 Dear George: On Nov. 3, 2005, I signed a contract and put down option and earnest money on a home. I paid for the survey, inspection, appraisal, and other items totaling around $2,200. After many delays from the seller's REALTOR®, I was told in mid-December by someone from the title company that the house could not be sold: The previous owner passed away and the heirs would not sign the papers. Now, more than a year later, I have purchased another house. How can I get my money back on the first home? I thought my REALTOR® was working on this, but she's not. Can I also ask for interest and compensation for wasted time?
Answer: Since the title company notified you that the property could not be sold because the heirs would not agree to sign the proper papers, you or your REALTOR® needs to send a Release of Earnest Money form (TAR form 1904) to the title company. Read Section 15, Default, in the sales contract that you signed. Note that you do have the right to sue for specific performance and or damages. In addition, if the damages are less than $5,000, you can pursue them before a justice of the peace. Just because a person dies doesn't mean he can avoid his obligations. Pursuing specific performance is expensive and time consuming, but the remedy is there. In addition, since you did business with a Texas REALTOR®, you can take advantage of the Texas Association of REALTORS® Ombudsman Program. Call the association at 800/873-9155 and ask to speak with someone regarding this program.
Dear George: About two years ago, I bought a home with a Florida room attached. When the rainy season started, the room began to leak. I contacted my REALTOR®, and she put me in contact with the company who built the room. I made contact with the company, but since my initial call to them, they have avoided me and will not fix the room. Should the owner have disclosed this to us? Should the contractor fix it?
Answer: For those readers who don't know, Florida room is a term sometimes used to describe a sunroom, enclosed patio, or other similar add-on. If it had leaked during his ownership, the seller should have disclosed the water penetration from the roof leak in Section 3, Previous Roof Repairs, of the Seller's Disclosure Notice. However, if the roof had not leaked until you owned the home for two years, there is nothing to disclose as far as the room. Regarding the contractor who put in the room, his potential liability to make repairs would depend upon whether there was a warranty as to roof condition, the length of time if such warranty exists, and whether or not such warranty is transferable when the sellers conveyed the property to you. Perhaps your REALTOR® can provide you with the previous owner's name and contact information so you can inquire about such a warranty and its status. If no warranty exists or is still applicable, you should contact a reputable roofing company and make the repairs.
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Dear George: If a lot that has covenants and restrictions is sold or given to another person, can the person who sold the property change the covenants after the sale? Also, can the new owner change the covenants?
Answer: A person who buys property encumbered by restrictions always takes title subject to the restrictions. They can be changed after the purchase, but you must follow the procedures for doing so. If the restrictions don't specify those procedures, everyone who benefits from those restrictions must join in the change. There are recent statutory provisions, however, that allow change with a 50% or 75% of the vote of those affected, depending on the situation. In any event, it is normally very difficult to have a majority vote together when it comes to regulating land use.
Dear George: My question is about dual state offices. Is there anything that prohibits a Texas broker from having an office in Texas and another office in another state as long as they are a broker in that state too?
Answer: The Texas Real Estate Commission has no jurisdiction in other states. The only thing that would prohibit a Texas broker from having an office in another state would be that particular state's license law requirements. In Texas, you must maintain a physical office for your main office and any branch offices you have as a Texas broker. However, there are no Texas prohibitions regarding how many out-of-state offices a Texas broker may maintain.
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