Who is responsible for this repair?

Factual Questions
1

I am in the process of closing on a home.

I just got an email from bank “A” the one i am doing the financing with. Saying that i will be billed in escrow for repairs they have to make to a broken well conduit.

I don’t even own the house!

Shouldn’t Bank “b” The owner of the mortgage be responsible?

2

It depends on the sales agreement. If you are buying the house, and the sales agreement doesn’t say that they have to fix the broken conduit (which may or may not be lumped under some other clause about the condition of the house), then you are buying a house with a broken conduit. If you want it fixed, it’s on your nickel.

If bank A wants it fixed before they’ll approve the financing, then you’re kinda stuck paying for it. Since this is coming out of escrow, it seems like the repair is somehow included in the sale, and is being paid for out of the sale price. It sounds to me like bank A is putting the money for it in escrow so that the seller can’t just go and spend the money on something else and screw you over, so in a way, bank A is protecting you (actually they are protecting their investment, but it ends up helping you too).

3

That depends. If you have waved all contingencies without making note of the well then it is your dime. Your bank is wanting the work done before they lend the money on the house.

I can assume when you did your inspections the problem with the well was found. That was the time to modify your offer requiring the seller to repair the problem.

As an example I purchased a house that had no furnace. After the inspections before clearing all contingencies my agent submittted the clause “seller to pay for installing a new forced air heating system, the cost not to exceed $5,100.” The house now has a new heating system paid for by the seller. Your agent should have suggested doing the same.

By the bank saying that you will be billed out of escrow means at the time of escrow the cost of the repairs will be added to your column of expences. And from money collected from you the escrow company will pay the repair company.