Interested in a property in houston TX, agreed on a price with the seller and sent out the contract and things got a little messy.
1. They wanted to close super fast
2. Seller told us that they don’t want to purchase a new survey and if the title company doesn’t accept the one from 2022 that we would need to purchase a new one. Which we agreed to.
Now that we agreed to all their terms the sellers agent told us if the title company says the property is smaller than what’s written then the price won’t be adjusted.
My realtor is telling me that he’s never seen this and frankly I don’t have enough experience to know what’s going on. Looking for any outlook that can be provided.
For more context this is 2 vacant lots that are next to each other and I want to build townhomes on them. Thanks in advance.
Posted by HPAX123
3 Comments
This is somewhat common and shows up here often where people make an offer, then their survey shows smaller house, then they try to get a discount. The reality is people measure square footage differently — some inside walls, some midpoint, some outside. Some include only living spaces, others take into account decks or sunrooms or garages. This is pretty common confusion and the seller’s agent is trying to get ahead of it. Either way, if you are knocking down to build townhomes, who cares about square footage of house. You really care about the lot and easements.
IT is possible they misrepresented the place, but if you saw it and think you have a fair deal, then I wouldn’t worry too much.
On the bright side, ideally, you should still have a contingency in place like inspection you could use just in case.
Lastly, are you sure you have zoning approval to do the townhomes? that could quickly derail your plans or make the math not possible if you have to hold for months.
As a builder, surely you know that you are responsible for verifying that the property is suitable. There should be a clause in the contract about “suitability for intended use”, which is generally called a feasibility contingency.
The seller’s attorney, or their savvy broker, is protecting the seller from a future claim by you that the property isn’t suitable for your plans. The seller legally can’t warrant that the surveyor accurately measured the property.
I strongly suggest you get your own survey, and after that, make sure you’ve taken it into your building and zoning department to verify that your project can be built on this property.
It can take a long time to get a survey, so that would worry me. You seem to be kind of inexperienced to be planning on building a spec home if you are stymied by a question like this. Also, what does the title company have to do with this? Check with the zoning department and make sure that the potentially smaller footprint won’t result in unbuildable parcels.