Posts Tagged ‘contract’Posted on: May 28th, 2012 No Comments
It’s important for both buyers and sellers to understand what is contained in a real estate contract, especially when it comes to anything that may cost either party money. Buyers have the right to inspect homes they put under contract. What is open to negotiation is whether the seller or buyer will be left to fix issues that turn up in those inspections. To better understand who is responsible for repairs in a real estate transaction, you need to know the difference between a warranted and “as-is” contract.
A warranted contract is one where the seller is responsible for having certain items in proper working condition at closing. When using the Tallahassee Board of Realtors Contract for Sale and Purchase, warranted items include heating, cooling, electrical, plumbing, appliances, well, septic tank, sprinkler systems, security system, pool and spa. It should be noted that with a warranted contract, the seller is OBLIGATED to have each of the items previously listed in proper working condition, or the manner in which the system was designed to operate (the system need not meet current building regulations nor do aesthetic imperfections need to be addressed).
As the name implies, an “as-is” offer is one in which the buyer is willing to accept the property in its present condition. That doesn’t mean, however, that the buyer can’t or shouldn’t have inspections done. If inspections are not satisfactory to the buyer, they can terminate the contract. It is not customary to enter into an “as-is” contract and, upon finding issues during inspections, to try to renegotiate the terms of the contract with the seller. The seller is NOT OBLIGATED to fix issues that turn up in an “as-is” contract.