What does a transaction reversal look like?

After we bought our house we had some major issues. Long story short we sent out a demand letter to the seller, our agent and their brokers. We received the option of having them make the repairs needed (which are extensive: new septic system, new roof, major foundation work, new windows, irrigation system, rain gutters, termite treatment and damage repair, permitting additions that were not to code) OR reversing the transaction altogether. What does a reversal look like? Will we get back everything we've come out of pocket for (down payment, payments to date, escrow $ etc)?

Update:

We had full inspections done prior to purchase, the seller lied in his disclosures, we were able to prove this, hence the offer to make repairs or reverse the transaction.

Update 2:

Only looking for an answer as to what a reversal looks like financially. We have already gone through the full legal process here and my options are A. Repairs to be made or B. a Reversal. NOT looking for feedback or comments on if this is possible.

12 Answers

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  • lucy
    Lv 7
    6 months ago
    Favorite Answer

    https://realestate.findlaw.com/buying-a-home/home-...

    Some things an inspector (should) have found with the inspection. But per the site attached, can only get a refund of the inspection from the inspector. The termites, if I remember, (you) should have done prior to the house purchase, since it is not un-common that someone could have termites and not be aware they have them.

    Rain gutters and windows should be known/seen. The roof, how old was it? And yes, if a roof leaks, then depending on where the leak is, maybe known or (not), since leaks will travel and maybe not appear, till later.

    But some of your complaints are legitimate, like code, septic, irrigation etc.

    I sold my house last year "as is" with (no) inspection and I remember the disclosure and I stated in many cases I was aware, or (could) be problems, thus not be on the hook.

    But, the biggest problem you have is that you want out (plus) want to be compensated in (addition). Your prior question, was in asking for pain and suffering or "inconvenience". Now I know (nothing) about real estate, but if this was a homeowners claim, like fire or flood, then the insurance would pay to fix/repair, and in the process they would pay "loss of use", which is where you would live, a rental till the repairs are done and able to come back into the house.

    To come out (ahead), in other words, a refund of deposit, escrow etc should be what you should want and (out) of the house. Your monthly payments? They could argue, if not there, then you would be paying a mortgage or rent someone else during that time.

    $87,000 in damages is a lot and this could take a lot of time, or the seller could have problems in getting financing for that amount.

    You might want to re-post your question in Y/A real estate for more agents who may have come across this.

  • Eva
    Lv 7
    6 months ago

    That's why you have a home inspected BEFORE you close on it.

  • 6 months ago

    In 33 years of mortgage lending I have never heard of this. Did the appraiser or home inspector not catch any of this?

    • Tibbalicious6 months agoReport

      It wasn't a matter of the inspector missing items, it was a combination of the seller intentionally hiding them, and our agent misleading us. The brokers have been brought in (through legal action) and are trying to do right. Since a reversal is so rare I have been unable to find out the details.

  • 6 months ago

    If YOUR inspector missed something (that he should have found) then you need to look to the inspector. All contract conditions are merged at the closing.

    Edit:In order to force the seller to take the property back, you will have to get an court order (after arbitration) to rescind the contract, But, you have to have a winning fraud case - that you were duped by actual fraud into buying the property. If the arb clause is initialled you have to arbitrate. Be sure to attempt to mediate first before you file anything, otherwise you will lose your right for attorney fees if you win the case. (That provision is just above the arbitration paragraph)..

    • Tibbalicious6 months agoReport

      Still not the info I'm looking for. The seller is already offering this as an option, after we requested mediation, in an effort to settle outside of arbitration. My question is: What does a reversal look like? Do we get back everything we already paid out?

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  • Anonymous
    6 months ago

    It all sounds very fishy ! Honestly it sounds like a case of buyers remorse.

    • Tibbalicious6 months agoReport

      Please see comments below to other answers. There were major omissions and lies, which have been proven. These offers have both been made as a result, I'm trying to weigh my options (stay and live through these major repairs or have the transaction reversed.

  • LILL
    Lv 7
    6 months ago

    I find it extreamly hard to believe that your inspector didn't make these needed repairs known to you.

  • Anonymous
    6 months ago

    Talk to an attorney, your chances of getting what you are asking for is slim in my estimate.

    < We had full inspections done prior to purchase >

    And your inspector missed all this? I have a hard time believing it.

    • Tibbalicious6 months agoReport

      We have been working with our attorney for months on this. Both of the options I listed above are what has been offered to us in an effort to settle outside of mediation.

  • 6 months ago

    You will never get everything back and I doubt all of that stuff can be demanded after closing anyway.

    • Tibbalicious6 months agoReport

      Did you miss the part where I stated they are already offering this in an effort to settle outside mediation?
      I'm weighing my options and trying to determine if it would be best to accept the repairs or reverse the transaction.

  • Anonymous
    6 months ago

    Since you seem to be able to get anyone to do anything, I guess it could mean whatever you want it to mean.

    I am with the others and find it hard to fathom that your agent and the seller are giving you these options.

    How is it the sellers lies were not discovered by the inspector?

    What did they lie about?

    • Tibbalicious6 months agoReport

      The addition of the 3rd bathroom sealed off access to the septic, which was not disclosed. The system was not pumped or certified and failed the week we moved in. Our agent failed to file the form addressing septic (responsibility for locating, pumping and certifying).

  • 6 months ago

    At least you got the lot.

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