Legal Question in Real Estate Law in Iowa
Seller won't pay for damages prior to closing.
The day before I closed on my house, the sewer caved in under the street. My real estate agent and the lawer representing the real estate firm made the sellers sign an agreement stating they are responsible for fixing the sewer. They also set up an escrow account. Well when the work was finished the bill was sent to the sellers, they refused to pay and their lawyer revoked the escrow account and gave the money back to them. Now the plumber is threatening to put a lien on my house. What do I do? I did NOTHING wrong. I was nervous about buying the house but my realtor said not to worry because the seller is ''by law'' responsible. I know this is completely illegal. I believed her because it makes sense. Not only did they agree to pay but isn't it common law in any real estate contract that the seller is responsible for any costs from the time an offer is accepted up to closing??? Please help. Do I sue my realtor and the sellers? Is there an alternative? I really don't want to drag this out in court... Please help! FAST!
1 Answer from Attorneys
Re: Seller won't pay for damages prior to closing.
I am guessing you did not have an attorney representing you? It seems from your question that your real estate agent was engaged in the unauthorized practice of law (and I would imagine your real estate agent was the one who told you you did not need your own attorney). You would need to have an attorney review the escrow agreement as well as the agreement that was signed at closing by the seller.