When you hear stories about how hard it is to get a property closed these days it is usually not too far from the truth. Sellers don't want to make repairs and Buyers want things fixed. Once a buyer and a seller agree on inspection issues we all move full speed ahead towards closing and hope there are no title problems or other unforeseen issues that arise.
In Louisiana the Buyer has a final walk through 5 days prior to the Act of Sale. This walk through is used to make sure the inspection items were corrected or a punch list has been completed and the home is still in good shape as originally viewed by the buyer.
Once closing takes place we all think we have overcome the hurdles. In the interim REALTORS wear alot of hats and hold hands to ensure all steps are completed. After the closing Buyer, Seller and REALTORS go their separate ways and once the property closes all is well right? Well not exactly!
This morning I had to get involved with the after effects of two separate Friday closings (both of which were investment properties) The sad thing, is both situations were totally unecessary.
CASE OF THE PLUMBING CROOK:
House #1 had a gas leak discovered during inspections. The City of Lake Charles had turned the gas off until the leak was repaired, seller was notified and seller contacted a plumber to fix the leak. Prior to closing during the final walk through, the gas had not been turned back on and was going to be switched to the new buyer. I asked the listing agent was the leak repair completed and could we have the invoice. The agent informed yes the leak was repaired and passed inspection. Upon review of the invoice, the leak was repaired by a licensed plumber to the tune of $649 paid by the Seller. (that is not a small leak folks!). I asked if a permit had been pulled and the agent informed me yes, the plumber conducted an inspection that would pass with the City of Lake Charles. Seller provided Buyer with a copy of the paid receipt at closing.
However, today that is not the case and we have a he said/she said situation. This morning bright and early my Buyer's property management company called me to let me know No Permit was pulled which was contradictory to the information I received from the listing agent. Someone is not telling the truth and we now have a he said she said story after closing! The plumbing company went on to inform the property management company that they needed to access the property to "finish the job"! HUH??? Why would you invoice a seller $649 and let them pay for it thinking in good faith the problem was fixed when you did not finish the job!
Mr. Plumber stated "oh we just did enough work to stop the leak, we did not finish the work to pass inspection!" Well Mr. Plumber you are a crook and both the Seller and Buyer gotten taken on this one! The Buyer is not obligated to use Mr. Plumber and will get a trust worthy plumber of their own choice and fix what should have been done the first time.
CASE OF THE MISSING KEYS:
House #2- The day of closing listing agent called to inform me that he and his Seller would go early to sign the closing documents at the attorney's office. That's fine, I said just make sure you bring the keys and leave them at the closing. One hour before closing with my buyer I get a voicemail from the listing agent:
"Hey I left the keys under the mat at the back door of the property....." The Louisiana contract states that "transfer of keys are to be granted at Act of Sale unless mutually agreed upon in writing" That means, bring ALL keys to the closing!!
House #2 is located in a neighborhood that is, well let's just say not the best and typically a "rental area". Did I mention that the listing agent is the Broker of a major real estate company?? My buyer was leaving town after the closing and could not go by this location to look for the keys under the mat, I told him I would go by there and this was after leaving numerous voicemails for the Broker/listing agent regarding the keys that he should have delivered to BUYER! By the time I get to the property there are no keys under any mat.
I suggested to my buyer that the property management company contact the listing agent and inform them he would be incurring a locksmith fee. Mr. Agent/Broker was not receptive to that and when I reminded him that delivering the keys was his responsibility he changed his tune. Mr. Seller is now getting the locksmith and I am picking up the new key!
It doesn't matter what type of real estate you purchase, whether commercial, residential, or investment no one should have to deal with blows after closing....not the Seller and not the Buyer. Get it right the first time, complete the steps and follow up. REALTORS represent the client (singular) not both clients unless you are a dual agent. REALTORS are professionals and should do due diligence. Don't expect the cooperating agent involved to hold hands or better yet, clean up your mess after the fact. It's Monday, please stop the madness!
All the more reason for Buyers and Sellers to choose a Lake Charles REALTOR wisely
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