You found your dream home in the Hartford area, and the process is moving along smoothly. Then, the home inspection report comes back, revealing a major, unexpected issue like a failing foundation or a buried oil tank. To make matters worse, the seller refuses to make any repairs.
This is a stressful situation, but it is important to know that you are not trapped. If your purchase agreement was drafted correctly, you have clear options. Understanding these options is the key to protecting your financial interests.
Option 1: Negotiate for a credit or price reduction
Instead of asking the seller to perform the work, your attorney can often negotiate for a credit at closing or a reduction in the sale price. This provides you with the funds to hire your own trusted contractor to fix the issue after you take ownership. Ultimately, this gives you complete control over the quality of the repair.
Option 2: Use your inspection contingency
A standard real estate contract in Connecticut includes an inspection contingency clause. This is your most powerful protection. The clause gives you the legal right to terminate the contract and receive a full refund of your deposit. You can use this right if the inspection reveals defects and you cannot reach a satisfactory agreement with the seller.
Option 3: Accept the property as is
You can still choose to buy the home without any repairs or credits from the seller. However, this is a significant financial decision. If you accept the property as is, you will be fully responsible for the cost, time and effort of addressing the defect after closing.
Making an informed decision
Because the path you choose will have a major impact on your finances and legal rights, the home inspection is the point where having an experienced attorney becomes invaluable. An attorney can help you negotiate effectively or enforce your contractual rights if you need to walk away from the deal.
If you are buying a home, consider speaking with a real estate attorney early in the process to ensure your purchase agreement fully protects your interests from start to finish.