Should You Foot the Bill
For Unexpected Damage?

Question: When we bought our house, we had a final walk-through after the seller had moved out. We noted a few scrapes on the walls, but the home was pretty much in the same condition as when we first saw it. However, when we moved in a few days later, there were holes in the walls, a window had been broken, and something gooey was rubbed into the carpet. The sellers later admitted to our agent that they had allowed their teenage son to throw a party in the house. But they said that because title had now changed, they would not pay for the clean-up. What can we do?

-- Sarah, Portland, Ore.

Sarah: You've fallen into one of the gray areas of buying a home. The purpose of the final walk-through is to assure you, the buyer, that the home is in the same condition as when you first saw it. That's why the walk-through should be as close to the transfer of possession as possible.

You did the right thing by waiting until the sellers had moved out before checking out the property. However, assuming that you then immediately went to the title company to sign your loan documents, there's often still a few days before your mortgage is funded, the title changes and you get the keys to the house. That's the gray area during which things such as this can happen.

The seller's agent should have taken possession of the keys after the walk-through and kept the house secure until you got it. However, until title transfer, it remains the property of the sellers and they often have extra sets of keys.  Allowing a party in the house, especially with serious damage occurring, is certainly unconscionable.

I hope you took pictures of the property as you found it and had someone such as your agent or friend walk through with you and make notes of the damage. Keep track of all your bills (you're unlikely to be compensated for any repair and clean-up work you did yourself).

I would send a letter to the sellers and their agent insisting that you be paid for restoring the property to its original condition. Their agent may pressure the sellers to go along. If they don't agree, I would have an attorney send a similar letter. Sometimes a request on a lawyer's letterhead does wonders. Finally, if all else fails, I would take the seller to small-claims court.

Your situation is unusual, but you are entitled to a home in the same condition as when you first saw it.

-- Mr. Irwin has more than 25 years' experience as a Los Angeles-area real-estate broker. He is the author of more than two dozen books about real estate and is recognized as one of the most knowledgeable writers in the real-estate field. Mr. Irwin's most recent books are "How to Get Started in Real Estate Investing" and "How to Buy a Home When You Can't Afford It" (McGraw-Hill, 2002).

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