ask george & chuck
July 13, 2009

Home inspections, protection periods
Answers to real estate questions as appearing
in the Houston Chronicle

Dear George: Can I recover the money I spent to inspect a home that I was interested in purchasing? The seller didn't disclose to me a major plumbing problem that was revealed to him in previous inspections. I never would've considered the property had I known this information. Also, although I cancelled the contract within the option period, the seller hasn't released my earnest money. It's been three weeks, and I can't make an offer on another house without it.

Answer: There is no provision for you to recover the cost of that inspection. However, if you file suit in a justice of the peace court, you can potentially recover the cost of the inspection plus court costs. As to your question about earnest money, contact the title company or your real estate agent with your concerns. If you have not made a request for your earnest money's return according to the terms of your contract, you need to make it now. Read Section 18, Escrow, Paragraphs C and D.

Dear George: My buyer's representation agreement has expired. Although I'm still looking for a house, I don't want to use the same agent again. Paragraph 11G, Protection Period, of my expired representation agreement seems to say it continues for another 30 days. It also looks like the broker can send me information on other properties within 10 days after agreement ends, and if I acquire any of those property within the protection period, I still pay broker. Am I interpreting this correctly? If I don't want to use this agent again, am I still bound to her if she e-mailed me properties to look at? These are the same homes I've found myself on www.har.com, available to anyone on the internet. Do I really still have to pay her fee if I find something that was in her email, even if she doesn't show me the property?

Answer: Paragraph 11G, Protection Period, in the Residential Buyer/Tenant Representation Agreement has contingencies before it becomes effective. For example, did the real estate broker whose rep agreement you signed send you a written list of the properties that he or his agent called to your attention? If so, did you receive it within 10 days after your agreement expired? Keep in mind, this list can be only for properties to which you were introduced during the representation agreement, not after that agreement expired. Even if all that occurred, if you have a different brokerage with whom you wish to deal, then that whole clause in 11G has no force or effect once you sign with the other brokerage. Finally, again assuming that the events outlined above did actually occur, it is only a few days until it has no force or effect at all since it only applies for 30 days.