ask george & chuck
Feb. 9, 2009

Storm-damaged property, first-time buyer advice
Answers to real estate questions as appearing
in the Houston Chronicle

Dear George: The home we were having built was badly damaged during Hurricane Ike. The builder was unable to repair the damage in time for the contracted closing date, rendering the contract null and void. The title company still demanded that we pay for a survey out of our earnest money, and the builder won't refund us the $1,600 we paid for flooring. How can we recoup these costs?

Answer: Everyone involved in a transaction suffers when a natural disaster strikes. Most contracts don't anticipate such events, so the title company is still bound by the contract you and the builder signed. If the contract calls for you to pay for a survey, the title company is obligated to deduct that from your earnest money upon its return. The money you paid for the flooring is usually a non-refundable cost, and the builder is not obligated to return it to you even if it was not installed.

Dear George: I'm a first-time buyer looking for houses online. I e-mailed a REALTOR® for more information about a property, and he said that the place had been on the market for a year and that the buyer would probably take a lot less than the asking price. This seems like a good deal. Am I missing something?

Answer: The REALTOR® whom you contacted should have provided you with a form called Information About Brokerage Services, which explains how Texas real estate licensees work with clients and customers. This REALTOR® is probably working on behalf of the seller. Although he is still obligated to treat you fairly, he is not representing your best interests. Consider finding your own representative to ensure you have a real estate professional looking out for your best interests. Your REALTOR® will be able to help you determine if this property is, in fact, a good deal.