Home Sales Contract, what wording to use to get inspection items covered? (real estate)

[redlodge]

What is the best/most specific way to word the residential sales contract so that the seller is responsible for fixing any items that come up from an inspection report?
We have seen the inspection report that the seller had done when he bought the home--there were many items on it that he didn't have fixed--maybe he isn't as picky as we are. We want to be sure that he will fix anything(major items) that come up in the inspection that we will have done.
Our agent at first checked the AS IS box on the property condition section of the contract and we said NO WAY. So in checking the box that provides seller fix specific repairs we need to word it accurately.

Also, I'm a little confused by the option period. Our agent is making me more confused. We will have an inspection done and then within X number of days, the seller will be asked to fix items from that report. We would only lose X amount of dollars if we back out during that option period. I get that but what if he doesn't do anything until say the day before the option period ends? Our agent said something about adding an addendum stating that he will fix those items before closing. But if we did that and weren't satisfied then we would lose our earnest money since it is after the option period right?!

Thanks!!

[ShaneSA]

You need specific directions and assistance on this one. Get an attorney, you need the docs reviewed anyway. Get a real estate attorney to help you to word the agreement, and use that attorney for closing and review of documents. If your comfortable with it, the title company will provide an attorney referral.

[loves2read]

you take out an option for 10 days when you submit a purchase/sale agreement--that option money is left for the seller if you decide NOT to purchase the home after the 10 days--for ANY reason, even if you just change your mind about the house period...
it is their fee for holding the home off the market for that time...they can take other offers under consideration but you have the first priority and right of first acceptance or refusal IF you can reach agreement after the inspections...

there is no way to work a purchase and sale agreement to cover any/all repairs that need to be done after an inspection...I don't think any seller would sign a contract like that since basically he/she is agreeing to sell the home for some unknown price which might not cover the mortgage and other costs...frankly the seller might not be able to pay for any/all repairs that a house needs done...

there are some things/problems that you might know up front--first of all the house might be sold "as is" --meaning there is no re-negotiation on price after inspections--there may not even BE inspection period offered...

We knew the house we put contract on several years ago had damage from a hail storm to the roof--they had filed/received the insurance claim but just not had the roof put on...we wanted to have some say in what type of roof was used in replacement so we asked to have the money left in escrow at closing...they were amenable to that but it was not something put into the sales contract...just discussed after they accepted...

There are some things that are mainly cosmetic or low cost and there are some issues that are decidedly significant -- like foundation or drainage or electrical/plumbing issues--
having a leaky faucet in the kitchen is one thing---needed a new electric panel put in or a crack in the pool repaired adds up $$$...

if the homeowner does not wish to renegotiate the price after the inspection list comes in, your option basically is to have another inspection (if there is disagreement as to severity of problem (foundation issues can be like that) or to walk away...and let the person keep the option money...that is why option money is usually $100 or so--so you don't have much to lose--sometimes, to sweeten the deal where there are multiple offers, if you really want the house, you can offer MORE option money--like $1000--hoping to entice the people to take your deal vs another one...but you have to be willing to walk away from that money--you don't get it back...

frankly, it is more a buyers' market--maybe the seller does not know that...
maybe the price of the home HAS been adjusted below market already--
I can't believe your real estate person does not have some input...what do the comps say?
Frankly I would check with the bar assoc or friends--I would not use an attorney the title company recommends...and did you check to see which title company offered best fees/deal before you put contract down on house?--there is competition in that area as well instead of just using the one your realtor points you toward...

[destin04]

Did you get your own inspection? If I read this thread correctly it indicates that you are relying on the inspection the seller gave you? I would not advise that. You need to call your own inspector and get your own inspection done right away. You will also need a wood destroying pest inspection if you are planning on taking out a loan. All this must be done in the "option period". A seller will not sign a contract that says he will make all repairs to the property. The inspection is part of the process. Once you have a list of things from YOUR inspector you will need to put those in order of priority of what's inportant. There will most likely be many small things that just aren't going to be important. Repairs that are simple and can be done yourself. One thing to keep in mind....if you aren't buying a brand new home....you can't expect the home to be perfect. This is where your inspector and Realtor should help you figure out what's important. There are things on an inspection report that are "dealbreakers". I would list those as things that would be major expenses...such as foundation problems, roof replacement...however, all of those should have been in your "disclosures" which should have been given to you within 48 hours of signing the contract. Good Luck!

[FalconheadWest]

Originally Posted by redlodge

Our agent at first checked the AS IS box on the property condition section of the contract and we said NO WAY. So in checking the box that provides seller fix specific repairs we need to word it accurately.

You're misunderstanding this section. As previously stated by others, no seller is going to agree to fix "all" repairs found on an inspection. It's unrealistic, and will be perceived by the seller as ambiguous if he decides not to fix a wobbly fan because that has nothing to do with the house. Plus, even if you check the second box and write in specific repairs to be done, you can still ask for more repairs after your inspection, during your option period, as long as they are "functionality of the home" repairs. If they don't have anything to do with the actual functionality of the home like roof, ac, heating, leak, foundation, etc... I don't "allow" my sellers to consider accepting those repairs, and I highly stress to my buyers that they aren't buying a brand new home and they need to be prepared to do minor repairs to make the house their home.

With that, if you check the first box that says "as is", you still have the opportunity to ask for major repairs or you can back out during your option period, but I wouldn't ever let my buyers go off an inspection done years ago.

[redlodge]

I didn't mean that we want them to fix "all" items from an inspection report. We have the inspection report that the seller had done when they bought the house which has a couple of significant items. We will have our own inspection plus WDI done, then ask for the items that are significant from that to be repaired. I just wanted to make sure we were wording the contract correctly.
We did see a real estate attorney(who was like 80 yrs old), and he wasn't a whole lot of help. It was like we were speaking a different language--he kept saying "I don't know what you're asking for".
Anyway, thanks all for your input.