Buyer should look at mold issue before filing suit

Q: We just bought a house. During the last rain, we discovered mold near the back door. We are very allergic to mold and definitely don’t want this house. I’m sure the seller and their broker knew it was there. How soon can we sue?

A: First of all, you’ll have to prove that they had actual knowledge of the defect and didn’t disclose it to you. That is not as easy as you think, and people have a way of forgetting, or just not knowing. Then if you sue, the seller may have no money to pay you. Then you’ve thrown good money after bad. How much would it cost to remediate the mold? It may provide a good result for a lot less money. Contact a good litigating counsel and discuss the pros and cons. Suing isn’t always the best answer.

Q: We are considering buying a house and would like the seller to leave everything in the media room as part of the deal. Can we do this?

A: Sure. There are a few issues you may want to consider, though. If the personal property is very expensive, the appraiser may back it out as not part of the value of the property. So the property may not appraise at the agreed value. You will need to transfer title at closing by a bill of sale. Be sure to include it in your contract.

Q: I agreed to buy a house “subject to” the first lien financing. I pay the seller, he pays the mortgage. No down payment, appraisal, loan approval or financing contingency. Is this too good to be true?

A: Yes. What if you make all of your payments, but the seller doesn’t make the loan payments? Are you sure the seller has title to the property? Are you sure the seller has the authority to sell? What if the lender finds out (it could declare a default in the loan)? Go hire some professional help on this one, as something may be off here.

Q: I recently signed a contract to sell my condominium unit. The buyer requested that I repaint the front door and repair the gutters, which I agreed to do; no big deal. When the painter arrived, someone from the condo association stopped him and said I couldn’t do any repairs to the door or gutters. Why can’t I do these minor repairs?

A: Your front door and gutters are common elements and must be repaired by the condo association. Both you and your buyer better read your condo declaration carefully. There may be other surprises in there for you.

To send us a question visit www.AskGeorge.net and select the “Ask A Question” button. Our answers to questions do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney. George Stephens is the broker of Stephens Properties. Charles J. Jacobus, J.D. is Board Certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law.