Profile picture for UCSDKID

Do I have a right to get reimbursed for the Appraisal and Home Inspection

I have a rather unusual problem and would love some insight from professionals.  My wife and I recently went into escrow on a REO home. After having the home inspection ($200) and appraisal ($400) completed, it was then discovered that the title can't be transferred.  Here is where it gets interesting...
The home was built in 2006 as part of a large development track.  Apparently the original plans called for 5 houses on this small cul-de-sac, but they revised the plans to include 6 houses.  The city never got the revised plans and so they show only 5 houses.  Because of this, the house address does not match the APN number (whatever that is...something to do with property identification) and so the home I bid on based on APN is actually the neighbors house (which is occupied).  As if that wasn't bad enough, EVERY house on the street is incorrect as the APN and street addresses do not match.  We spoke with the person at the city office and apparently they have been aware of the issue and will not be able to fix the problem for at least another 3+ months (they have known about it for almost 2 years now and it still hasn't been resolved).
Given the title can't be transferred because of this issue and my wife and I can't wait 3+ months with our first child on the way, we (and the bank) agreed to end the sell.  Now, they are refunding me my deposit (as they should) but they are being a little stubborn about refunding me the appraisal and home inspection.  I argued that the home should have never been listed if the title couldn't be transferred and it was their oversight that led to me paying those expenses.

Do I have any grounds here for getting my money back?

Thanks in advance for the advice.
  • July 22 2009 - Hesperia
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Answers (2)

Profile picture for adamshelton
It appears that the REO Company (or bank) operated in good faith in this transaction, and as such, you are not entitled to a refund of the appraisal or home inspection costs.  Unfortunately, these items are simply the "cost of doing business" when you need a loan to purchase a home.  The home inspection and appraisal are done at YOUR request, as a requirement of your loan with YOUR mortgage company or bank.  The REO Company  doesn't really have a horse in this race.  If it's any consolation, the REO Company has a much larger issue on their hands in that they have unmarketable title and a (presently) worthless deed.

Regards
  • July 22 2009
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Profile picture for mysql
I'd say that whatever legal costs you'll incur to try to get the money back will far exceed the money you are trying to recover.
  • July 22 2009
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