Dangerous Defects: When Sellers Won't Respond

: Richard Montgomery on Feb 18, 2025

Dear Monty: We're under contract on the house, and it's been a NIGHTMARE. Our inspection revealed illegal and dangerous gas venting in the basement, but we didn't get the report for two weeks. The delay puts us close to the end of our due diligence. We put down $3,000 in earnest money plus $5,000 in contingency money. The seller doesn't return phone calls or meet face-to-face -- everything's by email, and he only checks his computer at work. Our agent won't deliver documents in person to the seller's house. I think he's given up on us.

We're worried the seller won't let the appraiser in on time. Can we legally force him to fix the dangerous code violations? We're supposed to close with the seller renting back for five days. It feels like we're fighting a DARK FORCE. What are our legal rights here?

Monty's Answer: Illegal gas venting is a major red flag that could pose life-threatening risks. This code violation isn't just a repair issue; it's a safety hazard that likely violates local building codes. As material defects, code violations typically must be disclosed and remediated by sellers. The delayed inspection report has compressed your decision-making window unfairly. While you have a deadline, you may have grounds to request an extension based on the delayed report delivery. The "reasonable time" standard to review and respond to inspection findings is likely contractually protected. Your contract likely includes a provision requiring the seller to provide reasonable access for the appraisal. If the seller blocks access, they would be in breach of contract. Document all communication attempts regarding appraisal scheduling.

Here is what you need to do:

No. 1: Send a formal written notice (through certified mail) detailing the code violations and safety hazards discovered during the inspection to the seller. The notice creates a paper trail and triggers legal disclosure requirements.

No. 2: Contact your local building department to inquire about the gas venting code requirements. They may be interested in investigating an illegal and dangerous installation.

No. 3: Request an immediate meeting with your agent's managing broker. Given the communication challenges, your agent's unwillingness to deliver documents in person is concerning. The broker needs to know about this situation.

No. 4: Review your purchase agreement carefully regarding the $5,000 contingency deposit. There should be specific terms about its refundability.

No. 5: Engage a competent real estate attorney immediately. The combination of safety issues, communication barriers and compressed timelines puts you at risk.

The Rent-Back Agreement

The planned rent-back arrangement adds another layer of risk, given the seller's current behavior. If you proceed, you'll need a rental agreement with ironclad terms regarding:

-- Security deposit

-- Daily rate if they stay beyond the original agreed-upon date

-- Property condition requirements

-- Utility responsibilities

-- Insurance coverage during their occupancy

Your "dark force" comment reminds me that real estate transactions are governed by contracts and laws, not seller whims. Don't let the pressure of timelines force you into accepting dangerous conditions or unfair terms. You have leverage here: The seller must address or disclose the code violations to future buyers. Most buyers will walk away from illegal gas venting, making your reasonable repair requests the better option for the seller.

Remember: No house is worth risking your safety or financial security. Stand firm on the code violations. They're not negotiable.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.

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