On Jan 29, 7:23 pm, email@example.com (Una) wrote:
Let's see. I'm the buy side agent and the asking price is $200K.
That means my agency gets $6K and I personally may get $2500. Now,
what's in my best interest? To screw around getting $200K instead of
$190K? Let's see, that works out to a whopping difference of $125 in
my pocket. Big deal. In reality, the real motivation is to get the
deal done quickly. Same thing on the sell side. You think the
selling agent wants to screw around and lose a deal over an
insignificant change in their commission because the house sells for
$190K instead of $200K?
As I said, unless you're paying your agent by the hour, a similar
conflict of interest is there regardless of who pays the agent. And
in my experience, as follows is how it works when someone uses a
buyer's agent. A buyer who wants to use a buyers agent signs an
agreement with that agent that spells out the agents fiduciary
responsibility to the buyer. They are there to represent the
interests of the buyer, not seller. It also spells out that they
may be compensated by the seller, which is what normally happens. On
a listed property, they wind up splitting the 6% commission, 3% to
selling agency, 3% to buying agency, part of that in turn to
individual broker. Now, is that system perfect? No, but it's what's
I'd be happy to hear exactly how you've seen buyer's agents
relationships done and how they get compensated following the above
example. Meaning the available house is listed by the seller with
some other agent, buyer retains a buyers agent. Who pays who what?
No, it doesn't depend on what his agent told him. The Illinois law is
clear that unless he has in writing otherwise, his agent does in fact
have a legal, binding, fiduciary responsibility to him, not the
A legal framework that allows a person to act through a
representative. Common examples include
o An attorney representing you in a business transaction
o A stock broker buying and selling investments on your behalf
o A real estate broker assisting you in buying, selling or leasing
Under the Act, your real estate agent will owe you certain statutory
duties that are similar to fiduciary agency duties.
Designated Agency in Illinois Real Estate Transactions
An arrangement where one or more agents from a real estate brokerage
company are appointed as your legal/designated agent.
You will be presumed to be represented by the real estate agent you
are working with unless you have a written agreement otherwise
Other associates in the brokerage firm may be designated agents for
other buyers or sellers and may be the legal agent of the opposite
party in your transaction
Even though your brokerage agreement will be with the real estate
brokerage company, you will have a designated agent(s) to act on your
Designated Agency Duties under the Act
Perform according to the terms of your agency agreement. Promote your
best interests as follows:
o Seeking a transaction that meets the terms of your agency
agreement or that is otherwise acceptable to you
o Presenting all offers to you and from you unless you direct your
o Disclosing material facts about the transaction that the agent
actually knows about and the information is not confidential to
NOTE: Material facts will typically not include information related
to property that is not the subject of the transaction, that is a fact
situation not related to the subject property or occurrences related
to the subject property
o Accounting for all money/property received from you or for your
o Obeying your lawful instructions
o Promoting your best interests above the agent's or someone else's
Exercise reasonable skill and care in performing brokerage services
Keeping your confidential information confidential
Complying with the Act and other laws that might apply i.e. fair
housing and civil rights statutes
Start making notes, collect your documents and take photos now! Take
more when you have the damage inspected.
Document, Document, Document. Did I say photos?
I think trying to bail out of this house now; will cause more stress
on your life.
I got scared recently by a high end contractor. Once I calmed down, I
realized the house problem I had was not that drastic. (my enclosed porch
has to be redone, we can do it ourselves now tht we've calmed down and
looked at it). Lesson learned: Don't panic right away.
Thats actually a great idea. Someone you can trust who's familiar enough
with the industry to spot a real problem, is a good idea.
Then you probably did get a decent deal, unless the person who told you he
was a 'deal breaker' was the realtor selling the house <sad grin>. We used
a fellow of our own. He's a little cheaper but only because he hand writes
his reports. He missed a few things, but nothing major. He was dead on for
the roof for example and we took care of it within the timeframe he
specified. My neighbors now are paying upwards of 35,000-50,000 dollars
because they didnt follow the advice to have the plywood mostly replaced at
just this age juncture. (we got away with about 5,000$ 6 years ago
instead). He even warned us the main pipe to the sewer would 'probably go
in 5-10 years' but not to replace it early. It went at the 7 year point and
was re-run at a time when we could much better afford it than when we first
got the house.
Grin, good that you are waiting. Now, if you are serious about selling,
come spring you need to really do a job up nice on the yard with flowering
plants and such.
Glad to help. Seriously, it may not be that bad. I have a house with
settling too, but it's stable and nothing to worry about. A few minor
cracks in spots but the only really 'bad' is the driveway and that is
fixable. It's nothing worse than an old driveway and the freeze-thaw of the
How do you figure that? If the seller knew of material problems and
did not disclose them the *seller* is on the hook for repairs. It is
also entirely possible that the deal may be undone; as I said, the OP
needs to consult a lawyer to determine his alternatives and the
I don't know what you mean by "deal is done", then, unless you're insisting on
including as part of that the possibly liability that the seller may still have
as to non-disclosure. Which is kind of a broad way to define a deal.
I *said* he may be recourse to get the seller to pay for these undisclosed
But my *point* is that he has closed - he's bought the house. He's now in a
position that he owns the problem, one way or the other, either by himself
needing to disclose, or himself needing to fix, hopefully with funds gotten by
litigation from the seller if he fixes. But either way, it's his problem now.
I understand what is being said here. For better or worse, it's my
responsability now. If and when we do try to sell, we don't want to lie on
the disclosure. Not just because we would have the bad luck to get sued,
but also it's just plain wrong. We don't have the 20-30k that the
contractor quoted for digging out the foundation but I'm not sure that it
would be necessary for it to be truly fixed. This is why I will be calling
a structural engineer.
Not really. Even in a disclosure state, you have some protections as a
seller. My state is a mix-match there I think if I understand it right. If
you do not want to be held liable, you sell as 'non-disclosure' which means
you can not be held liable for anything. If you do disclose, you have
limits on what you can be sued for later as based on reasonable knowledge
You can for example: Disclose no knowledge of any roof problems, and not be
held liable if 5 years later it turns out the roof starts to go.
Not really. If the state doesnt require disclosure, but 'allows for it if
you want to' there's a huge difference.
One limit is that you need to show the seller *knew*. Especially if they're not
the original occupants of the house, that may be hard to show. For example, did
the freezer that blocked the view of the shifted block come with the house when
I know that a lot of people don't want to do certain repairs or even bring an
engineer in because it would make it easier to show something they didn't
disclose. (Oh the tangled web we weave....)
And along that line of reasoning, another major problem is that Mac
had his own inspection done before the purchase. We don't know
exactly what the inspection report says about the foundation, beyond
that it says above average settling. As a seller, a very effective
defense is going to be that the seller is not an expert in home
inspection, foundation problems, etc. They will say they didn't know
there were any significant foundation problems. And the buyer's own
inspector, who presumably is qualified, did inspect it for the buyer.
If it turns out there are major foundation problems, I would think he
has a better case against the home inspector, though he certainly
should sue both, if it comes to that.
But until he gets a qualifed analysis of the foundation, no one will
knows for sure the extent of his problems. If it can be fixed for
$5K-10K, he can get it repaired and then sue in small claims. Only
if it's a lot larger than that is it going to be worth the legal
expense of a regular suit.
Thats doesnt mean much. They could genuinely have thought it was cosmetic
and made cosmetic repairs. You'd have to be able to 'prove' otherwise.
Case in point. I just spent 750$ on a plummer. I split pipes in the cold
due to a defective pipe heater that may have been as much as 20 years old.
The real reason is the roof area it lead to was totally uninsulated yet that
was hidden by a solid plywood 'roof' so no one knew except the origional
owner that he'd installed itt hat way. I am the 3rd owner than the 2nd one
would not have known it either. Both me and the one I bought from knew there
was a pipe heater and to plug it in, but neither knew there was zero
insulation up there.
Just found this on the Illinois Association of Realtors website:
"The Real Property Disclosure Report form is a series of questions intended
to have the homeseller disclose any known material defects about the
property. Under the Act, a material defect is defined as a condition that
would have a substantial adverse effect on the value of the residential real
Of course I guess they could claim that they didn't know the cracks would
affect the value of the house, but knowing what this man used to do for a
living, I'd have to say that's improbable, (I just don't feel right posting
"The seller and the seller alone is responsible for completing the
disclosure form and shall be responsible for honestly disclosing only those
matters of which the seller has knowledge".
Actually, this was a one-owner home. They were here for over forty years.
And since some of the cracks were poorly repaired, I find it difficult to
accept they didn't know. I don't think "they didn't know" would hold up in
Don't panic. Calm down. Take a deep breath. Realize that it has
been this way for years and you don't have to solve the problem this
Lets say there is a real problem.. It is going to cost 20k to fix
(number pulled from my ass) and you are easily going to loose another
10k on realtors fees and expenses to just sell out and go rent again.
From your earlier e-mail it doesn't sound like that is an option for
you (it sure wouldn't be for me). So just put the sell and move idea
out of your mind for the time being. It's a broken house but it's
your broken house.
First step is to bring in an engineer to look at the problem, let you
know if there is a severe problem and if there is how to fix it.
Assuming there is a problem, and from what you say there probably is,
take that report to an atty and let them take it from there. The atty
will tell you how to proceed. The disclosure does mean something. You
probably have a good case against all party's involved.
Realize that a resolution to your problem is probably two years away.
I know it is hard, It's aggravating and it's wrong but if you can
accept that fact now then the whole process is going to be much less
stressful for you.
My last thought would be to not contact the seller, real estate agent
or inspector again. Wait until you have the report and an atty and
let the atty guide you. If you tip your hand now you are just giving
them a head start to find a way out of it.
What Steve said.
And in the meantime, it's a house for the living. Plan a party in it; do a
little redecorating. You can't sit on this problem and ignore it, but it isn't
going to fall down tomorrow either.
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