I have a friend who is purchasing property in Florida. He and his wife looked at several properties and finally settled on one. Allegedly, at the initial point, the previous people were owner/resident.

The Selling Agent and Listing Agent, (one and the same), is apparently involved in quite a few deals and a highly experienced Realtor. She did not disclose that she and her family had purchased this property at foreclosure. Later on, during conversations and inspections, this came to light. The Selling Agent provided a disclosure form that is contradictory in spots, and does not answer some questions in other spots. During the inspection process it came to light that the selling agent and her family made repairs themselves - "but don't worry they are licensed and have even built their own homes".

The inspection was a pretty thorough inspection, paid for directly by my friend. On the date of the inspection, the selling agent sent her HVAC guy over to remove the Air Handler and replace it - old was 10 SEER, proposed replacement is 10 SEER, (remember this is a Florida property, 4 bedrooms, about 1800 sq ft). My friend was able to get the Realtors, (selling and his), to agree to just effect the removal of the air handler and wait. My friend wanted a 14 SEER put in, since he will be replacing the outside condenser unit within 2 years per the inspection, he figured he might as well do that now. The Selling Agent's HVAC guy gave an estimate on the spot of what it would take to replace the Air Handler and the Condenser unit, and my friend signed paperwork and gave him a check for the upgrade (selling agent had magnamiously agreed to pay $2,100 to install a new Air Handler prior to the price negotiations). The inspection revealed that the ductwork was damaged in no less than 4 places and that if the air conditioning would be turned on with out repair/replacement of the ductwork, additional leaks would occur. The selling agent was given a copy of the inspection report on the day of the report.

The paperwork for the upgrade was "lost" between the HVAC guy leaving the house and his office to make a photocopy for my friend. The selling agent is now saying she will only put a 12 SEER in, and will do so if and only if my friend puts $3,000 into escrow for the outside unit and has no responsibility for the ductwork.

Selling Agent and her family purchased this property out of foreclosure for approximately $250,000, listed it for approximately $380,000, refused an offer of approximately $360,000, but accepted an offer of approximately $372,000. (Total timeframe from purchase out of foreclosure to price negotiations and acceptance approximately 7 months) Rough calculations for repair/replacement/upgrade total about $17,000 per the inspection report. The Selling Agent refuses to pull and/or provide permits for renovations, (master bedroom bathroom, kitchen, some internal wiring). In the Kitchen the three-prong plugs have the point going upwards, in the foyer half of the three-prong plugs point upward and half point in the normal downward position. Allegedly this is due to a change in the building code recently in Florida.

I believe the Selling Agent has violated Disclosure rules, (I assume they are similar State-to-State?), and I think the buyer has the right to obtain permits, etc for renovations?

The buyer is approved up to $500,000 for the Mortgage, has been willing to accept certain issues, (such as pool repair), but wants the HVAC done properly. The Selling Agent still has this property listed on the Internet on Realtor.com, and although originally the disclosure said a refridgerator was included and during discussions the Selling Agent changed her mind, it is now also removed from the listing on the Internet.

I fear that due to the extensive experience of the Selling Agent, she knows how to skirt the rules and cut corners, and can do so effectively. Is it possible for the buyer to pull records to see if the Selling Agent actually appears anywhere as owner? Is it possible for the buyer to pull permits? If the Selling Agent renegs on anything and the buyer calls her to task for that, can the Selling Agent pull the deal and keep the buyer's money?

I think the Selling Agent is planning on getting the HVAC working without repair/replace of the ductwork in hopes of continuing to show the house to get a second qualified buyer and playing both ends against the middle. Any attempt to run the Air without repair/replace of the dictwork will create additional leaks - which the Selling Agent is now aware of due to receipt of the inspection report. If she does run the air does the buyer have any future claim for additional damage willingly and knowingly created by the Realtor?

Any suggestions would be greatly appreciated. This house would be a good thing for my friend, and he can make repairs that are needed, but there should be some way that he does not have to bear the entire expense as the house was not as promised. The inspector said it was obvious that any of the repairs made were done at the lowest cost possible.

Thanks

In most areas a real estate licensee is required to disclose a personal interest in real property they are selling or buying. If a family member of said licensee owns that house that may not be something required to be disclosed.

How the owners acquired this property and what they paid for it is immaterial.

I believe air leaks in ductwork are pretty easily repaired.

The direction of the ground prong (third hole) in wall sockets is a non-issue; they work either way as well as sideways.

The terms of the sale contract and any subsequent addendums would govern this transaction; any changes would normally have to be agreed upon buy all parties in writing.

I'm not yet even a student, but it was my understanding that she has to disclose that she is a realtor. I just don't see this would even come to play though. If the buyer feels she has done something unethical he should call her broker. Plus EVERYTHING should be in writing.

James Lee and Luvduv

Thank you for your replies. In the Sales contract, under Additional Terms, it says XXX(Realtor) has an "unrecorded interest in the property" and I do not understand why it is put that way. Since this Realtor is a top agent for her office, would it do any good to talk to the Broker, or do you think that will do more to polarize the parties? This is a very doable deal for both sides if they can just compromise and come to terms that are mutually acceptable, even though the Agent's behaviors appear to be somewhat questionable. Thanks

I guess that's sort of a 'left handed' way of disclosing a personal interest. She may have a financial interest in the house but not be named on a deed as one of the owners of record.

Whether this Realtor is or is not a top producer, her and her broker still answer to the Florida Real Estate Commission and the local Realtor Association for any unethical conduct that may occur.

James Lee

Again thank you for your reply.