When you’re buying a home, especially a preowned home, there’s bound to be some issues which come up on the inspection report. Some are minor, some are major, but an amendment is filed by the buyer to request the seller(s) fix some things from the report. They can also request compensation in lieu of repairs, or a reduction in sales price. The important part to know is Paragraph 7, Part F of the One-Four Contracts.
It reads in full:
So what does that mean in non-lawyer terms? It means several things, and i’ll itemize them below.
– Unless the amendment filed gives the sellers the ability to make repairs themselves, the repairs must be completed by a person who works in such a trade and is licensed by the State of Texas to engage in such practices. Same with any kind of treatments.
– The sellers must make any warranties which are transferrable to the buyers (think of foundation, appliances, etc.) before closing, but the buyers are responsible for any transfer costs
– Failure for the sellers to complete agreed upon repairs or treatments can result in them being in default of the contract, at which time the buyers may either extend the closing date up to 5 days, terminate the contract and be awarded their earnest money back, or seek a form of relief allowed by law.
I have had clients file lawsuits for sellers doing repairs themselves, or faking receipts for repairs and committing fraud. It’s real, it’s dangerous, and it can be very costly for the losing party involved. The easiest thing is to get a few bids from licensed vendors, and make a decision from there. But you should always know, as a seller, going into agreeing to repairs how much it will be and what the consequences are for not doing what was agreed to.
So if you’re in the market to buy a home, Contact Me Today! I can help you get set up with mortgage and insurance people to make sure you’re able to buy a home and have the best coverage.
You can also get a copy of my Home Buyers Handbook when buying to learn about the process!