Any realtors here or anybody have words of wisdom with home bill of sale addendum?

[NickW]

Are there any realtors on the forum? We accepted an offer on our house a couple of weeks ago. Our realtor sent an addendum for me to sign and I am refusing as I feel it isn't worded correctly...

The home sale includes many "extra" items. The "bigger" items are a 3+ year supply of firewood, solar array, stand air compressor, hot tub and pool table.

The addendum has a statement saying that "the personal property items have no value". This is for the buyers bank/financing. I want it to state "the personal property items have no value associated to the buyers financing". Am I nuts? If the appraisal comes in low I'm concerned that the buyers are going to try to re-negotiate, which I will walk away from. We took the bottom dollar of our range. Now the dollars won't be a problem because they will only be financing about 55% of the purchase price.

The solar array is only 5 years old and is paid off. The original loan for it would have gone for another 5 years yet, so what financial institution would have financing on something with "no value"? The other items are kind "whatever", but the firewood value is probably about 5k here. If it has "no value" I should just rip the solar panels and hot tub out, disassemble the pool table, and haul it all with the firewood to the new house...

Words of wisdom? Am I nuts? I'm waiting for my bank to open to talk to the loan officer...😡

 

[stoveliker]

I have no legal knowledge here, but if the buyers are not willing to put money on the table (or, I think here, no $$ get taken off the offer if you remove the "no value items" before transferring the property), and it's worth the effort to you, I'd remove the items...

 

[all night moe]

Consultation with a relator attorney may be advisable.

 

[NickW]

These items were included in the listing, the buyers want them, and they are part of the agreed upon sale. I simply want the addendum statement for the bank worded correctly and it seems like neither realtor wants to rewrite the addendum, so I'm getting frustrated...

 

[blades]

I wood not sign that. Is the solar array on the house or free standing? The addendum should have been included in their original offer not as an after thought. You have not supplied much info on the solar loan. I assume that it would be paid off out of purchase price at closing? If so that should have been included in your original asking price. and yes the firewood , pool table and compressor are not really value additive items. Last place I sold I had a 9x4.5 tournament Brunswick pool table in basement. Made deal, they got the table and I didn't have to pay for Radon mitigation system ( i sure as H didn't want to move that table - 1.75" thick, 3 piece Slate top again) The 30 cords of firewood on the lot never came up. I had pulled the wood furnace out prior to listing , but there was still a wood stove on main floor. Mostly because I knew that would be an issue with some banks and insurance companies. Sold home it before the listing even hit the market.

 

[stoveliker]

Then the question is whether there are (tax) consequences for you having the $$ they are in fact paying for the PV and wood etc. classified as being paid for the home?
I.e. you're getting more for the home than you in fact are.

 

[NickW]

Solar is roof mounted on the attached garage and paid off. The contract details are agreed upon by both sides. I think the realtor's are just being lazy not rewriting the addendum correctly and possibly stupid.

I don't want to sign a false statement (no value). I will sign "no value associated to the buyers financing". We pay no taxes as the seller. We will be below the capital gains threshold for a couple.

I don't understand how permanently installed equipment critical to the energy efficiency of the house can be assigned "no value".

 

[Gearhead660]

The realtor on your side sound be on "your side" and amend if you so choose. Feel free to message me, my wife is a realtor. I can see what she says about the wording.

 

[EbS-P]

I don't understand how permanently installed equipment critical to the energy efficiency of the house can be assigned "no value".

Are “fixtures” counted as personal property? You can move your stove and fridge. Not a fixture.

Are they wanting this in case you leave something then want money for it?

 

[NickW]

As I understand it, a hot tub is "permanent" if installed in a deck or underground but not if on a slab. I can't understand why solar panels installed on rails screwed to a roof and wired through conduit permanently attached to the roof to an inverter and dual meter are not "permanent".

The purchase is agreed upon by both parties. The wording in the addendum "no value" is my issue. I feel like I would be committing perjury by signing it. I think it should read "no value associated to the buyers financing", which my bank says their lender may take issue with...

Their bank apparently wants the "no value". If I leave something once they have legal possession of the property I can't request additional money without a written agreement.

 

[John Galt]

Not an attorney, etc. I have bought and sold lots of houses. I have always been told that anything on the property when the closing occurs is transferred to the buyer. You can't come back and start removing items after the sale, it doesn't matter permanent or not. In Texas, anything screwed, nailed or bolted is considered fixed or permanent. In Mexico, the walls and floors are the only thing being sold all light and plumbing fixtures can be removed.

I can see the bank wanting to distinguish that the house is worth the sale price and anything else on the property has nothing to do with what they are financing, it's the bank covering their ass. Transferring items that have value can trigger a gift tax, saying they have no value is a lie and can also have consequences. The initial contract should state what is included with the sale, that's the contract they signed. If they don't want the items, remove them. Someone will always take free stuff.

 

[EatenByLimestone]

You don’t have an attorney representing your interests? I recommend getting one as laws change state by state. I think you’re wise to not sign something you’re not comfortable signing. An attorney may feel this fear is justified or may be able to soothe those fears if they are not. I recommend paying the few hundred dollars to have your tush protected.

 

[NickW]

I convinced my realtor to request the buyers realtor to change the verbage and have now signed the revised Addendum.

I have had many property transactions, although most have been professional cash transactions rather than personal transactions. Some of the professional ones have involved financing but not personal property. Had never seen that verbage before and just couldn't certify a lie.

No I don't keep a lawyer on retainer but was getting ready to make the call if this went south. I have consulted with them regarding other transactions.

 

[stoveliker]

I've walked away from something where a bank asked me to sign something that was not correct (re tax law) and not needed, and they were not willing to change their verbiage.
Happy it got resolved for you.