Writing an Offer - Safeguards Regarding the Property
Disclosures From the Seller
Although you have toured the
property, looked at the walls and ceiling, turned on the
faucets and played with the light switches, you have not
lived in it. The seller has years of knowledge about his
or her home and there may be some things you want to
find out about as quickly as possible. For this reason,
you will require certain disclosures as part of your
offer.
Basically, you want the seller to
disclose any adverse conditions that may have a
substantial impact on your decision to purchase the
home. This would include any problems with the house,
whether the property is in a flood zone, a noise zone,
or any other kind of hazardous area.
If you have an agent representing
you, this is almost automatic, but many states do not
require individuals selling their own home to provide
you with this information. Often they do not require
banks selling foreclosed property to provide these
disclosures, either. Obtaining these types of
disclosures should always be a part of your offer, and
time is of the essence.
Condition of the Property
The last thing you want when you
assume possession of your new home is to find it in a
total mess. Therefore, you should make it clear in your
offer that certain minimum standards are required. If
you do not, you might find out the seller or neighbors
have begun using the back yard as a trash dump, or
something worse – and you would not be able to do
anything about it.
Some of the requirements you might
want to include in your offer are that the roof does not
leak, the appliances work, the plumbing does not leak,
that there are no broken or cracked windows, the yard
has been kept up, and any debris has been cleared away.
Inspections You Should Require
Besides appraisal and the termite
inspection, you should also have a professional go
through the house and seek out potential problems. Of
course, you will have inspected the home, but you are
not used to looking at some things that a professional
will find. Even if they are not things the seller is
expected to repair, at least you will have foreknowledge
of any potential problems.
The seller will want this inspection
performed quickly, so that you can approve the results
and move forward with the purchase. Once you receive the
inspection, you will want to allow yourself sufficient
time to review and approve the report. If you do not
approve the report, you may negotiate with the sellers
on which repairs should be performed and who should pay
for those repairs. Otherwise, you can cancel the
purchase without penalty, provided you have included
timetables in your offer.
Allow a maximum of ten to fifteen
days to receive the report and five days to review it.
Final Walk-Through Inspection
Before closing, you will want to
revisit the property to ensure it is in the condition
you have required in your offer, and to inspect that any
required repairs have been performed. You should do this
no sooner than five days before you intend to close.
Make sure this right to do a final inspection is
included in your offer to purchase the home.
