I represent the buyers who purchased a property in early August. We completed a walkthrough on Friday. There was visible damage to the entry to the second floor bathroom. The vinyl had lifted and separated in several areas.
We then were looking at the main floor and discovered more damaged floors with tape and gaps under mats in the kitchen and entry to the kitchen. The damage was completely under the mats not visible at all.
This matter was addressed with Sellers and they agreed the damage to the second floor was likely not there at viewing time and may be due to the weather, expansion etc. agent agreed as well) and also they knew about the damage under the mats but forgot to mention it.
The buyers opted out of a home inspection.We brought through a flooring contractor Sunday for a quote to fix the floor and also for potential replacement. Due to the type of floor it is not possible to just pop a piece up and make repairs. Repair/replacement will be quite a lot of work moving appliances and trim etc. The flooring is no longer manufactured.
The repair was quoted at almost 14k and the replacement of all floors is almost $28,000.00.
The buyer’s lawyer asked me to try to come to a dollar amount agreeable with seller agent but I already knew it would be very unlikely and not well received. I have asked them to please take the next steps with the seller’s lawyer as closing is next week.
The Buyer’s lawyer has said that a holdback is not a good option as it could be tied up for years, they can threaten to not close but risk being sued by sellers and I assume possible subsequent people down the line it affects or can sue them after the fact. What are the realistic options?
Answer
This sounds like it should be covered by insurance. Was the property vacant during the storm with the 5 inch rainfall? That’s likely the cause. But was that the actual problem? That needs to be addressed and solved.
Sellers may be reluctant to report it to their insurer if they have already moved out. You should close. It can get expensive for a lawyer to hold money in trust, but it’s still a good route. You cannot holdback any money without the Seller’s consent.
So, close and sue for the damages after the repairs are complete. You would be fine in Small Claims Court up to $35,000.00
Brian Madigan LL.B., Broker