What If Repairs Are Not Done Before Closing
The Seller Didn't Complete the Repairs. Now What Happens?!
With almost v years of experience in the existent estate industry, this is my start domicile where the seller did non complete repairs according to the repair agreement. In this item state of affairs, we returned to do the re-inspection and constitute the following: repairs not complete, repairs not up to code, and repairs addressed differently than outlined on our signed repair agreement. All items were not completed according to the contract signed by both the seller and buyer. This is a rare situation, merely information technology does happen occasionally. Your agent can practice a few things to address this situation:
- Have a well-written contract (and specifically a well-written repair understanding). All linguistic communication and requests should be specific – not ambiguous. For example, at this property, there was a leaky faucet. In the repair agreement, you could list "repair leaking bathtub faucet". If, nevertheless, the faucet cannot be repaired, the seller may not be responsible for replacing information technology and so the heir-apparent may be hit with an extra expense. I recommend always writing "repair or supercede leaking bathtub faucet". This holds the seller responsible for fixing the issue completely. At this property, we also had a water barrier result with the siding. The inspector specifically recommended z-flashing. In the repair agreement, I specifically wrote "install z-flashing" rather than a more than cryptic "resolve water barrier issue on siding". The seller's contractor simply caulked the area instead of doing the z-flashing. Since it was written in the signed repair understanding, we were able to hold the seller to the specific z-flashing repair. A roofer had to return to the property to consummate the repair according to our signed repair agreement. It is very of import to be specific in the contract. If you accept problems, it is of import you hold the seller to what he or she agreed to in the signed repair agreement.
- Write linguistic communication into the contract where seller pays for re-inspection fee if repairs are not completed correctly the first time.With our company, we have a standard addendum that includes this wording. It states: if an inspector has to return for a re-inspect considering the seller did not repair or replace the damage every bit per the understanding, the seller will be responsible for the re-inspection fee. Having this addendum in the original contract incentivizes the seller to go the repairs right the first fourth dimension. It also penalizes the seller if he or she does not complete the repairs before the showtime re-inspection. With this property, the re-inspection fee was $150. Of form, my heir-apparent did not desire to pay the fee. At closing, the fee was deducted from the seller'due south gain and paid to the inspector. This clause is non in the normal contract. It will need to be added by the buyer'due south agent.
- Before initial re-inspection, get all receipts for completed repairs.According to the NEFAR* contract, the seller is required to provide a copy of receipts for all work to the buyer. Once the heir-apparent moves in, the heir-apparent will be able to contact the vendor listed on the receipt if the repair has an issue later down the line. Additionally the receipts show that a licensed professional completed the repair. The NEFAR* contract requires licensed professionals to do all repairs. A handyman may be cheaper but he is non a licensed contractor, roofer, or plumber. When you receive the receipts, you tin can check that all the repairs listed match the repair agreement. Adjacent you tin can cheque the completed repairs were finished past a licensed contractor. Once this is verified, you tin can schedule the re-inspection.
- After the initial re-inspection, require pictures of the newly completed work before scheduling some other re-inspection. Pictures help you lot verify the work is complete and that the work is completed correctly. Information technology provides an actress level of protection peculiarly since the seller didn't have repairs complete the first time. It ensures that the buyer's agent, the inspector, and the heir-apparent are not wasting their time on nonetheless another inspection.
- DO Non Close if repairs are not done – even if the seller says he or she will practise it afterward closing. I do not allow my buyers to practise this just I take friends who have airtight without everything beingness consummate. They securely regretted information technology after! Once the seller has his money, there is no motivation to follow through every bit promised. You need to brand sure everything is completed as per the contract before signing the last paperwork. With this belongings, the seller did non maintain the property equally per the contract. We required the lawn exist mowed prior to closing or we would not be signing the paperwork. Additionally, we had issues with the seller paying the $150 re-inspection fee as per the contract. Nosotros stated we would not close unless he paid it. Both of these items – the lawn ($xl) and the re-inspection fee ($150) – are minimal expenses compared to the $140,000 the heir-apparent is paying for the property. By not endmost until the seller addresses the issues, you are preventing him from receiving his $140,000. A seller would be very silly to non close over these minimal expenses, especially if the buyer has loan approval. The buyer needs to maintain that leverage until all of the contract is met. Past endmost without everything beingness completed, you are taking away all of your leverage and you should not expect to run into whatsoever results from the seller later on closing. Exercise not close until the repairs are complete, receipts received, and all repairs inspected.
*NEFAR=North East Florida Clan of Realtors
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Source: https://www.agentmillennial.com/the-seller-didnt-complete-the-repairs-now-what-happens/
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