Legal Question in Real Estate Law in Maryland
Repairs not completed on inspection addendum
Prior to purchase, my home inspector found that my home's wiring was not up to code (aluminum not copper). The sellers (a married couple) signed the inspection addendum stating they would have it ''pigtailed'' by a licensed electrician. I did a walk-thru prior to settlement with only the wife. She said her husband had fixed everything (there were other items in the addendum that I could see had been fixed). Unfortunately, at settlement, my agent did not request any paperwork to prove the wiring work had been completed. I contacted my agent a week later and requested a receipt. Numerous delays later, it finally surfaced that the repairs had not been done. My agent's manager agreed to have 2 independent electricians come out to prove that the work had not been done (which they both verified). One of the electricians charged for their visit, which I paid for. Now, to get reimbursement, the broker mgr is telling me to complete a W-9 form. First: is the W-9 necessary, and if so, will it show as income on my next year's taxes? Second: a) can the seller still be held liable for non-completed repairs (it has been 3 mos since settlement) and b) was my agent negligent since she did not request a receipt at settlement to prove the work?
1 Answer from Attorneys
Re: Repairs not completed on inspection addendum
Assuming you were at the settlement, I am wondering why you didn't request verification of the completed repair yourself instead of relying on the agent. A good agent would have followed up on it, but I don't think you have a legal claim against the agent for not doing so.
However, I do think you have a valid claim against the sellers for their deception in claiming that the repair had been completed. You can sue them in small claims court if they refuse to reimburse you for the bills, but if they've left the area, it will be difficult to collect if you win in court.
As for the W-9, you should ask the broker why he needs this. Their reimbursement to you is certainly not income for tax purposes.
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