Addendum Questions

**Gai Daigoji** · 12-13-2009, 09:09 PM

I've looked all over the internet for this, but i can't find an answer. Probably because it's too straight forward. Here it is:

I've recently put in an offer on a place that was listed for low 100k. It was an estate sale. My offer had an addendum sheet, where I asked for the following items:

-Carpet to be installed upstairs and on stairs of buyer's choice.
-Laminate floor to be installed downstairs of buyer's choice.

I even put the price in the low 120k's. They counter-offered with a higher 120k price and I agreed. So our contract had been ratified.

So I went out and picked a carpet and picked a floor. Gave the information to my real estate agent in which he gave to the listing agent to pass on.

I show up at the place one day and my real estate agent tells me that I don't get to pick exactly what I want. I have to pick out of a selection that the seller gives me, or the contractor doing the work will worth it, in a nutshell.

My question is: Is that how it works? or am I getting ripped off?

Personally, im not happy with the quality of their options and I feel like what I wrote down blatantly says "I get to pick". Please answer ASAP.

Thanks for reading,

Gai Daigoji

**Sabir** · 12-13-2009, 11:11 PM

I can't understand what exactly things are you talking to. For what i guess you are looking to setup some kind of property business. Is it like so??

**Gai Daigoji** · 12-14-2009, 03:47 AM

no. not looking to set up a business. I just want to know if the buyer (Me) specifically says in the contract that the seller will install carpet and flooring of my choosing and the seller agrees to those terms, can they come back and say "Well, we will install carpet and flooring, but it must be of this selection. It can't be just anything that you want"

**Greg** · 12-14-2009, 04:25 AM

Your addendum should have been more precise but it sounds like the seller doesn't want to comply with the terms of the contract. Do not accept their choices and insist on being able to pick your own flooring.

I hope you don't have a big earnest money deposit riding on this.

**Gai Daigoji** · 12-14-2009, 06:33 AM

Thanks for your reply! If I may ask, how could the addendum have been more precise in your mind?

**BoiseRealEstateSoup** · 12-16-2009, 11:57 PM

Originally Posted by Gai Daigoji

Thanks for your reply! If I may ask, how could the addendum have been more precise in your mind?

I would have put something like the following:

.....carpet to be installed upstairs and on stairs: carpet will be of the buyers choice and shall not be installed until final written approval by buyer.....

or something similar.

What you have is not all that bad, but as someone else has mentioned, don't accept their choices on the flooring selection.

**Gai Daigoji** · 12-17-2009, 04:27 AM

Believe it or not, that's exactly what my addendum does say:

"Remove carpet and padding upstairs and on stairs and install new carpet and padding of buyer's choice".

Thanks for all your input. I really appreciate it and this has been a great learning experience.

**REITrainingWhse** · 12-17-2009, 04:33 AM

Originally Posted by Greg

Your addendum should have been more precise but it sounds like the seller doesn't want to comply with the terms of the contract. Do not accept their choices and insist on being able to pick your own flooring.

I will agree with Greg on this point - the more detailed the terms the better - BUT!!! If the contract has that the carpet and flooring is to be SELECTED by the buyer (YOU) the seller has no right to limit your choices. It doesn't say that the seller will pick a set of carpeting, of which the buyer will choose from.

I would find the flooring that YOU found acceptable and then contact the seller as to arranging the installation. If the seller disagrees, next contact an attorney and bring them up to speed on the situation. Then either kill the deal - where YOU get any earnest monies back - due to a breech of the contract from the seller, or you get the seller to comply.

Another option is to amend the contract to hold back say $10K for installation of flooring, which will be given back once the flooring is to your satisfaction - which could be used to do the work yourself.

Personally, I don't have the seller do anything to the house - you never know what type of workmanship will be done - they don't care anymore - they sold the house! You SHOULD either reduce the price, or if you want to roll in the repairs into the price, have that in your contract that the seller will be providing the buyer $X back at closing (some lenders don't like to see that, so I usually add "for completion of repairs" or I state what the money is used for.)

As long as the house appraises - the lender is generally okay with that.

Originally Posted by Greg

I hope you don't have a big earnest money deposit riding on this.

I don't think the money is in jeopardy - the seller is in breech - I think any court system would agree with that.

**Greg** · 12-17-2009, 07:05 AM

Originally Posted by REITrainingWhse

I don't think the money is in jeopardy - the seller is in breech - I think any court system would agree with that.

But the court system can be time consuming and/or expensive. Someone wanting to buy a house now is forced to wait until they get their money back if it is an amount which will hinder them buying something else.

My buyers never put down a large earnest money deposit so they can move on if the seller becomes unreasonable.

**REITrainingWhse** · 12-17-2009, 07:42 AM

Originally Posted by Greg

But the court system can be time consuming and/or expensive. Someone wanting to buy a house now is forced to wait until they get their money back if it is an amount which will hinder them buying something else.

My buyers never put down a large earnest money deposit so they can move on if the seller becomes unreasonable.

Greg - true enough - going to court is a pain and a drain!

As for earnest money - the less, the better - though some agents don't like me to put down $100, they like to see $1000+. Heck, I would give the seller a smile if I could.

(WI being a "peppercorn" state, I could legally bind the contract with "my admiration of the seller", though many agents frown at that.)

Later!