Examining the contract
California Residential Purchase Agreement
PAGE 4 paragraphs 9 & 10
These paragraphs give the buyer the right to "investigate" the property and if they don’t like what they find can back out of the deal.
I call it the BUYERS Due Diligence Period
As the buyer, you are entitled to know everything about the property you are buying. This time period is sometimes called the Investigation Period. Unless otherwise noted in the contract the buyer has 17 days to remove investigation contingency, which allows the buyer and their home inspector(s) the opportunity to carefully look over the home for any potential structural or mechanical defects. My recommended inspections includes septic, home, termites, roof damage and checking for building code violations and a review of all that is in the Assessors records.
Before that 17 day period has expired, if the buyer does not like the results they generally can exercise their right not to move forward with the purchase of the property
If you are borrowing money, the lender will have their own requirement--starting with an appraisal. They will not loan money for a property that isn't worth the price.
All real estate transactions are “AS-IS”= The property is sold without warranties. This is consistent with common law inwhich no warranties are automatically included in a sale. However, the property is tobe transferred in substantially the same condition as on the date of acceptance of theoffer. Thus, the seller cannot neglect the property during escrow.
The seller remains obligated to disclose known adverse material facts. An important event is whether any insurance claims affecting the property have been filed within the past five years since homeowner insurance companies have the ability to check an industry database. Depending on the nature and types of such claims, the property may be uninsurable or insurance may be hard to get or expensive. The buyer also retains the right to inspect the property and, based upon those inspections, request that the seller makes repairs. If the seller is unwilling or unable, the buyer may cancel the contract.
The broker remains obligated to complete a reasonably competent and diligent visual inspection.
The seller is entitled to a copy of all reports, at no cost. The seller shall have utilities on for buyer's inspection.
Happy Trails to you . . . until we meet again, ♫
Patti Lyles - the REAL Performer
Century 21 Showcase, REALTORS ®
831-335-2100
Patti@PattiLyles.com
http://www.SantaCruzCountyShortSales.com
The Louisiana Residential Agreement To Buy Or Sell (aka Purchase Agreement), offers a similar clause on page 3, Lines 126 through 159 that is termed, "INSPECTION AND DUE DILLIGENCE" that permit the Buyer to have "experts or others of his [her] choosing" to inspect the property. However the amount of time for such purpose MUST be written in (and ultimately accepted by the Seller) on line 133. There is additional language on lines 144 through 147 that offer options and remedies to the Buyer for termination of the contract or request for Seller repairs.