Buyer Beware! Anyone Purchasing a Home. Learn From my mistake. Long Read

Red Devil

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This is a long story but if it helps only 1 person, it's worth it.
In 2005, my wife and I found our dream house. We had 3 requirements when we were looking. 3+ acres, an inground pool, and a nice move-in ready house. We new what we could afford and never compromised that. After looking at at least a dozen houses in price range with our 3 requirements we were beginning to think it was a pipe dream. This was at the height of the housing market and everyone was seeking top dollar. Our agents called us on Mother's Day and said, "We've found it but we have to act fast. It just went on the market and it won't last." We went to check it out immediately and they were right. It was a beautiful house on 3+ acres with a brand new inground pool. It was 100 times better than the nicest house we had looked at. We signed a contract that day. We were curious why the sellers built a very expensive pool and then decided to sell. We found out they had built the pool for their grandkids but then their son was transferred to Florida so they were moving to be closer to them.

2 months later we closed and moved into our dream house. We had a home inspection before we settled and the house passed with a few minor issues. 3 weeks later, we received a letter from the sellers stating that we had to contact the pool company to transfer the pool warranty into our name. And then the nightmare begins...

The pool company informed us that the pool never passed final inspection by the county. Uh oh. The county came out to inspect the pool and it failed across the board. The pool steel failed. The pool location failed. And the real kick in the balls, the pool fence failed. The previous owners opted to build their own pool fence around 1 acre of the property to enclose the pool and the back of the house. I contacted the sellers and informed them of the situation. They claimed to have no knowledge that the pool never passed final inspection but they were going to do anything they could to take care of it. They spoke with the pool builder and us and claimed, in writing, that they were responsible for bringing the fencing up to code (the pool company was able to get the other violations taken care of).
The sellers asked us to contact a fencing company to get an estimate. The estimate was $21,000 to fix the existing fence. So I asked how much it would be to just put a fence directly around the pool. That was $9000. I thought, Great! I'd rather have that anyway because we have small children. The sellers said they would try to get something done over the winter holidays when they would be up in the area to visit family. I was told on many occasions that they knew they were responsible and that they didn't want it to escalate to a legal issue because they knew they wouldn't win. Never heard back from them until a letter showed up in the mail a month after New Years. They had done a complete 180. It basically said we should put up a cheap temporary fence until it passed inspection and then to take it down.

I felt I had no choice but to take legal action. I had given them close to 2 1/2 years to deal with this. So, I contacted a lawyer and asked his advice. He asked, "What do you want financially out of this?" I told him I just wanted the money to build the fence directly around the pool. Nothing more. I wasn't looking for a chance to get rich or stick it to someone. I felt I had held up my end of the sale and I wasn't getting what I paid for. I felt cheated. He advised me to go to small claims court and seek the maximum of $5,000. Why get lawyers involved and pay them when I seemed to have a pretty strong case with the sellers admitting, in writing, that it was their responsibility. I felt pretty confident.

I filed a complaint and had them served. We received a notice to defend from their lawyer. I got a little nervous that they were hiring a lawyer so I spoke with a lawyer again. He told me that in small claims court it's the judge's understanding that most people represent themselves and that they are not lawyers; a small amount of leeway may be given. He said he could represent me but if I won, it's extremely rare to get back legal fees. Especially in small claims court

The trial date comes up and I go in with all my documents. My father, a retired lawyer with The Washington DC Bar went with me to advise me in any way he could. I went before the judge and my father came to sit with me. He was ordered, quite hostilely by the judge to return to his seat if he was not representing me. Now the nerves start to really kick in. I state my case and mention all the supporting documents. The letters from the defendants claiming responsibility, the disclosure agreement in the contract, the inclusions in the contract (which the pool was a part of).

Then, it's the defense's turn. He argued that there was nothing in the contract that mentioned anything about the pool having to pass inspection and therefore, anything after the signing of the sales contract holds no bearing. I tried to comment that the pool was listed in the inclusions and therefore assumed to be fully inspected and permitted and was quickly and harshly silenced by the judge over and over. I was told I had had my chance to speak and that that time was gone. My father was frantically trying to tell me to argue the inclusions issue but I was told by the judge to be quiet and listen. I was then berated by the judge for not having an extensive knowledge of contracts and that he had made his decision. Judgment for the defendants.

I sat there in disbelief thinking this could not have gone worse. What else could possibly go wrong? Wait for it...........
Then the defense attorney stood and stated he was seeking legal fees from the plaintiff under code niner tango blue delta xray etc. of the Maryland State Realtors Contracts and served me right then and there. His legal fees were 3/5s of what my claim was for. Not only did I lose what I felt I was owed, I could now be paying OUT money.
I receive a trial date and now I have to get a lawyer. I find the top lawyer in my county. He reads through the home sales contract and finds a clause. It states that if a claim, seeking damages, is brought against the sellers based on the sales contract and the sellers are found not-at-fault, they are entitled to reimbursement of reasonable legal fees from the plaintiffs. My lawyer is confident he has a good argument against this. I won't go into his argument because I'm sure anyone who actually took the time to read this is already wishing for death. We go to trial and my lawyer pleads my case. The judge even agrees it's an excellent argument and would stand up in a higher district court due to previous judgments but in this case the contract states the attorney's fees very clearly. I lost again and the defendants are awarded their legal fees.
My attorney is furious. He can't beleive what the sellers are getting away with. He tells me that in trying to do the right thing, in trying to be reasonable, in trying to be fair to the sellers, I failed. If I had sued them for the highest amount allowed, in a higher district court with an attorney at my side, I most likely would've won.

To any who read this:
I am not seeking pity
I am not seeking criticism
I just hope my failure can help someone else

Have an experienced realtor. Don't use friends or friends of friends. Get a highly qualified home inspector. Go through the contract with a fine tooth comb. The sales contract is very biased towards the seller. If there's something you don't like or something you feel needs to be added, have it written in and have the sellers sign agreement to the addition. If the property has any additions; Deck, Garage, Pool, room additions, do yourself a HUGE favor. Go to the county inspections and permits office and have them pulled. The couple dollars it will cost you will be worth the piece of mind.

Thank you for listening
 
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Common

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Wow, sorry to hear this!

You live and you learn I guess, what is the next step?
 

RDJ

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You know I have bought and sold several homes but even on my first one I checked everything thoroughly. I am really amazed at the number of stories showing up in roadside and smackdown where people could have saved themselves huge amounts of trouble and money by simply doing a little homework before signing on the dotted line and yet didn't.
 

Jack32v

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Wow, I read through it all and I am sorry to hear this, that sucks big time... I had a stint in small court... the ruling was not in favor of me also, his reason (the judge) and I am quoting the judge word for word "I talked to an outside source and we both agreed you are wrong" so the jerk let someone else make a ruling on my case and he agreed with it... I hope the best for you and try not to let it get you down to much...
 

DrZacharyus

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DAMN, I am sorry to hear all of that. I would be so livid with the seller! It takes simple logic to deduce that YOU'RE in the right place by making this case. The judge must have been a tool. Just keep being the good person you are, this will turn around.
 

Red Devil

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You know I have bought and sold several homes but even on my first one I checked everything thoroughly. I am really amazed at the number of stories showing up in roadside and smackdown where people could have saved themselves huge amounts of trouble and money by simply doing a little homework before signing on the dotted line and yet didn't.
That's why I hope my mistake makes someone else think twice. The only one who has your best interests in mind is you
 

Guy Fawkes

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Greetings,

I am an impressionable young man at 22 years old. I thank you for this story and you have tought me a valuable lesson .... sue the LIVING HELL out of anyone that tries to screw me over ...... thank you!
 

Red Devil

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DAMN, I am sorry to hear all of that. I would be so livid with the seller! It takes simple logic to deduce that YOU'RE in the right place by making this case. The judge must have been a tool. Just keep being the good person you are, this will turn around.
Thanks. It gets harder everyday to keep doing the right thing when you see the opposite get rewarded
 

Red Devil

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Wow, sorry to hear this!

You live and you learn I guess, what is the next step?

This just happend on Monday. My lawyer said I can file for an appeal but how much money do I want to throw at it? I might be able to file a large claim against the real estate company that represented me but again, do I want to risk losing more money? Such a small issue and I can't even put into words the grief and stress this has brought on me and my family. I can't open the pool until it passes inspection because of the huge liabilty. In this economy, I can't afford a pool fence right now. The sellers walked away with hundreds of thousands of dollars, free and clear. They were the original owners and the house was paid off. They bought a house in South Carolina for a tiny fraction of what they walked away with. They're now sitting down there wiping away their tears of laughter with hundred dollar bills.
 

busta

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This shit makes me sick... The sellers must feel really good about themselves.
 

ScareCrow

"Facts are stupid things"
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Damn bro, reading that got me pissed off that those people did that. Im really sorry to hear that you have to go through this.
 

04SVT_COBRA

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I hope karma comes in the form of a bus to the face for them. Sorry to hear that the good guy lost. I'll remember this for when I purchase my first home.
 

04Cobra23

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Sorry bro, this is ridculous. Im sure you did everything you could but did you get a disclosure agreement? I would try and sue the pool company they were aware of this problem and let it go. Now they should fix it and make it right. Is this a big ppooll company? The homeowner is an ass either way but I had a situation when I replaced my a/c at my house, I got a call a year later from the city wanting to inspect because the company never got the final release and I wasnt aware of it.
 

JasonSnake

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In this world, you just have to be a little selfish to succeed. -JasonSnake
 

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