Tehama Country Real Estate

Tehama Country Real Estate ��� Who is responsible for repairs during a home sale? M any questions arise during the home- buying process. Buyers looking at homes that require a good deal of TLC may wonder who is responsible for the home's repairs, particularly if such repairs are needed to secure a certificate of occupancy. Depending on the situation, there is no clear-cut answer. Home buyers may be able to negotiate that sellers repair major structural issues, such as a leaky roof. If not, negotiate a lower sale price. The rules often change when buying a home There is no perfect home, and things that are that is a short sale or in foreclosure. A home that acceptable to the current owner may not be is in distress is typically in this situation because acceptable to the buyer who is looking to the current owners cannot afford to pay their become the next owner. The home-buying mortgage, and thusly, are not able to afford process is typically a careful cooperation repairs. According to Think Glink, a money- between buyer and seller to find a middle management Web site, buyers may try to negoti- ground. The buyer may have to make some con- ate repairs with the seller, but they shouldn't cessions, as will the seller. Ultimately, it is this assume that sellers (or lenders in the event of a cooperation that often determines if the sale bank-owned home) are responsible for the goes through or is terminated. repairs. Generally speaking, most short sales and foreclosures are sold "as is" and may even Before any negotiations can begin regarding specify that repairs and requirements for the cer- repairs, it is adviseable for a buyer to have an tificate of occupancy are the buyer's responsibil- independent inspector come out and look over ity. A buyer also can ask to have the home price the home and property. Most real estate agents reduced to cover the repairs. But foreclosures are will suggest this be done as a first priority -- often already deeply discounted. even before a contract is entered on the home. An inspection will unveil any potential prob- Buyers should know that, for a home that is lems in a home and indicate things that the not in foreclosure, there are some repairs that buyer may not be aware of, including items that should ultimately be the responsibility of the do not meet with code or could be unsafe. An seller. If these repairs are not made, a buyer inspector also may point out problems that should think strongly about walking away from could cause a mortgage lender to give pause. the deal, according to Why6Percent.com, a real This may mean the lender will deem problems estate marketing site. unsafe and refuse to fund the mortgage until repairs are made. A copy of this inspection report should be sent to the home seller to review with his or her attorney and real estate agent. The buyer working with his own real estate attorney and agent can petition for certain repairs to be made. Many sellers will make such repairs to ensure the purchase goes through, or they will accept a lower Such repairs include: * lender-required repairs that could impact home safety * leaky pipes * water penetration issues, including a bad roof * unsafe decking or handrails * wet basements or crawl spaces * insecure foundations or obvious structural damage * poorly functioning sewer lines or septic system purchase price to compensate for the needed It is always adviseable for buyers to speak repairs, which the buyer will then make. Buyers with a reliable real estate attorney and a trusted might want to hire a good real estate attorney to real estate agent to guide them through the write clauses into the contract to protect their process of buying a home. These people can help interests. This allows the buyer to forfeit the sale buyers navigate the important decisions that can and walk away from the contract should an affect the home they'll be living in for the next issue arise. several years. 3

• Cover