Time Period: The contract will provide for a
period during which the buyer may inspect the property. When
the time period is up, the buyer is barred from raising any
repair issues. If the buyer has not satisfied himself as to
the condition of the premises by the expiration of the repair
period, modify the contract to extend the inspection period,
or consider using your right under the inspection provision
to rescind the contract and start over.
Deductions: the default provisions of most "standard"
contracts provide for a deduction for repairs identified as
needed, of 2 or 3 % of the purchase price. This means the
buyer can reduce the purchase price by up to 3% for all of
the defects he can identify, but may not rescind the contract
unless repairs exceed this allowance. Even new construction
will have some of these, and older homes many. Consequently
many sellers consider contracting for a "zero" repair
deduction. This means that the buyer may rescind the contract
after the inspection, but if he does not, there will be reduction
in purchase price. With a zero repair allowance though, the
seller is still warranting the house to be in habitable condition,
where as in an "AS-IS" contract there is no repair
deduction, and the seller is NOT warranting the condition
of the property. Note that selling "as-is" does
not permit the seller to intentionally conceal a defect from
Closing Date: the date on which the buyer must perform by
purchasing the property. Note that if the contract does not
say "time is of the essence" the buyer has not lost
his deposit by failure to close by the closing date. The seller
must then "demand performance."
Closing Place: Should be at the office of the
entity insuring title in case any last minute changes need
to be made at the closing table. [..cont..]
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