Negotiating Repairs in Real Estate Contract

[novon]

Hi

So I'm in the process of buying a house, I did a full inspection, and created a list of items that need repair.

I'm still within my Inspection Contingency period. For those who know - do I need to create a seperate contract that outlines repairs, or does my response to the Inspection Contingency cover me if the seller doesn't do the repairs he agrees to as expected?

Does anyone have a sample contract for this situation? We are using one real estate agent, so I have to assume she's working for the seller.


Also - how important is it to do a property survery, oil tank decomission inspection, and easement check? Is the easement covered by title insurance?

Thanks!

-novon

 

[tw1164]

Get your own agent

 

[Aimster]

I like your website. you are very talented.

& yes as the guy above me said, you should def. get your own agent.

 

[Cal166]

Beautiful pictures.

 

[wyvrn]

Get your own agent, and pick a title company. Sometimes the lender has a preferred title company, but I belive you have the right to use your own.

The title company will order the survey, check the legitimacy of the title, and check for things like easements (maybe that's a part of the survey).

I don't use RE agents very often because I have done this so many times and I have a standard contract that I use. But in your case I would strongly recommend it.

In all transactions I have hired an inspector and title company right off the bat. They are expensive, but nothing like you would pay if you found something later on. Try to get the pickies inspector you can. I had a guy spend over 4 hours at a propery once and he found just about everything wrong with it, but there were some repairs afterwards even he could not have found in 4 hours.

The inspection report will help you negotiate repairs. My rule is anything affecting structure, equipment (installed appliances, water heater, ac unit, etc..), or anything environmentally hazardous are the responsibility of the seller. If they don't repair it, then I drop my offer by an appropirate amount.

 

[z42]

If you are already under contract (which it reads like you are) you probably can't get your own agent without paying him yourself. It is always a good idea to have your own agent in a RE transaction though.

There are normally 2 different kinds of repairs that need to be made when a home inspection is done. Did you hire a licensed inspector or just look over the house yourself? It isn't clear from the OP. A licensed home inspector should separate the repair items into two categories; structural repairs and cosmetic repairs. Most purchase contracts state that the seller will rectify any structural damage, or that the house is being sold in "as is" condition.

In answer to your question, a separate contract is not usually necessary for the repairs to be made. If the seller doesn't do the repairs that the original contract calls for, they are in breach.

Technically, if you are only using the one agent for the transaction she is operating under a "Dual Agency" and is representing you AND the seller. You should be able to contact her for any advice on the transaction. Most agents are held to a high ethical standard to be licensed and some associations like the NAR are watchdogs.

The Title report should cover all easements, and leins, but I don't believe it contains inspection results.

 

[courtjester123]

The whole thing is basically what you called it, a "negotiation." With my last buying experience, my agent left the process up to my lawyer. He took the inspection report and from there it became a series of faxes between us and the seller's lawyer. We said "fix this or give us x-number of dollars" for each item in the list. They came back with "we'll fix this, we'll give you x-number of dollars instead of fixing this, and we won't fix this or that."

So ultimately it distills down to a list of things that we agreed upon. The bottom line is money...the seller will bend a certain amount and you will have to bend a certain amount. They use their power of potentially backing-out of the deal and you use your power to do the same thing. It's all about who is willing to make the most sacrifice in order to not break the deal.

For the other major things, the other responses in this thread seem sufficient. Good luck.

 

[woowoo]

Originally posted by: tw1164
Get your own agent

Close.....


Get your own lawyer.

 

[novon]

I got the inspection, the seller is very tightlipped, I have to squeeze info out which is not a good sign. But the inspection showed only minor items that I have in a list. So If I use the standard Inspection Contingency Response form, then I can't really back out of the deal if they accept to do all the repairs but don't. It would just be a breach, which would mean lawyers, correct?