Real Estate Investing

Every single day in real estate there are new challenges to address.  If it’s not problems from a home inspection, it could be appraiser issues, dealing with another agent who is either uneducated or overly prideful, or a myriad of other situations.

Today I talked with another agent who told me he received an upsetting phone call from a buyer’s agent he worked with over a year ago.   Last year, the transaction went smoothly from contract to close.  But there was a little item - a hidden glitch if you will - that has reared its ugly head.

The buyer’s agent said the storage building in the back yard had not been paid off, as promised in the contract by the seller.  Now, the company that financed the little shed is in the process of repossession and showed up this week with a truck to haul it away.   I think you could put “Shed Repo Man” in the top 10 list of jobs I do not want.

What is the liability for the agent?  None.  The liability lays with the former homeowner (seller) who in the contract agreed to pay off any liens or leased items prior to closing.  As agents, we review the property condition disclosure form to see if the “YES” is checked for the item that states, “Is any system, equipment or part of the property being leased?”  (This does include a lease purchase agreement for a storage building!).  In the actual contract for the purchase and sale of a home, it specifically outlines who is to pay for leased items prior to closing.

So the seller from a year ago could clearly face some litigation.  Of course, I’m NOT an attorney so can’t say for sure how it would all play out.  I just know if I was to sell, I’d make sure everything that was to remain with the property would paid so it wouldn’t come back to bite me later.