If roof work requested by buyer is completed and deal ends in “No Sale” for whatever reason, would i be liable for payment to roofing company?

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If roof work requested by buyer is completed and deal ends in “No Sale” for whatever reason, would i be liable for payment to roofing company?

Am selling a home. I received 2nd counteroffer where buyer increased sale price asking that i put on a new roof before closing for FHA and then the cost would be deducted from my (sellers) payoff at closing. They stipulated that work would not be ordered/completed until buyer has provided written notice of loan commitment. I believe this to be an unnecessary/risky venture causing me to become liable for costs if roof work has been done and for whatever reason, the closing did not occur (“No Sale“). My agent says i should “trust” all involved, they do this all the time. ?? Thank you.

Asked on June 1, 2009 under Real Estate Law, Oklahoma

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

I disagree.  The problem here is usually work is done post closing so that you are not out the money and you know the buyer is serious.  Otherwise, if you do such work before hand and the buyer insists it be done before hand, my recommendation is either a written agreement that buyer would be responsible for the payment if he or she or they don't go through with the purchase.  This probably wouldn't happen.


So, the only other recourse you have is outside the contract, called Detrimental Reliance.  You relied to your detriment and based on the promises/representations made by the potential buyer to fix your roof, so the buyer didn't buy, the buyer should be responsible.

 

 

 


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