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  • Contract Nebraska

    I need help. We entered into a Purchase Agreement with another party giving a $500 Earnest Deposit. At that time, we went through the house, it was appealing, clean and everything seemed in order. We went back through the house after the owners had moved out - and prior to our final walkthrough after our realtor contacted their realtor and told him of our plans to walk through it. When we walked into the house (and yes the air conditioner had been running the whole time), we almost fell over with the smell of urine. The owners had allowed their dogs to pee all over the carpet in a lower bedroom as well as bedrooms on the main floor. They had removed the good refrigerator and replaced it with a frig they had their beer in down in the basement - full of dog hair, needed defrosting, etc. Also, the dormer bedroom had a 6 inch or more dip in the floor that was not disclosed. The reason we liked the house was due to an extra garage "workshop" that we were unable to gain access to during our initial visit. However, when walking into after the owners moved out - we realized it would have to be bull-dozed you could actually see daylight through the cracks in the walls - this was all covered up by a huge RV - so we were not able to visually see the issue. We also found the foundation had new concrete patches in the basement, with nothing in the disclosure and this had been hidden by boxes and stored items during our initial walk through. We were to close on the 18th of August, but told them we were not buying it on the 28th of July through an amended purchase agreement. They are trying to make us pay them (not through an attorney) $3000 for damages. This is the first we have heard from them since we told them we were not buying the house, and it is still on the MLS. HELPPPPP
    Last edited by harriet311; 08-31-2006, 08:45 AM.

  • #2
    In the revised purchase agreement we stated that we were not going to purchase the home due to non-disclosure of these problems. They were not on the disclosure statement. Not only that - but this home has remained on the market and available during the entire time of our contract because it was contingent on our selling our home. They already had a bridge loan applyed for before we had even written the purchase agreement. They never responded to our revised agreement stating they were going to take any action to rectify any situation that we addressed. The realtor told us he would buy us a new frig - and the lady went in and cleaned the carpet - but they have never asked what they could do to remedy the situation. In the meantime - we were homeless - we had sold our home and had to be out immediately. Now we are living in the basement of our in-laws. These people deceived us, tried to lie their way out of it (we left the better frig), etc. After the issues we uncovered - which they had blatently hidden - we are the injured party - not them. They have never had that house off the market. Does that make sense? Also - our contract says that if the house is unhealthy -hello - leaving pee stained carpets for over a week and letting them sit on wooden floors - to seep into the wood and mold everything. Their remedy was just to clean the carpet by hand? No - I don't think that is a remedy. They have never asked to keep the contract alive, and they were given 24 hours to respond. They never responded. We don't feel as if we are liable for anything. Don't you agree?
    Last edited by harriet311; 08-31-2006, 09:25 AM.

    Comment


    • #3
      I would contact a real estate attorney, to ask if the non disclosure that left you homeless, is enough to sue THEM for. There are discloser laws for reasons like this. They decieved you, what did the report show, when the house was appraised (or was it)? I am not aware of the laws pertaining to this, I only know what I have heard from those selling thier house. They have an appraisor let them know what the market value is, and if I understand it right, it is the appraisors job to find all things wrong with the house, to get a proper appraisal on it. Maybe just getting a lawyer to threaten with a countersuit, they will drop it.

      Comment


      • #4
        Originally posted by demartian
        It is not the job for the person doing the appraisal to find structural or other damage, just to show the actual value of the house to the bank. This is also not an exact art and things have been known to appraise for more or less than buyers will pay for them.

        If you elected to have an inspection done, things such as this should be on your inspection report. Since that is optional and may have also been limited to what they could see, it may not matter either.

        Do go to a local real estate attorney though and have them go over the contract with you.
        Thanks for the information, I wasn't sure how precise they have to be, all I know was in my parents situation, that since they found dry rot, they had to lower the value of the home, so I wasn't sure how much "damage", they are usually required to find to give an appraisal. It is true that they could have hid problems from the appraisor, just as easily, as from the potential buyers. I wonder if they hid it from the real estate company that put it up for sale for them? Would that effect thier disclosure responsibilities, if they were also unaware of some of the problems (like the ones covered by the boxes)? We can only assume here OP, please have a local real estate attorney go over the contract with you as the previous poster stated. Good luck to you, sorry you are going through this!

        Comment


        • #5
          I found this site

          76-2,120
          Written disclosure statement required, when; contents; delivery;
          liability; noncompliance; effect; State Real Estate Commission;
          rules and regulations.


          (1) For purposes of this section:
          (a) Ground lease coupled with improvements shall mean a
          lease for a parcel of land on which one to four residential
          dwelling units have been constructed;
          (b) Purchaser shall mean a person who acquires,
          attempts to acquire, or succeeds to an interest in land;
          (c) Residential real property shall mean real property
          which is being used primarily for residential purposes on which
          no fewer than one or more than four dwelling units are located;
          and
          (d) Seller shall mean an owner of real property who
          sells or attempts to sell, including lease with option to
          purchase, residential real property, whether an individual,
          partnership, limited liability company, corporation, or trust. A
          sale of a residential dwelling which is subject to a ground lease
          coupled with improvements shall be a sale of residential real
          property for purposes of this subdivision.
          (2) Each seller of residential real property located in
          Nebraska shall provide the purchaser with a written disclosure
          statement of the real property's condition. The disclosure
          statement shall be executed by the seller. The requirements of
          this section shall also apply to a sale of improvements which
          contain residential real property when the improvements are sold
          coupled with a ground lease and to any lease with the option to
          purchase residential real property.
          (3) The disclosure statement shall include language at
          the beginning which states:
          (a) That the statement is being completed and delivered
          in accordance with Nebraska law;
          (b) That Nebraska law requires the seller to complete
          the statement;
          (c) The real property's address and legal description;
          (d) That the statement is a disclosure of the real
          property's condition as known by the seller on the date of
          disclosure;
          (e) That the statement is not a warranty of any kind by
          the seller or any agent representing a principal in the
          transaction;
          (f) That the statement should not be accepted as a
          substitute for any inspection or warranty that the purchaser may
          wish to obtain;
          (g) That even though the information provided in the
          statement is not a warranty, the purchaser may rely on the
          information in deciding whether and on what terms to purchase the
          real property;
          (h) That any agent representing a principal in the
          transaction may provide a copy of the statement to any other
          person in connection with any actual or possible sale of the real
          property; and
          (i) That the information provided in the statement is
          the representation of the seller and not the representation of
          any agent and that the information is not intended to be part of
          any contract between the seller and purchaser.
          (4) In addition to the requirements of subsection (3)
          of this section, the disclosure statement shall disclose the
          condition of the real property and any improvements on the real
          property, including:
          (a) The condition of all appliances that are included
          in the sale and whether the appliances are in working condition;
          (b) The condition of the electrical system;
          (c) The condition of the heating and cooling systems;
          (d) The condition of the water system;
          (e) The condition of the sewer system;
          (f) The condition of all improvements on the real
          property and any defects that materially affect the value of the
          real property or improvements;
          (g) Any hazardous conditions, including substances,
          materials, and products on the real property which may be an
          environmental hazard;
          (h) Any title conditions which affect the real
          property, including encroachments, easements, and zoning
          restrictions; and
          (i) The utility connections and whether they are
          public, private, or community.
          (5) The disclosure statement shall be completed to the
          best of the seller's belief and knowledge as of the date the
          disclosure statement is completed and signed by the seller. If
          any information required by the disclosure statement is unknown
          to the seller, the seller may indicate that fact on the
          disclosure statement and the seller shall be in compliance with
          this section. On or before the effective date of any contract
          which binds the purchaser to purchase the real property, the
          seller shall update the information on the disclosure statement
          whenever the seller has knowledge that information on the
          disclosure statement is no longer accurate.
          (6) This section shall not apply to a transfer:
          (a) Pursuant to a court order, a foreclosure sale, or a
          sale by a trustee under a power of sale in a deed of trust;
          (b) By a trustee in bankruptcy;
          (c) To a mortgagee by a mortgagor or successor in
          interest or to a beneficiary of a deed of trust by a trustor or
          successor in interest;
          (d) By a mortgagee, a beneficiary under a deed of
          trust, or a seller under a land contract who has acquired the
          real property at a sale conducted pursuant to a power of sale
          under a deed of trust, at a sale pursuant to a court-ordered
          foreclosure, or by a deed in lieu of foreclosure;
          (e) By a fiduciary in the course of the administration
          of a decedent's estate, guardianship, conservatorship, or trust
          except when the fiduciary is also the occupant or was an occupant
          of one of the dwelling units being sold;
          (f) From one or more co-owners to one or more other
          co-owners;
          (g) Made to a spouse or to a person or persons in the
          lineal line of consanguinity of one or more of the transferors;
          (h) Between spouses resulting from a decree of
          dissolution of marriage or a decree of legal separation or from a
          property settlement agreement incidental to such a decree;
          (i) Pursuant to a merger, consolidation, sale, or
          transfer of assets of a corporation pursuant to a plan of merger
          or consolidation filed with the Secretary of State;
          (j) To or from any governmental entity;
          (k) Of newly constructed residential real property
          which has never been occupied; or
          (l) From a third-party relocation company if the
          third-party relocation company has provided the prospective
          purchaser a disclosure statement from the most immediate seller
          unless the most immediate seller meets one of the exceptions in
          this section. If a disclosure statement is required, and if a
          third-party relocation company fails to supply a disclosure
          statement from its most immediate seller on or before the
          effective date of any contract which binds the purchaser to
          purchase the real property, the third-party relocation company
          shall be liable to the prospective purchaser to the same extent
          as a seller under this section.
          (7) The disclosure statement and any update to the
          statement shall be delivered by the seller or the agent of the
          seller to the purchaser or the agent of the purchaser on or
          before the effective date of any contract which binds the
          purchaser to purchase the real property, and the purchaser shall
          acknowledge in writing receipt of the disclosure statement or
          update.
          (8) The seller shall not be liable under this section
          for any error, inaccuracy, or omission of any information in a
          disclosure statement if the error, inaccuracy, or omission was
          not within the personal knowledge of the seller.
          (9) A person representing a principal in the
          transaction shall not be liable under this section for any error,
          inaccuracy, or omission of any information in a disclosure
          statement unless that person has knowledge of the error,
          inaccuracy, or omission on the part of the seller.
          (10) A person licensed as a salesperson or broker
          pursuant to the Nebraska Real Estate License Act shall not be
          required to verify the accuracy or completeness of any disclosure
          statement prepared pursuant to this section, and the only
          obligation of a buyer's agent pursuant to this section is to
          assure that a copy of the statement is delivered to the buyer on
          or before the effective date of any purchase agreement which
          binds the buyer to purchase the property subject to the
          disclosure statement. This subsection does not limit the duties
          and obligations provided in section 76-2418 or in subsection (9)
          of this section with respect to a buyer's agent.
          (11) A transfer of an interest in real property subject
          to this section may not be invalidated solely because of the
          failure of any person to comply with this section.
          (12) If a conveyance of real property is not made in
          compliance with this section, the purchaser shall have a cause of
          action against the seller and may recover the actual damages,
          court costs, and reasonable attorney's fees. The cause of action
          created by this section shall be in addition to any other cause
          of action that the purchaser may have. Any action to recover
          damages under the cause of action shall be commenced within one
          year after the purchaser takes possession or the conveyance of
          the real property, whichever occurs first.
          (13) The State Real Estate Commission shall adopt and
          promulgate rules and regulations to carry out this section.




          Source:
          Laws 1994, LB 642, 1; Laws 2002, LB 863, 1.




          Cross Reference:
          Nebraska Real Estate License Act,see section 81-885.47.



          Annotations:
          Disclosure statements under this section are required for the
          sale of any property containing at least one and not more than four
          dwelling units. A seller of residential property who fails to
          provide a disclosure statement pursuant to this section is not
          strictly liable for unknown defects. R.J. Miller, Inc. v.
          Harrington, 260 Neb. 471, 618 N.W.2d 460 (2000).
          A seller is not liable for any error, inaccuracy, or omission in a
          disclosure statement which was not within the seller's personal
          knowledge. Thus, violations of this section must be done knowingly.
          Burgess v. Miller, 9 Neb. App. 854, 621 N.W.2d 828 (2001).
          The buyer's knowledge of undisclosed damage in a cause of action
          for failure to provide a disclosure statement is relevant on the
          extent of damages, but does not provide a total defense.
          Burgess v. Miller, 9 Neb. App. 854, 621 N.W.2d 828 (2001).
          Seller violations of this section must be done knowingly.
          A purchaser's knowledge of undisclosed damages is relevant
          to damages, but does not provide a total defense. Bohm v. DMA
          Partnership, 8 Neb. App. 1069, 607 N.W.2d 212 (2000).
          This section provides a purchaser with a new cause of action
          in addition to other common-law and statutory causes of action
          available to purchasers of real estate.
          Although a disclosure statement is not a warranty, a purchaser
          may rely on the information contained in the disclosure statement.
          Information provided in disclosure statements are
          representations of the seller, not the seller's agent, and such
          information is not intended to be part of any contract between
          the seller and purchaser. Bohm v. DMA Partnership, 8 Neb. App. 1069,
          607 N.W.2d 212 (2000).

          Comment


          • #6
            hmmm

            Look at #5.

            Comment


            • #7
              Yes

              and #8 as well. Says if it was not to their knowledge, they are not responsible. Hiding behind boxes could well be beyond their knowledge.

              Comment


              • #8
                Originally posted by demartian
                and #8 as well. Says if it was not to their knowledge, they are not responsible. Hiding behind boxes could well be beyond their knowledge.
                Well, I hope the OP can use this page I found. Please still have a real estate lawyer examine your contract.

                Comment

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