This issue takes place in Georgia. Back in April, our real estate agent informs us she has just come from a listing appointment of a house we may be interested in. We go to check it out, and really like it, and choose to move forward on it. The house never gets listed to the public. Because our agent was the agent of the sellers, she informs us that her associate will be the seller’s agent. We go through the normal process of a home inspection, etc.
Home inspection reveals a gas furnace that needs to be condemned. Dangerous degree of disrepair. We negotiate getting a new furnace; our realtor informs us of a woman (Jane Doe) with whom XYZ Realty has had a long history of positive business, and that this woman should handle quoting the new furnace. We are informed that it will cost $3,000 for a new gas furnace, OR $3,500 to go all electric (new electric heat pump plus new unit outside). We request the all new electric setup. The sellers agree to pay up to $3,000, with us paying the difference ($500). We never see nor sign any paperwork for our portion of this transaction. The contract of the home is given an amendment with required repairs, including “Seller to replace HVAC system w/ electric heat pump up to $3,000". The sellers get a second opinion on HVAC quote; after this second opinion, the elect to use Jane Doe to do the job because its less expensive.
At this point, I communicated to my realtor (May 10th) that I assumed that the person doing the HVAC work would be A) licensed, and B) would pull permits for the work. I am never given verification; I am only reminded of a long positive business history between XYZ Realty & Jane Doe. The new HVAC installation occurs between June 14th–16th.
At some point, either the visit to provide a quote, or the first day of installation, when Jane Doe comes to the house, she asks the sellers for the square footage of the home. The seller tells her “1100-&-something”. Jane Doe did not do proper calculations or measurements in order to determine what would be needed for proper HVAC operation in the house. Instead, she goes off what the seller told her.
We close on the house on July 1st; our realtor instructs us to make out a check to Jane Doe for $500 and she will deliver it.
In the days after that, we notice that the temperature is not getting below mid-70’s. This is not a severe issue; many houses operate at that temperature and it feels wonderful. But the humidity level feels very high. It reaches high 70’s even late in the evening, with the thermostat on 70. It hits 80 degrees multiple times. It is very hot & stuffy, even in the cool of the evening. To the best of my understanding, the unit has not cycled off since we moved in on July 1st.
Jane Doe makes a service visit, but does nothing to remedy the situation. My father, who is a service manager for a prominent heating & air company, fears that all our symptoms point to an undersized unit. I attempt to have XYZ Realty & Jane Doe remedy the situation. Jane Doe assures me she has done what she’s been asked to do, and there’s nothing else she can do. When I inform her of accurate square footage of the house (appraisal = 1485, insurance = 1535), she states in the affirmative that I need a bigger unit.
A lot of back & forth emails are exchanged between me & XYZ Realty. They do not budge on responsibility. The owner offers me $2,000 to buy the current unit from me. But that will cause me to “eat” $1,000, plus all the additional costs to get the HVAC system I need. They inform me that as the buyer, I was not privy to speaking into the hiring of the HVAC contractor, because I was not yet the owner of the house.
We cancel our check; we had informed our realtor to hold onto the check until the HVAC was fixed, but she chose to go ahead and give it to Jane Doe after her visit to attempt to fix the problem. We did not give her permission to give the check; therefore, I’m glad we canceled it. I demand for XYZ Realty to send me quotes & invoices for the HVAC job. The quote for the HVAC work is written to XYZ Realty alone. The invoice is written to both XYX Realty and the sellers.
It occurs to me to do some investigating. I check the Secretary of State of Georgia's online database to search professional licensing. Jane Doe’s name is nowhere to be found, nor is the name of her business. I call the office and get them to search, and I give them Jane Doe’s number to search as well. Nothing comes up. I also call the county’s community development department. I ask them to search my address for any and all recent permits. There are no HVAC permits, and there are no electrical permits (both are required, and both would have to be pulled by a licensed professional)
I bring this information to the attention of XYZ Realty. They try to pass off communication to Jane Doe, but I inform them that I have no reason to communicate with her because A) I was not involved in the transaction with her, and B) her lack of professional licensing & credibility makes my communication with her null & void.
I have communicated that I expect XYZ Realty to remedy my situation because they are responsible for bringing an unlicensed individual into a transition that directly affected both our negotiations of our home & its selling price, and the safety & wellbeing of me and my family. XYZ Realty cannot find licensing info for Jane Doe nor any permit numbers (despite a long history of business transaction?), and they have offered to reimburse me to have an independent licensed professional come inspect our HVAC system. However, they refuse to be billed directly; they will only reimburse me, which frankly, I have little faith in them to do this, or at least do this in a timely manner. XYZ Realty refuses to bear financial responsibility for the remedy of my current situation regarding my HVAC system, despite the fact they directly recommended & encouraged sellers to use an unlicensed individual.
What is my next step? Who is at fault? Do I have a case?
Home inspection reveals a gas furnace that needs to be condemned. Dangerous degree of disrepair. We negotiate getting a new furnace; our realtor informs us of a woman (Jane Doe) with whom XYZ Realty has had a long history of positive business, and that this woman should handle quoting the new furnace. We are informed that it will cost $3,000 for a new gas furnace, OR $3,500 to go all electric (new electric heat pump plus new unit outside). We request the all new electric setup. The sellers agree to pay up to $3,000, with us paying the difference ($500). We never see nor sign any paperwork for our portion of this transaction. The contract of the home is given an amendment with required repairs, including “Seller to replace HVAC system w/ electric heat pump up to $3,000". The sellers get a second opinion on HVAC quote; after this second opinion, the elect to use Jane Doe to do the job because its less expensive.
At this point, I communicated to my realtor (May 10th) that I assumed that the person doing the HVAC work would be A) licensed, and B) would pull permits for the work. I am never given verification; I am only reminded of a long positive business history between XYZ Realty & Jane Doe. The new HVAC installation occurs between June 14th–16th.
At some point, either the visit to provide a quote, or the first day of installation, when Jane Doe comes to the house, she asks the sellers for the square footage of the home. The seller tells her “1100-&-something”. Jane Doe did not do proper calculations or measurements in order to determine what would be needed for proper HVAC operation in the house. Instead, she goes off what the seller told her.
We close on the house on July 1st; our realtor instructs us to make out a check to Jane Doe for $500 and she will deliver it.
In the days after that, we notice that the temperature is not getting below mid-70’s. This is not a severe issue; many houses operate at that temperature and it feels wonderful. But the humidity level feels very high. It reaches high 70’s even late in the evening, with the thermostat on 70. It hits 80 degrees multiple times. It is very hot & stuffy, even in the cool of the evening. To the best of my understanding, the unit has not cycled off since we moved in on July 1st.
Jane Doe makes a service visit, but does nothing to remedy the situation. My father, who is a service manager for a prominent heating & air company, fears that all our symptoms point to an undersized unit. I attempt to have XYZ Realty & Jane Doe remedy the situation. Jane Doe assures me she has done what she’s been asked to do, and there’s nothing else she can do. When I inform her of accurate square footage of the house (appraisal = 1485, insurance = 1535), she states in the affirmative that I need a bigger unit.
A lot of back & forth emails are exchanged between me & XYZ Realty. They do not budge on responsibility. The owner offers me $2,000 to buy the current unit from me. But that will cause me to “eat” $1,000, plus all the additional costs to get the HVAC system I need. They inform me that as the buyer, I was not privy to speaking into the hiring of the HVAC contractor, because I was not yet the owner of the house.
We cancel our check; we had informed our realtor to hold onto the check until the HVAC was fixed, but she chose to go ahead and give it to Jane Doe after her visit to attempt to fix the problem. We did not give her permission to give the check; therefore, I’m glad we canceled it. I demand for XYZ Realty to send me quotes & invoices for the HVAC job. The quote for the HVAC work is written to XYZ Realty alone. The invoice is written to both XYX Realty and the sellers.
It occurs to me to do some investigating. I check the Secretary of State of Georgia's online database to search professional licensing. Jane Doe’s name is nowhere to be found, nor is the name of her business. I call the office and get them to search, and I give them Jane Doe’s number to search as well. Nothing comes up. I also call the county’s community development department. I ask them to search my address for any and all recent permits. There are no HVAC permits, and there are no electrical permits (both are required, and both would have to be pulled by a licensed professional)
I bring this information to the attention of XYZ Realty. They try to pass off communication to Jane Doe, but I inform them that I have no reason to communicate with her because A) I was not involved in the transaction with her, and B) her lack of professional licensing & credibility makes my communication with her null & void.
I have communicated that I expect XYZ Realty to remedy my situation because they are responsible for bringing an unlicensed individual into a transition that directly affected both our negotiations of our home & its selling price, and the safety & wellbeing of me and my family. XYZ Realty cannot find licensing info for Jane Doe nor any permit numbers (despite a long history of business transaction?), and they have offered to reimburse me to have an independent licensed professional come inspect our HVAC system. However, they refuse to be billed directly; they will only reimburse me, which frankly, I have little faith in them to do this, or at least do this in a timely manner. XYZ Realty refuses to bear financial responsibility for the remedy of my current situation regarding my HVAC system, despite the fact they directly recommended & encouraged sellers to use an unlicensed individual.
What is my next step? Who is at fault? Do I have a case?
Contractors and Subcontractors: Is Realty Agency Liable for Hvac Work
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