TUESDAY TAKEAWAY: Repair Request Verbiage
Repair Request Verbiage
Q: A Buyer would like to have the seller fix certain items that came up on the inspection report before closing. This transaction is on an As-Is Contract. What verbiage would you suggest to use on this transaction and on other transactions where buyers are requesting sellers to fix certain items per the inspection report? The As-Is Contract technically does not allow the buyer to renegotiate, but most agents will negotiate repairs after the inspections completed.
Some sort of general verbiage to use moving forward for similar repair request situations would be helpful.
A: You want to make sure the inspections are completed within a certain time period and the Buyer has the ability to reinspect after the repairs are made. Also, the Seller should be responsible for any larger problems that may be discovered in the repairs. The As-Is does not require licensed professionals to make repairs, so you want to make sure the Seller uses all licensed individuals. An example of this language is below.
Seller shall make the following repairs prior to closing:
All repairs shall be properly permitted and done by licensed individuals when required.
Seller is responsible for obtaining approval and complying with association rules.
Seller shall allow buyer to reinspect such repairs and Closing shall be conditioned upon Buyer’s approval of all Repairs.
Buyer shall not be obligated to close if Seller’s repairs expose any other issues that were not discovered by Buyer during the inspection period.