Hurricane Havoc
I put 5K down on a nice condohotel deal in Daytona Beach scheduled to close on or before Sept 23. I wavied the "subject to appraisal " contigency since I was prepared to pay up to 50% down in order to aquire this very desireable oceanfront rental unit which had other full priced offers coming in on it. I figured it would only appraise at around 90% of the asking price and then Id just make up the difference to get 80% financing. Unfortunately hurricane Frances blew out the picture window and trashed the entire 655 square foot unit. The standard Contract for Sale and Purchase ( Florida Association of Realtors and the Florida Bar) was used. Can anyone tell me if I will still be obligated to close on a property which was ruined by a hurricane ? My realtor says that I am still obligated so long as they can restore the property to the condition it was in prior to the hurricane and when I made the offer. I can appreciate this ,, but who will be the judge of these repairs ? I mean ,,, they may be able to fix up the unit so that it looks as good as new on the surface ,all the while other hidden structural problems may well still exist. The place was subjected to hard driven wind and saltwater rain for over 24 hours non stop and must be penetrated within each and every crack and creavice with destructive elements. Can anyone render some advise from experience of this sort of thing . Id still like to get the unit ,, but do not want to pay top dollar for a unit that will never really be the same ,short of gutting it totally and starting from scratch. How are situations like this generally handled ? Thanks very much !
I would have the sellers claim it on their insurance so that it will pay to have everything professionally done and at least then you have a bit of a liability with the companies that did the work. Do you have the money to buy it as-is and repair it? If thats the case you might be able to get a good deal.
Quote:
On 2004-09-09 23:49, jeff12002 wrote:
I'm not speaking from experience here, but I would recommend having a thorough inspection made by a professional inspection service, and consult with your future homeowners policy underwriter regarding insurability, and subsequent damage discovery etc. prior to closing.
Good luck,
Jeff
<font size=-1>[ Edited by jeff12002 on Date 09/09/2004 ]</font>
You may have your attorney review the contract, but I believe your Realtor has informed you correctly. IF you don't believe it is possible for the unit to be "restored", you will have to have a professional back up your opinion. I would recommend a professional home inspection (If you've already had one prior, they may give you a discount).
If an insurance claim is filed, they will require licensed professionals to complete the work, assuring it is done properly. You may be surprised by what these folks can do.
Good Luck!
You negotiate like this. First, ask for a copy of the sellers insurance policy. Second, find a good public adjuster. Take the policy to him. Have him give you a quote for how much the insurance company will pay to make the repairs. Then negotiate an as-is price along with assignment of the insuranc proceeds. If you do these things well you may even profit from Frances..
Thank you all for the insightful advice !