Newsflash: First Time Buyer-Need advice before closing

Hi All,Three days before my escrow closing date the handyman who was suppose to fix the heater (water source heater) used a wrong pipe and caused a flood to happen on the first floor overnight. It’s an empty unit. The neighbor called HOA and they were able to shut off the valve and stop the leak. However it is an attached condo with two common walls which caused both neighboring units to have water damage as well. Insurance will only cover my own unit and not the neighbors. The unit i’m purchasing has been fixed and set to go. The problem is with the neighbor unit. The seller decided to be a good neighbor pay for both units out of pocket. One unit agreed and signed a release form. The other unit is not cooperative and will not accept the payment/work done to his unit and will not sign the release form. It’s been a headache with what the neighbor really wants because he doesn’t even have insurance for his unit.Now I as the buyer had to extend escrow because of the flood. The seller tried to take care of both units and get the release form before closing but it seems that since the one unit is not cooperative we wont be able to get a release form from his unit before closing. We are not sure of his motives (seller offered him compensation over the appraised value for his flooring to be completely redone). For me as a first time buyer I don’t want to get involved after I close escrow and take ownership. My question is as the buyer will I be safe from this case that happened during escrow and complete the deal or should I walk away? I don’t want to be caught in the middle of this sticky situation in case of lawsuits and so forth.Any help/advice would be much appreciated!

Read more at https://www.reddit.com/r/RealEstate/comments/6mgax4/first_time_buyerneed_advice_before_closing/?utm_source=ifttt

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