REFLECTOR: OFF TOPIC: Buying Inventory House From Kimball HillHomes

Milton Mersky miltonm at airmail.net
Sun Apr 27 15:41:21 CDT 2008


Brian:

In addition, please consider employing the service of an honest contractor 
for each category and have them give you a written report as to encountered 
problems.

milt



----- Original Message ----- 
From: "Chuck Jensen" <cjensen at dts9000.com>
To: "Velocity Aircraft Owners and Builders list" <reflector at tvbf.org>
Sent: Sunday, April 27, 2008 2:42 PM
Subject: Re: REFLECTOR: OFF TOPIC: Buying Inventory House From Kimball 
HillHomes


> Brian,
>
> Don't take this as gospel or to the bank, but I have been around this 
> block a few times, so I'll offer a couple ideas.  First, there should be 
> an iron-clad Title Opinion on the property.  This should include back 
> taxes, liens and encumbrances.  Second, you should make sure that you 
> purchase Title Insurance on the property.  An attorney will have his name 
> on the line for the Opinion and the Title Company will have there's on the 
> line for the Insurance.  This is not a perfect guarantee against trouble, 
> but if war breaks out, you won't be alone in the trenches.
>
> You should also asked for a signed statement by Kimball that there are no 
> liens, encumbrances, or prospective ones, against the property that they 
> are aware of and that all subcontractors have been paid in full.  The 
> statement should be from an "authorized" representative of Kimball and it 
> should be notarized.  Normally, the builder might squawk about this, but 
> they want to unload inventory so bad right now, they may be more 
> accommodating than usual.
>
> Wells Fargo is a solid, squared away company (for a mortgage company, 
> anyhow) and should be an ally.  However, you can not legally rely on 
> anything they say as they have no fiduciary duty to you...but they don't 
> want to walk into a mess either, so they'll be cautious as well.
>
> Finally, all of this stuff gets sticky and tricky under such 
> circumstances.  I believe it is money well spent to hire a good real 
> estate attorney to look over the deal.  He may not give it a clean bill of 
> health, but at least he will be able to tell you where the potholes are, 
> so that you can assess the risk and whether you are welling to accept 
> them.  You may want to ask Kimball for them to pay for your attorney given 
> the "inconvenience" they are putting you through.  No matter who pays the 
> attorney, make it perfectly clear to the attorney he is working for YOU, 
> and not Kimball, even if they are picking up the tab.
>
> Just a couple ideas.
>
> Chuck Jensen
>
>
>
> -----Original Message-----
> From: reflector-bounces at tvbf.org [mailto:reflector-bounces at tvbf.org]On
> Behalf Of Brian Michalk
> Sent: Sunday, April 27, 2008 2:52 PM
> To: Velocity Aircraft Owners and Builders list
> Subject: REFLECTOR: OFF TOPIC: Buying Inventory House From Kimball Hill
> Homes
>
>
> The reflector is the most diverse group of people I know, so I am asking
> for some help or directions to other resources.
>
> Teresa and I were supposed to close on a house on Friday, and it got
> postponed to This coming Tuesday because Kimball Hill Homes is filing
> Chapter 11.
>
> We are financing through Kimball's partner, Wells Fargo.  It's an
> inventory home, completely finished.
>
> I am worried about the 10 year foundation warranty, and three year
> appliance warranty.  I am also worried about contractor liens being
> placed on the house.
>
> At this time, I am inclined to bring a lawyer to the closing.
>
> Thoughts?  Please email me off the reflector.
>
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