Home-sale side agreement raises serious issues
Question: We purchased our home about a year ago. The sellers and their real estate agent made a side agreement to repair some of the defects after the close of escrow. These included a new liner in the chimney, a new exhaust vent for the furnace and a vent for the clothes dryer. The repairs were supposed to be done within three months of closing, but the sellers still have not completed the work. The person they sent to do the work is unlicensed, has no insurance and won’t give us his last name. He hasn’t gotten a permit for the work that he has done, and what he has done does not look good. The new clothes dryer vent is a plastic flex pipe that blows into the attic. The seller now says that the chimney does not need a new liner and has declared that all of the work is done. To top things off, the agent won’t return our calls. Instead, her attorney has called and warned us to stop calling the agent. What can we do?
Answer: Your situation involves a number of serious issues.
—The side agreement for repairs should have been a binding, written contract, not an agreement that was subject to the whims of the sellers. If they agreed to install a new chimney liner, then that should have been done. If they agreed to finish the work by a specific date, that deadline should have been met.
—All of the repairs should have been done by qualified professionals. In particular, chimney repairs or furnace vent replacements should be done by licensed specialists. If the sellers hired unlicensed contractors, then the sellers are liable for the substandard work.
—Building permits may be required for some of the work. For clarification of these requirements, consult the local building department.
—It is illegal to vent a clothes dryer into an attic, and plastic flex is not approved for vents. The duct should be smooth sheet metal and should end outside the building. The building code contains a list of requirements for the proper installation of a dryer vent. The handyman without a last name is probably unaware of these requirements.
—If the real estate agent helped to establish the side agreement, then she should be concerned that its terms are met. The agreement, in fact, should have been part of the purchase contract rather than an informal side arrangement. A portion of the sellers’ proceeds should have been held in escrow until the work was completed and approved. That is how a competent professional would have set up the agreement.
—It is improper for an attorney to call a potential plaintiff and intimidate them. You could file an ethics complaint against that attorney with the state bar association.
Finally, you should consult an attorney of your own and possibly file a lawsuit against the seller and the agent in Small Claims Court.
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