Back to the Seller?
Posted by admin on Sep 21, 2008When a seller finds that a qualified inspector has determined the roof needs repair or the water heater has outlived its expected life span, he may agree to make repairs or replacements or to knock down the price so that you can cover the cost of having the work done yourself.
Suppose something catastrophic is discovered? Perhaps the floors are heaving or the foundation is settling,
causing cracks in the interior walls. At this point price is no longer the object; you want out. Assuming the deal was contingent upon an inspection “…which in the sole judgment of the purchaser is deemed satisfactory,” you’re off the hook. Convey your decision to the seller in writing.
Special Situations: New Homes,
Condos and Co-ops If you’re buying a not-yet-built home in a new development, determine whether covenants that dictate the size and style of housing in the development apply only to a particular phase or to all phases of the whole project. Developers sometimes give themselves escape clauses that, for example, permit them to change to a cheaper house if the market changes. Your contract should specify that the house is to be built to the quality standards of the model you saw. If covenants permit the builder to change the mode, from one phase to another or in response to market condition, and if that’s not acceptable, your contract should stipulate what model and standards are to be used in building your home.
Insert a clause in your purchase offer giving you the right to have ongoing inspections done (at your expense) as construction proceeds, plus a final walk-through inspection.
Inspection is particularly useful as the foundation is being built and before insulation and drywall go on. At that point, heating, cooling, plumbing and electrical systems in your house are in place.
Apartment-style condominiums and co-ops also require careful going over by inspectors knowledgeable about and experienced with the special problems and considerations inherent in these types of ownership. For example, an inspector should have the skills needed to assess the condition of large-scale heating plants and plumbing, common roofs, halls, stairs, elevators and swimming pools. A typical inspection of a single apartment unit would leave you with little or no information about the condition of the building as a whole. That’s a potentially expensive shortcoming: Once you’re a co-owner, you will have to ante up your share of the cost of a new roof, electrical system or furnace.
When an apartment building is converted to condo use, the developer-seller must provide tenants (as prospective owners of units) with an engineering report on the condition of the building. In addition, a
tenants association or condo-owners association may have, at some point, commissioned its own engineering report. Your contract to buy should be contingent on getting copies of all engineering reports and an inspection that in your judgment is satisfactory (see Chapter 7 for more on home-inspection contingencies).
When going through an engineering report, note recommended or suggested major work. Then find out whether it was done or still lies ahead. If work was
FOR MORE INFORMATION
Snow White and the Seven Dwarfs rip
The Adventures Of White Tuft movies
The Complete Book of Home Inspection, by Norman Becker, P.E. ($21.45, including postage; from Home Reporter Systems; 800-328-6775; www.hreporters.com). done,
how was it paid for—out of a reserve fund or by special assessment?
If you remain concerned about the building’s condition, consider hiring the engineering or inspection
firm that did the last study for a briefer inspection. (You could hook up with other would-be buyers to
share the cost.) Commercial inspectors usually work by the hour, charging from $100 to $200 per hour. A two hour reinspection should give you the information you need. Weigh the expense against your ability to handle a large and unanticipated bill for major repairs soon