Tuesday, November 17, 2015

AS-IS in Real Estate Purchases & The Request For Repairs....Another Saga.

Every home sale in Southern California is sold AS-IS. Stated right there in the offer on page 5, section 11.

But, also as stated in that very same section, seller has to disclose material defects and buyer is strongly urged to do an inspection.

So, based upon my buyers' desire to own a particular home we write an offer and add in Request for Repairs No. ONE indicating no repairs or credits will be requested.

But, yikes, we do our inspections and see quite a bit of work that could be very costly for my client. Seller disclosures note some defects as well. What do we do?

Well, buyer still has every right to cancel at this point. Regardless of indicating they wouldn't be asking for repairs or credits.

Does the buyer have the right to ask for repairs if they've already said they wouldn't? A bit of a gray area honestly.

Everything in Real Estate is negotiable. Price, terms, commissions. Everything. Frequently up to the very end. Well, not so much anymore because of the new TRID lending disclosure nightmare.

But, negotiations can continue to happen. If the appraisal doesn't come in, renegotiate the price. If the seller discloses something after the contract is written, renegotiate the offer.

AND, if inspections present some large repair issues.....write a Request for Repairs No. TWO for sure!

Today I'm waiting on appraisal report, termite report,
 and physical property inspection report.

Then, Request for Repairs No. TWO will be written!

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