on the hook for $135 000! plus repairs!

[btrain98]

I'm desperate and need help. I own a duplex in northern BC. My manager just discovered allot of rot, mould and structural issues. She has had a few contractors look at the place and it doesn't look good. I'm scared that I'll be on the hook for the $135 000 mortgage plus all repairs to the structure that nobody caught. My inspector was to lazy to go underneath the building. He just stuck his head in the hatch with binoculars. All he said was that one beam needed to be jacked up which would fix the dips in the floor. I don't know what to do. I'm on the hook for allot on money which I don't have. Both tenants gave notice, gone by the end of the month. I haven't even owned the property for a full year yet (Nov 19). Can anyone offer any advice or suggestion that will help? I have no experience with this and have no clue what my options are. Thanks.



Kevin

 

[TodorYordanov]

Get all your facts:

Get an experienced and honest contractor to give you an estimate for repairs.

Get an experience RE agent to give you an estimate on quick sale - make the price attractive to a buyer.

After that decide whether you can figure out a profitable way out of this or you have to take some loss and which one is greater.

Perhaps put it up for sale immediately and take a small loss (education is expensive).



In any case take massive action to get your issue resolved without delay.

 

[Bindy25]

where in northern bc?

 

[btrain98]

Prince George BC

 

[kir]

I'm not a lawyer..but the issue of rot, mould, and structural issues, when not disclosed at the time of a real estate transaction, can be takened up in court. If you google "latent defect", you will get a better description/definition. If you can proove that the seller or listing agent, didn't disclose these defects to you, then you will have a good case.



If the fix up cost is really high, then maybe consult a real estate lawyer.



Kir.

 

[TodorYordanov]

A real estate agent has the obligation to disclose what he/she knows about the property he has listed for sale.

Perhaps a realtor can shed more light on the legality and responsibility issue in this case.

 

[RedlineBrett]

[quote user=TodorYordanov] A real estate agent has the obligation to disclose what he/she knows about the property he has listed for sale.

Perhaps a realtor can shed more light on the legality and responsibility issue in this case.




The seller also has this obligation to disclose when they list via MLS.



If it was underneath the structure and nobody knew about it prior to listing then neither the listing agent or the seller will be liable for this. You have to be able to prove prior knowledge.



Home inspectors do testing but most do *non invasive* testing and this is spelled out in their contracts. That means they aren't pulling up boards or cutting holes in drywall etc. Can't really do that when you don't own the property!



If the home inspector is insured and can be shown to have truly done a poor job then that might be this owners only real legal recourse, but the burden of proof will fall on the owner.



More than likely though he won't get anywhere and will end up having to pay for the repairs and this is the cost of poor due dilligence. Sounds like an expert should have been called in when there were noticeable humps in the floor!

 

[Thomas Beyer]

Fix the problems without spending a bundle. Continue renting it. Be more careful next time and inspect property better.

 

[Dan_Eisenhauer]

Latent and patent defects are both suable, even an the owner did not know about the problem. I ran into a similar problem 18 months ago which I wrote about here.



Law suits are very expensive and you need to have greater than a 50/50 chance of winning before even considering launching one. I had two lawyers each give me opposing opinions on the chances of my reversing my sales contract, and chose not to sue.



You need to get good legal advice, good quatations to repair, and finally consider Thomas' advice seriously. Maybe you can repair and rehabiliate the property over time and not lose your investment.

 

[kir]

Here are some articles on court cases on latent defects and how the courts decided what are considered latent defects, etc...



http://aaron.ca/columns/2011-05-14.htm

 

[btrain98]

Does anyone know of a company that would buy my run down duplex? I know there is allot out there that specialize in buying and fixing properties. Any one know someone? It's in Prince George BC. A full duplex.

 

[btrain98]

I haven't had any luck finding someone. Anyone have any ideas or tips to find an investor looking for a fixer upper? I'm only asking enough to get my money out of it, leaving plenty of room for profit for the next investor. If I had the money I would gladly fix it up myself and make all the money. I live in Calgary which adds to the challenge. ANY ideas would be greatly appreciated!

 

[Thomas Beyer]

[quote user=btrain98]ANY ideas would be greatly appreciated!
Sell it "as is, where is" .. for a huge discount obviously. Someone who loves to tinker will buy it. Consider agremeent for sale, i.e. seller pays you $1 or better $12,000 cash to mortgage, continues paying mortgage until fixed and then gets his own, new mortgage.

 

[btrain98]

thats a good idea. i've already added something like that to the paper work. i just need to find someone who'd be intrested. any ideas where to look or advertise?

 

[BDFI]

Hi Kevin,



What area of PG is this duplex (cross streets)? What rents are you currently bringing in? What are you asking for the place? If you provide me with your e-mail address we can correspond that way.



Thanks,

Bart

 

[btrain98]

its in south Fort George. i was getting $750 and $850 before any repairs. vacant now, had a water pipe break on me. sounds like a ceiling needs replacing now. can i give me e-mail address on here without getting trouble? looking for help not to cause problems. at work now so a little awckward.

 

[btrain98]

It's off of Queensway and La Salle Ave. My contact info is on my profile page so I'm betting I won't get into trouble for putting it on here. If you or any one else has some ideas please let me know, I need out of this soon, as money is going really fast. I will look into advertising in those "free" real estate booklets on the weekend, anywhere you could suggest?



Kevin, [email protected].