You are purchasing a new home and you have everything ready to go. Yes, you still need to conduct an inspection, but that is just a formality, right? After all, you know that any property comes with certain problems and you are willing to put up with them, especially for the very good price you are paying for the property.
Inspections are Not Routine
Well, not so fast. The inspection, which many consider routine, or even akin to just a “walk through,” is a vital part of your real estate closing. This is, after all, one of the most expensive purchases you will make in a lifetime.
Generally, the buyer pays for the inspector, although like anything else, alternate terms can be negotiated by the parties. A licensed inspector should be used. Inspections are usually performed within a week to two weeks of the attorney’s review of the real estate contract. This is done purposefully, so as to allow repairs of any issues that are found with minimal impact on the anticipated closing date.
“As is” Clauses
Remember that buying a house “as is” does not mean you are not allowed an inspection. It merely means that you have a better ability to walk away from the deal in the event the inspection brings up issues with the property. Likewise, the seller usually will have the option to refuse to repair whatever is found, and terminate the contract without penalty.
Assuming there is no “as is” clause, the buyer will review the inspection report, and ask the seller to make repairs, or to make some accommodation on price to allow the buyer to make those repairs.
When Problems Arise
Remember that some problems can be easily remedied by a price accommodation. Other problems should not be negotiated this way.
For example, if a property has some structural issue that violates codes and is incurring daily fees, the time and expense to fix this problem can not be easily remedied by slashing a few dollars off the purchase price. The same goes for any survey problems, such as a structure impeding on a neighbor’s property.
If the seller does not fix something brought up by the inspector after the buyer requests it, the buyer usually has the option of walking away from the property without penalty (However, the seller often has little or no obligation to fix things that are considered aesthetic or cosmetic.).
Insects
Insect infestation is a major issue that may not be covered by the standard language in some real estate contracts. Buyers who want to make sure they have the ability to back out of a contract or force the seller to eliminate pest problems should make sure this is explicitly set forth in the inspection part of the contract.
Make sure you are protected at all stages of the closing process. Contact real estate attorney Agnes Rybar LLC, to make sure you have representation in any New Jersey real estate transaction.
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