreed" to repair damage from foundation repair. Only problem is I never anticipated this large of a repair and I don't know that me coming out of pocket for $15k-$20k is right. I will have to make the repair no matter what to sell, just feel like I won't be losing my ass if I list on market in a traditional way after fixing things.
TXAGFAN
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Ragoo said:

Martin Q. Blank said:

AggiePlaya said:

Martin Q. Blank said:

Sounds like you have a stellar realtor.
How is the difference in plumber opinions the Realtors fault? If you really are blaming a Realtor for this, that's just straight bashing on your part
1. "Representing" buyer and seller at once.
2. Bringing in his investor friend instead of putting it on the MLS.
3. Allowing the foundation to be repaired as part of the contract instead of a sellers credit.

Shall I go on?
should have been and "as is" sale
Yes...that seems obvious now. At the time it seemed like the path of least resistance since realtor agreed lender were going to require appraisal with evidence foundation was repaired given cracks inside home Sheetrock. In the end appraiser never walked the inside of home.

Also, I didn't think there would be an issue since I had the hydrostatic test 3 years ago without issue.
4lilmonkeys
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TXAGFAN said:

AggiePlaya said:

Martin Q. Blank said:

Sounds like you have a stellar realtor.
How is the difference in plumber opinions the Realtors fault? If you really are blaming a Realtor for this, that's just straight bashing on your part
I don't blame my realtor. He brought me a qualified buyer that allowed me to sell quickly. Aside from this plumbing issue, which is not his fault, this would have gone seamlessly.

My only frustration is not with my realtor (we're friendly, he has purchased homes with other family members and I would use him when I buy again in Dallas), but with the fact he is representing both sides of the deal and as a result it's IMPOSSIBLE for me to not think he's compromised at least somewhat at a base level.

I am having a hard time getting comfortable with the right path here to be honest. For example, if I was selling home in a normal way I think we would have compromised on this repair since they would receive a benefit from a full repipe. The problem is this didn't come up in option period and I "agreed" to repair damage from foundation repair. Only problem is I never anticipated this large of a repair and I don't know that me coming out of pocket for $15k-$20k is right. I will have to make the repair no matter what to sell, just feel like I won't be losing my ass if I list on market in a traditional way after fixing things.
Okay wait.

This didn't come up during the option period? So...at what point did it come up and why did you agree to make the repair?

You're on the hook at this point. As a seller, if you are under contract, you can't terminate without opening a pretty big can of worms here. Even if you could re-list, you'd have to disclose the leak and either fix it OR come down off the price to cover the amount for the repair. At this point, I don't really see a lot of other options here, but it's possible someone else has a different perspective?

Someone mentioned hydrostatic testing. There is a TREC addendum for that which can protect you from having to cover the damages. In your situation, I would absolutely insist on using it and require the buyer to cover the damages to protect you further.
TXAGFAN
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I disclosed foundation issues, they were obvious and I had a previous estimate several years ago so I wasn't going to lie.

As a condition of sale I agreed to have foundation repaired (I already knew the cost estimate) and to repair damages to plumbing resulting from the foundation fix.

I've read the agreement and I'm no lawyer, just a pretend one since I'm a CPA. I'll be honest, I don't see any cure to get me out of the agreement, but at same time I don't see that he can compel me to fix the plumbing. In the end, what would his damages be to sue me or what's the likely outcome? I haven't been wasting his time.

As far as future sale, i agree will have to fix or disclose. Part of me wants to say "f*** it - paint, put in the carpet, and find a renter" since sewer lines may not even be a problem.
TXAGFAN
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4lilmonkeys
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TXAGFAN said:

I disclosed foundation issues, they were obvious and I had a previous estimate several years ago so I wasn't going to lie.

As a condition of sale I agreed to have foundation repaired (I already knew the cost estimate) and to repair damages to plumbing resulting from the foundation fix.

I've read the agreement and I'm no lawyer, just a pretend one since I'm a CPA. I'll be honest, I don't see any cure to get me out of the agreement, but at same time I don't see that he can compel me to fix the plumbing. In the end, what would his damages be to sue me or what's the likely outcome? I haven't been wasting his time.

As far as future sale, i agree will have to disclose. Part of me wants to say "f*** it - paint, put in the carpet, and find a renter" since sewer lines may not even be a problem.
Ah. Okay that makes sense.

So, I'm not a lawyer either. But your realtor could absolutely sue you for non-performance and ask for their commission. And, if you agreed to make those repairs in writing (text, email, contract) then the state is probably going to say you're on the hook for it too. If that's the case then you're better off just taking the hit and moving on.

Mas89 really gave some great advice. I think your best bet is following that, asking the buyer to cover any possible damages from hydrostatic testing (you can search for the addendum online and read the verbiage, it's pretty straightforward). Probably not what you want to hear, but it's just one of those things.

*Not a lawyer. Do not represent you. Simply trying to give advice and cover my behind.
TXAGFAN
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4lilmonkeys said:

TXAGFAN said:

I disclosed foundation issues, they were obvious and I had a previous estimate several years ago so I wasn't going to lie.

As a condition of sale I agreed to have foundation repaired (I already knew the cost estimate) and to repair damages to plumbing resulting from the foundation fix.

I've read the agreement and I'm no lawyer, just a pretend one since I'm a CPA. I'll be honest, I don't see any cure to get me out of the agreement, but at same time I don't see that he can compel me to fix the plumbing. In the end, what would his damages be to sue me or what's the likely outcome? I haven't been wasting his time.

As far as future sale, i agree will have to disclose. Part of me wants to say "f*** it - paint, put in the carpet, and find a renter" since sewer lines may not even be a problem.
Ah. Okay that makes sense.

So, I'm not a lawyer either. But your realtor could absolutely sue you for non-performance and ask for their commission. And, if you agreed to make those repairs in writing (text, email, contract) then the state is probably going to say you're on the hook for it too. If that's the case then you're better off just taking the hit and moving on.

Mas89 really gave some great advice. I think your best bet is following that, asking the buyer to cover any possible damages from hydrostatic testing (you can search for the addendum online and read the verbiage, it's pretty straightforward). Probably not what you want to hear, but it's just one of those things.

*Not a lawyer. Do not represent you. Simply trying to give advice and cover my behind.
I'm not worried about realtor suing, I'm concerned about the buyer.
4lilmonkeys
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If you agreed to do it in writing, then yes I believe the buyer can sue as well.
TXAGFAN
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Let's not focus too much on the suing. I really just want to get this place sold even if it costs me haha, I just don't like the idea of fixing a problem no one can confirm I actually have.
Diggity
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I'm not really sure how anyone came to the conclusion that the hydrostatic testing was the culprit for any of this damage.
TXAGFAN
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Diggity said:

I'm not really sure how anyone came to the conclusion that the hydrostatic testing was the culprit for any of this damage.
Me either, I didn't say it caused any damage.
Diggity
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Understood.

You already seem to realize this, but the biggest issue you have is agreeing to "open ended" repairs. Nothing good tends to come from that. Best to settle on a cash contribution or a defined repair. Otherwise, you can find yourself down a very unpleasant rabbit hole.

It's entirely possible this may have been the likely end in any case, but you would have at least had more say in the process.
TXAGFAN
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Diggity said:

Understood.

You already seem to realize this, but the biggest issue you have is agreeing to "open ended" repairs. Nothing good tends to come from that. Best to settle on a cash contribution or a defined repair. Otherwise, you can find yourself down a very unpleasant rabbit hole.

It's entirely possible this may have been the likely end in any case, but you would have at least had more say in the process.
Agree. I assumed it would pass and realtor seemed to act like this was normal had I agreed to foundation in the option period rather than on front end. I did have the same test several years ago when I had a slab leak (freshwater, but they tested both) - I just never imagined a repair of undetermined magnitude. My TREC contract says house sold as is, but in the additional terms realtor indicated I would repair damage from foundation repair. There is NO way they can prove it's foundation repair related. It's not just about the money, I'm willing to give some - just not $15k+ to repair. I think I'll tell realtor I'm willing to make a concession to close on time, but I'm not proceeding with repairs at this time.

Hopefully buyer will agree or just move on. Not sure if this will be allowed under their financing.

Good news (?) is I'm not selling this house to buy another and he's an investor, not a first time homebuyer or something.
nonameag99
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American leak detection and church services do hydro testing

I have had foundation repaired in two houses. Issue was with cast iron 90s that rusted out.
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TXAGFAN
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nonameag99 said:

American leak detection and church services do hydro testing

I have had foundation repaired in two houses. Issue was with cast iron 90s that rusted out.
Did you have to repipe?
TXAGFAN
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In case anyone cares, we agreed to a concession and will be closing later next week. I'm happy with resolution.
Diggity
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Glad to hear it's working out
nonameag99
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TXAGFAN said:

nonameag99 said:

American leak detection and church services do hydro testing

I have had foundation repaired in two houses. Issue was with cast iron 90s that rusted out.
Did you have to repipe?
I re-pipe all underground sanitary from foundation to the street
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