Q: The current owner did not disclose problems they knew about. Can I recover cost any costs associated with the purchase?
Upon inspection we found electrical, plumbing, and permitting violations on a home purchase. The owner had many improperly done DIY jobs that were not disclosed as well as a moldy basement and a vastly under-structured and dangerous deck. Although we backed out during due diligence, we've paid for an appraisal ($550) and inspection ($610) as well as travel from our home in Florida. Can we recover any of these expenses?
A:
The due diligence fee compensates the homeowner for taking their home off the market and giving you exclusive access to do research on the home. If the seller took their home off the market and allowed you to inspect it, that's what the DD fee is for, you're not entitled to get it back merely because the sale did not work out. However, there are certain circumstances in which a DD fee is recoverable.
Whether you get your DD fee back and under what circumstances will be described in your contract. Did you use Standard Form 2T? Generally, you're only entitled to get the DD fee back if the seller failed to give you a property disclosure statement before you submitted the offer to purchase, or if they materially breached the contract.
Is this for property in Raleigh, NC?
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