I bought a house at a real estate auction a fews years back. After I took ownership and fixed it up, I found that the house had been ran into by a car, had flooded previously, and might need foundation repair.
Obviously, I couldn't sell it to somebody else for full-price, so I put it on the market for sale "AS-IS". I even made the buyer sign an addendum stating they accepted the property in "as-is"/"where-is" condition.
We agreed they would take it for a very cheap price (about 20k below normal value). A few days before the closing the buyer came back and said they wanted a foundation inspection because when the house had flooded in the past, the swelling of the ground had caused a crack in the brick, but not the foundation.
I was furious and told them that it was fine, but that I would simply increase the price, if something had to be fixed. Long story short, because we were so close ot closing, I gave them $5000 for foundation repairs to close.
Now, three years later, the lady is back and talking about sueing somebody because the property has flooded again. She says she's not going to sue me, but I still have a suspicion that she wants to turn this back into a "not as-is" sale, like she did 3 days before the closing.
Am I screwed? I put in the disclosure that the house had flooded. I showed her where cabinets had been damaged, etc. We had talked about the crack in the wall. She signed the addendum.
The only thing she has on me is that we thought the city had fixed the problem at the time,but also I told her she needed to get her own determination. The addendum says that too.
I just know she's gonna cry to some judge that I'm a terrible, dishonest investor who duped her, but it's simply not true.
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