DC Real Estate- Under contract since June 2022?

Submitted by poopsasaurus t3_z37zr8 in washingtondc

My partner and I found a great place at the end of May this year in a neighborhood we love. The seller accepted our offer below asking in a popular neighborhood which we thought was a great deal (this was when the mortgage interest rates were not so high). Since then, we have not been able to close on the place first because it didn’t have a Certificate of Occupancy (single row home- newly renovated into 2 units) then because of outstanding taxes (>75K). Since then, the CofO has been issued but the sellers claim they are disputing the tax amount with the city. They have signed contract addendums crediting us for the delay and are assuming the mortgage rate lock fees which combined totals 30K this month (almost half of what they owe in taxes). This doesn’t make much sense but we’ve been going with it since they are technically crediting us (the down payment has been in escrow this whole time). Our realtor and the seller’s selling agent are from the same company and it seems the sellers are not providing either with much information/updates over the past 7 months. Our realtor is great and admitted he’s never heard of this happening. We are tired of waiting and are beginning to wonder if if we are getting got somehow. Anyone have any ideas or advice? Happy to share more info. Thank you for reading.

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ekkidee t1_ixkjskq wrote

Could you force the seller to honor the contract by assuming the tax lien, and then getting a credit for it? If the amount is in dispute then you can negotiate that. The +75K amount, plus the recent rehab, makes it seem that this might be a condo conversion fee, which can be pretty high. Outstanding property taxes don't get to 75K overnight.

Otherwise I would sue to break the purchase offer.

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WayyyCleverer t1_ixn0o71 wrote

Push them into default, they would have done the same to you!

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yaytoreddit t1_ixlriws wrote

Get a lawyer if you have not already. This is the type of situation where they can be very helpful.

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DoesGiggyIsDead t1_ixkozb2 wrote

Assuming you signed a builder’s contract? Or did you sign a GCAAR contract? If GCAAR then you have an easy out. If builder’s contract then many times they have a clause that settlement can be delayed up to two years without penalties to the seller.

You mentioned “down payment has been in escrow” - your entire earnest money deposit is your down payment?

Do you have an addendum/written documentation that they’ll cover your rate increase costs?

Did seller choose the title company / or give you $ credit for going with title company of their choice? Or did you choose?

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IcyWillow1193 t1_ixmblho wrote

> The seller accepted our offer below asking in a popular neighborhood

Rarely has there been a better exemplification of the "there's no such thing as a free lunch" principle as this post.

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WayyyCleverer t1_ixkg4du wrote

Sounds the buy side and sell side realtors are colluding against your best interests. Not sure what to do with that, but one of the only reasons to get a realtor is to get these issues taken care of quickly.

What do the terms if your contract say? Tell them you are going to push the seller into default and get your money back, that might motivate them to get their act together.

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BobLoblaw420 t1_ixkse01 wrote

That makes no sense The realtors don’t get paid unless the deal closes so now is delaying by 7 months benefitting them? You sound like someone who just blames everything on realtors. Not being able to get a C of O for a while is pretty common. The other issues sounds like they come from DCs ineptitude

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WayyyCleverer t1_ixlx4p9 wrote

Sure it makes sense. Two realtors at the same company have a fish on the line. They won’t get paid until it closes, and they’re leading OP along as long as possible. Sure it will eventually close, so it’s in their best interest to keep OP around for their pay day at the expense of OPs sanity, time, goodwill. They also know the seller is in default so their doing their best to make sure OP stays happy and doesn’t flex the rights that he or she may have.

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BobLoblaw420 t1_ixm854k wrote

If you are the buyers agent you would simply help your client get out of the contract and find another property and still get paid. There is no reason to collude with another agent. There is literally no benefit to the buyers agent. Only a 7 month delay in getting paid. The op clearly still wanted the property despite all this and their agent was trying to make that happen you have no idea what you are talking about.

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WayyyCleverer t1_ixmau9s wrote

Thinking the buyers agents interests are aligned with the buyer is flat out wrong. We can see that here playing out. What buyers agent would allow their client to get strung along for this long? I’ll tell you who - one who’s interests are aligned with doing no additional work and keeping the buyers and sellers fee inside the same real estate company. OP is getting taken for a ride.

Are you a realtor?

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IcyWillow1193 t1_ixmbdq6 wrote

>Are you a realtor?

he's either a Realtor or very naiive about how things work here.

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WayyyCleverer t1_ixmjesz wrote

For sure. After getting screwed for 7 months, his advice is keep getting screwed

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BobLoblaw420 t1_ixmz7a5 wrote

How is the OP being screwed? They’ve lost nothing and still want the property. It’s in their interest to find a solution You make no sense.

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BobLoblaw420 t1_ixmc8hr wrote

The client clearly said they still wanted the property. You don’t stop working for your client because things get complicated. You help them sort it out. The problem here lies with DC not being able to figure out the proper assessment and letting the sellers know what the tax lien will be and allowing them to pay it at closing.

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WayyyCleverer t1_ixmjfuk wrote

So you’re definitely a realtor, eh?

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BobLoblaw420 t1_ixmsdxn wrote

Yes. I’m telling you what I’ve learned from 20 years of experience while you are judging the situation with no knowledge of how anything works. You make it seem like it’s a bad thing to be knowledgeable about real estate. It’s like voting for Trump because he’s not a politician. Don’t you want experts handling issues in their field?

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WayyyCleverer t1_ixmu52d wrote

Haha I knew it!

OP don’t listen to this guy!

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BobLoblaw420 t1_ixmyvvi wrote

Yeah listen to the basement dwelling programmer over someone who knows what they are talking about.

Next time you need surgery go ask a pilot

I’ll mKe this easy for you. The buyers agent could say hey let’s find another property and still get paid since the OP says they’ve been happy with their agent.

The selling agent wouldn’t have a problem selling the house in this market so delaying for 7 months benefits neither of them and neither gets any additional pay in this scenario.

So again. You’re premise makes no sense and your knee jerk snark is unwarranted.

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WayyyCleverer t1_ixn0e1b wrote

Basement dwelling programmers are some of the people buying real estate in hot markets and paying your salary. Even if I was one, I’d still be able to tell that there are two realtors here abusing their relationship with and best interests of the buyer.

You’re clueless and have demonstrated no recognition of the problem here. I feel bad for anyone foolish enough to do business with you.

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BobLoblaw420 t1_ixn5dtu wrote

Ok. Explain how they are abusing the system here and I’ll admit you are correct.

I bought a computer once. Does that make me more of a computer expertise than you?

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[deleted] t1_ixo88yn wrote

[deleted]

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WayyyCleverer t1_ixogbjn wrote

Eventually paid, sure…eventually. But not without running the risk of getting a lower offer than OP and also having to invest the time and energy into selling the house again but in the off season. They also risk moving the buy side fees to a another real estate company if they have to go with a different buyer.

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Accomplished-Staff32 t1_ixlzixl wrote

I went through similar thing years ago. The seller/builder was about to lose the place in a tax sale. He is trying to avoid paying the taxes because he knows they will snatch what he owes at the closing table. If you can risk it and there is no back up offer, threaten to leave the deal unless they close in a certain time frame. His taxes aren’t your problem and make sure you have it in writing that they are going to pay for your interest rate lock. Btw who is the builder?

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chezewizrd t1_ixlqizz wrote

There should be plenty of ways in your contract to get out of this by now. I would get out and move on. No one needs this in their life.

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Caroleena77 t1_ixm5lb4 wrote

I know people who had a very drawn out closing for different reasons. Agree that they're trying to get out of paying those taxes, they probably sat on the property and left it vacant for awhile. I would be prepared to have more repairs than you expect for a newly renovated place, since the developers might not be the best. It could still be worth it if it's a good deal with a better interest rate, though. Definitely get a real estate lawyer, and talk to that lawyer about switching real estate agents. I feel like having their agent and yours with the same company is not great in a combative situation. You can eventually force them to follow through on the contract they signed with you, I believe. You may need to escalate, though.

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ekkidee t1_ixmqsw0 wrote

Since there is so much doubt and uncertainty here, I suggest a sit-down conference between buyer, seller, and agents. Your position is how do we close this deal: satisfaction of the tax bill, adjustment to the sale price, buyer credits, and so on.

Maybe there is seller remorse? That's not enough to get out of a deal. If there are tax problems, seller needs to provide documentation.

The goal of your conference is to reach an agreement to close, or cancel the deal.

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WayyyCleverer t1_ixogmcy wrote

And bring a lawyer. Buyer and seller agents work for the same company and will not have OPs best interests in mind.

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Mycatisbrown t1_ixntqnp wrote

Any chance this is a piece of junk rowhome with wood shingles?

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