Does a lien attached to all fixed equipment?

What's your take on this?

Owner of a property is having to short sale his house. He's insisting that he is taking his generator (not portable) and Rinnai tankless water heater which are both affixed to the house.

Q: The owner disclosed that the two pieces of equipment affixed to the house do not convey with the property. The buyer is insisting to write it up in the contract. Will the bank allow the seller to take it once they see it in the contract and in the MLS advertisement?

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Permalink Reply by Harry Clay on August 18, 2011 at 10:34pm

You already answered your question:

"The owner disclosed that the two pieces of equipment affixed to the house do not convey with the property."

But the buyer wants to counter:

"The buyer is insisting to write it up in the contract."

Someone is going to have to bend if you're going to have a binding contract, which evidently, does not yet exist.

It is between the seller & the buyer, not the bank. It doesn't really matter what the MLS says.

What matters is what is eventually written & agreed to in the executed RPA.

However, will the buyer be able to fund his loan if there is no water heater?

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Permalink Reply by Woody Edwards on August 21, 2011 at 12:01pm

Harry is exactly right.....you don't have a contract until the buyer and seller agree, sign & initial all changes. He is also right in that the buyers loan may not fund without a water heater. I would check with the loan officer that signed the pre-qual letter before going too far.

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Permalink Reply by Kieran Jackson on August 21, 2011 at 12:16pm

Why not have the seller install a cheap, new water heater? That's just one day of work. Then sign the contract.

All the best,

~Kieran~

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Permalink Reply by Thom Colby 888-391-5245 CA Brkr on August 21, 2011 at 4:43pm

This is "Real Estate 101". You work for the BUYER. If the Buyer is telling you their offer includes these items, then write it up that way and expect a counter or don't represent the Buyer. You already know you are getting either a counter regarding the two items or no response what-so-ever.

You might also want to notice your buyer that their loan may require a Water Heater to be installed prior to closing. If that's the case, based on what little we know, I would NOT suggest the Buyer pay for it as it may never close anyway.

If you wanth to continue to work with this Buyer, make sure you have additional properties to show them !

Best of luck,

Thom Colby

Broker

Newport Beach CA