My son Craig put in an offer through a realtor for a bank owned property in Atlantic City. Many weeks passed before the offer was accepted. The contract has a penciled in “As Is” line which Craig initialed. His purpose for buying the home was to use it as his primary residence.
The seller was supposed to take care of all the needed repairs and actions leading to a new Certificate of Occupancy. Upon getting an appraisal report from Craig’s lender, he learned that there were many items to be fixed which would be required for a C.O to be issued. The seller says that he is not responsible for these repairs because of the “As is” clause.
Also, the contract had an N.A. typed in by the flood insurance clause. Craig has now come to learn that flood insurance is indeed needed and is very expensive.
Craig is not in a financial position to make repairs needed for the C.O which was the responsibility of the seller. He is not in a position to afford the home with the yearly 2900 for Homeowner/Flood Insurance.
Consequently, Craig is no longer interested in having a home which is in disrepair and is in a flood zone.
And, since Craig cannot obtain financing until a second final appraisal is done showing that all repair items are fixed, he cannot proceed with the purchase because he will not be able to get his mortgage.
He is seeking a release from the contract of sale and return of his $1000 deposit as the seller has not made needed repairs to obtain a C.O. nor have they been forthright in the description of the home as being in a flood zone
The sellers are now claiming that he is in breach of contract. What are his options?
