QUESTION
I have chosen to not pursue closing on a beach lot in Hampton, VA. What risk do I face?
Asked on Dec 23rd, 2013 on Residential Real Estate - Virginia
More details to this question:
My wife and entered into a contract to purchase a beach lot in Hampton VA for $360k to close on or before 15 Feb 2014. I included a provision in the contract that the lot must be zoned X (preferred flood risk). I then spoke with the Hampton VA flood engineer who said the new preliminary FEMA maps had been received and that the lot we purchased was either adjacent to or now in the high risk flood zone, but that this informaion would not be releasable to the public for 9 months (approx Sept 2014). Because I don't want to run the risk of buying or building in a flood zone, I contacted the seller to say that based on this new information, I don't intend to close on the lot. I offered the seller to split the deposit and I would release it back to him to put back on the market. Otherwise, I would attempt to flip the contract until the proposed closing date. Seller contacted me today to say that he had legal advice and plans to pursue a legal remedy to force me to complete sale. Your advice?
1 ANSWER
Have a lawyer go through the contract with a fine tooth comb to look for an out, perhaps some necessary language is missing (Virginia law requires a lot of notices of various types). I doubt they can force you to buy it but if they re-market the property and it sells for less than 360K, you will probably be on the hook for the difference, plus the legal fees and commission. Would the engineer get in trouble if he officially gave you the information that you received in private? If you have a loan contingency, perhaps a word to the lender about the flood map might get your loan canceled and allow you an out. I'd strongly suggest seeing a good real estate lawyer as you've got quite a pickle there. Good luck.
Answered on Dec 24th, 2013 at 8:29 PM