Legal Question in Real Estate Law in Michigan
Realtor Etiquette?
Built my own house and have lived in it for 2 years and decided to put it up for sale. I put it on the market with a real estate agent and sold the house quickly. Everything was going smooth until real estate agent came in front of the buyer and asked me if I pulled a permit to finish my basement. I was honest and said no..I worked on it at my leisure. (I did pull original permits when building the house and got my certificate of occupancy). My fellow contractors have never pulled permits later to finish the basement as a rec room. I thought real estate agents where on our side. I will lose a lot of money on this deal and have to tear down walls to satisfy the inspector that comes in. ''Is there a realtor etiquette oath to protect the buyer and the seller and why would they expose me into the permit department for such a petty requirement, when other home owners never pull permits similar to this? They have threatened to take me to court if I do not comply with the sale and the new conditions. I feel like I am backed into a corner here!!!!! This is the first time I have ever built my own house and sold. I feel like they are taking advantage of me, what do you think?
1 Answer from Attorneys
Re: Realtor Etiquette?
Your realtor has a duty of loyalty to you and arguably breached her duty. She should not have brought up such an issue without having discussed it with you in private and coming up with a plan of action.
However, any homeowner who does not have permits risks an inspector requiring some part of the walls to be taken down to see if things are fixed up to code. This should not be too expensive however and you should be able to shop around for an inspector who will work with you.
The fellow contractors should eat the cost of any repairs needed for the inspector as related to the parts the failed to pull the permits for.
Sounds like you would best be served if you have an attorney represent you so that you are not bullied. At least allow an attorney to take a look at the contract for you to see if there is another way out or any other options / alternatives. While it looks as if you may have done something wrong, you may not have.
Please let me know if you would like me to assist you.
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