OH MY
We just found out a couple days before closing that drug activity is going on next to our house we were going to buy.
I have children....THERE IS NO WAY i can buy this house for safety reasons...please let me know if you think we have an out?

What sort of "drug activity"??

Couple of kids smoking a joint on the front porch or is it a crack house.

Have you tried alerting the police of your suspicions and fears???

Most sellers are required to disclose material facts directly affecting the property; I'm not sure if some sort of unsubstantiated 'drug activity' would qualify.

Is the neighborhood of good qualify except for this potential rotten apple next door??

Maybe your neighbors would join in a nighborhood watch to eradicate such activity and make the area safe for all again.




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Jim Lee, CRS, ABR, GRI, e-PRO
Realty Executives Associates
Knoxville, Tennessee
http://www.KnoxvilleMLS.com
Jim@KnoxvilleMLS.com
1999 REALTOR of the year, Knoxville Association of REALTORS

I am not an attorney and am not giving you any legal advice. This response is only given for information purposes and should not be construed or substituted for legal advice.

Good Evening Citygirls...

Congratulations on your house upcoming house purchase... But I am sorry to hear that you "may" have a problem with the neighborhood... First things first, you need to clarify as to what type of drug activity you mean... As JimLee had mentioned, Sellers are required to disclose material facts relating to the property... In most areas that also means "drug" activity... But this of course depends upon what type you are referring too... If you mean, as Jim Lee had also mentioned, a neighbor sitting on his porch smoking a joint once in a while that doesn't necessarily constitute a "drug problem." If you mean a drug house where illegal activities are prominent and constant well that is a totally different ball game... I have seen Buyers walk out "free and clear" from a contract because the seller did not disclose that their was a drug house next door...

So please clarify what you mean and maybe we can go from there... In any case if you have that much of a concern, I would speak pleasantly, BUT BLUNTLY with the agent that is representing you and see what he/she thinks on the matter...

Keep us posted and let's see how we might be able to assist you...

Good Luck and by the way, welcome to the forum...

Duane

'This response is being given for information purposes and should not be construed and/or substituted for competent local legal advice...'...

What if the drug house is a few houses away on the street. Would a seller still have to disclose the fact that they believe there is a drug house in the neighborhood in Nevada. Would the buyers have any legal ground if something like that is not disclosed?

I re-read my post. I suggested she look at her contract and she should speak with the agent and sellers. She hasn't stated that she's in Texas, so we can't assume she's using a TAR contract.

I should have paid closer attention when writing. I wasn't trying to say that she should just forfeit her earnest money and default. Some sellers may let buyers out of the agreement if the earnest money is great enough. She can't just back out of the contract since the sellers can sue for specific performance.

In most places earnest money is to ensure you stay in the contract; not a payment to buy your way out.

Jim Lee, you’re sure it’s not called “exit money”? Sorry, couldn’t help myself.

Dee, I hope you know better than that. I'm shocked. The *best* thing that will happen if they back out is loss of earnest money, that's if they're lucky. If they're not lucky a lot of nasty things can happen. See Paragraph 15 of the promulgated contract that spells out default and remidies.

Earnest money is not there to buy an "out" for you. Jim is correct. Option money is there to buy an out, but as you probably (hopefully?) know the option period is typically only a week or two from the effective date of contract.

I hope you aren't telling your clients the earnest money offers an easy out. You'd be doing yoru clients a huge disservice. I could say more but I'll leave it at that.

Thanks for the input, but none of those really answer my question......

The forums are for everyones' benefit. We were discussing other aspects of the issue at hand.

yes, I agree. I'll wait my turn.

If the purchase is financed, there is a good possibility that the lender might not fund the loan under these conditions. I would check that possibility!