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stacykat

just when I thought everything was going my way......

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We put an offer on a home last night, it was accepted. The home is being sold as is and we can back out of the deal if the inspection finds a problem or if it's not appraised high enough. Well, today the realtor called to tell us that they are putting city water on the street and that most of the houses, including the one we were hoping to buy, have $3000 liens on them to pay for the installation of the pipes and whatnot. Does this mean I cannot buy this home? Does the seller have to pay this lean off before they can sell? We were thinking about offering $1500 towards it but then again, they accepted our offer and did not tell us about the lean so in a way I think it would be unfair if we paid any money towards it. Any suggestions?

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You should absolutely not pay for that lien! That is the current homeowners responsibility and they will be required to pay it before selling.

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Correct. It will show up on the title as a lien against the property that has to be taken care of before the lender and you get "clear title". It is one of the safeguards in the real estate system that is a great help to the buyers.

Charles

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This figures....the realtor called us an hour after we placed the offer to tell us they accepted, we were so excited because the place was more than we hoped for. We were awaiting the contract today when we heard the news of this lien. The sellers did not sign the contract to accept the offer we placed, very discouraging. We thought it was a go because our realtor told us so. So either they never signed the contract or they signed it, got cold feet and it was destroyed just before we were supposed to receive it. We will hear back first thing in the morning as to whether or not they will request more money. Is it usual for a realtor to tell someone the offer was accepted without having the actual contract in hand?

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** You know, I thought municipal improvements were one of the things property taxes were used for?

I know in Texas, there are several steps in the contractual process of buying/selling a home. A contract that has been signed by both parties, earnest money and an option fee being depositbeing, as well as a sellers disclosure statement that indicates all know defects to include such things as property liens. Verbal acceptance of the contract might bare weight in a courtroom but other than for purposes of proceeding with the sale, neither party would be considered to be damaged by a bad faith representation on behalf of the other party until one (or more) of the aforementioned conditions have been satisfied. In your case you could argue (but it will definitely create an advesarial relationship) that the sellers are not acting in good faith in that they did not disclose the existence of the lien on the property.

Michael

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:shock: This is why the seller was delighted; they wanted someone to assume the liens :arrow: They bank would have checked to see that there are no liens or other encumberances to devalue their money and your house. They also make sure there is no cloudy title and infestation, which of course you pay for. They will make sure the house is sound through an engineering report, which of course are all beneficial to you :!: Keep looking, you'll find something and Good Luck :!:

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8) For ms6073, this world is amazing sometimes :!: In some state 2 ft of your property is for their use (sewage, water, etc.) but you pay taxes on it and you must maintain it and make it accessible for them. Now this might not be the reason for the liens, but since property is a matter of public record, she can go to the town hall or municipality bldg. and find out what's going on. :!:

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We finally got things straightened out. A lien was put on everyone's house in the neighborhood for a water main improvement project. Most houses have well water and could tap into the city water if they would like. They are also installing fire hydrants. The seller agreed to pay half of the lien, by knocking that amount ($1500) off the price of the house. We will pay the lien off ($3000) at closing so it's satisfied. The realtor didn't disclose this because it would discourage people from looking at the property, which I can understand, but he should have disclosed it once we made the offer. We weren't too thrilled with having to pay that extra money at closing but this house is really great and there aren't many like this around so we decided to bite the bullet. I know this is probably a rare case but we felt like it was the best thing to do to ensure getting this house. Now we just have to hope the inspection and appraisal goes well. I didn't realize how stressful this would be lol!

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