Thread: New Railroad Tracks Coming In, Is It Too Late?

Originally Posted by mdstover

We are closing on a house tomorrow morning and we were very casually told that they are building train tracks literally 40 yards away from our driveway this evening. I am disgusted that they never told us in the begining because i wouldnt have bothered to even look at the house let alone by it if they had. Is it too late to get out or is there a loop hole stating that is something they should have disclosed to us in the begining before paper was signed. We live in Texas if that makes a difference.

It is going to depend on wether the owners or the agent knew about it before hand. If you can prove that the owners knew about it before hand than you can use their lack of disclosure as ammo to get them to let you out of the contract. Now if you can prove the agent knew before hand you may be able to get them to pay you your earnest money and get released from the contract with your earnest money as liquidable damages.

If you can prove nothing you still can see if you can get released from the contract by offering to allow the seller to keep your earnest money. Just make a big stink without being boligerant noting that you beleive that both the sellers and the agent knew that the railroad tracks were to be built. Along with this tell them that you plan to take all parties to court unless you are released from your contract with a refund of your earnest money.

Just remember you are most likely the one who will have the burden of proof so unless you have proof you probably do not want this one to go to court. If you can not prove either the agents knowledge or the sellers knowledge and that it was not disclosed to you. You will probably loose from how cases I have heard of have played out.

THE ABOVE POST IS NOT INTENDED TO BE LEGAL ADVICE AND SHOULD NOT BE DEEMED AS SUCH. YOU SHOULD ALWAYS SEEK LEGAL ADVICE ON ANY TRANSACTION AND YOU SHOULD CHECK WITH AN ATTORNEY ON ANY INFORMATION PROVIDED IN THIS POST.

I would not worry about the technicalities of getting out of the contract or about losing the earnest money.

DO NOT CLOSE ON THIS PROPERTY. The value of this property just fell dramatically and any loss you accrue in walking away will be nothing compared to how much money you will lose when you eventually try to sell this property.

At the very least, postpone the closing until you can sort this out and contact a good real estate lawyer immediately.

Please contact your Real Estate Attorney immediately.
He will be able to give you the best advice possible as he knows the law of the state and your current situation.

Yes sir, They should have discolsed that information sooner. Unfortunately they already have your earnest money, the hard part is going to be getting that earnest money back.

I AM NOT A REAL ESTATE ATTORNEY AND CANNOT PROVIDE LEGAL ADVISE.

That stated, real estate agents and REALTORS are expected by professional standards to know more about the community than the average person.

A new railroad track is usually a VERY heated issue in a community and is a significant issue that would impact your decision to purchase, because it has a direct impact on the property and its value. In my opinion, both a listing agent and a buyer agent SHOULD have known about it and disclosed it. If the decision to build the railroad was not yet made, at the very least they should have informed you that it was under consideration.

I'd consult a real estate attorney immediately because I think you might be able to make a very good case that proper disclosures were not made.