Example: Repair Procedure with 10 business days filled on SCR310 in for buyer inspection date. (Inspection period can be more or less than 10 business days depending on what the buyers and sellers agree upon in SCR310).
While some buyers might only order a home inspection to save inspection money, there is a long list of inspections that all buyer reps may recommend and let the buyer decide which they want to order/pay for in the transaction.
So the buyer might do all sorts of inspections during the 10 business days in this example. Simply completing the home inspection on day 4 still leaves 6 days of inspections in this example.
So in this example, the deadlines:
10 business days +2 business days for buyer to give to seller a complete offer of repair requests that fit into the 9 basic repair categories (e.g. a fully completed SCR525 repair request addendum).
Then seller has ____ business days (filled in on SCR310 and varies with market conditions, the hot market may require more time to schedule contractors for repair estimates) to get contractors to give the seller repair estimates so the seller can decide about agreeing to make the repairs on the SCR525.
If the seller agrees to make all the requested repairs that fit into the 9 basic categories, then the parties are in contract and going to closing.
Only if the seller refuses to make one or more of the 9 basic categories requested does the buyer then have only 2 business days to decide to:
1. timely/properly terminate
2. buy without those repairs (e.g. buyer’s dreamhouse, such a good deal without repairs)
3. offer to pay more if the seller will make the repairs (e.g. finance the repairs)
If the seller and or the buyer do not take action through these deadlines, then the contract becomes an AS IS contract heading to closing.
9 basic repairs (only repairs that buyer should ask for and only repairs that sellers need to agree to make to keep the buyer in contract for repair procedure):
"seller paid repairs" = place these systems in operative condition: (1) heating (2) air conditioning (3) electrical (4) plumbing (5) water supply (6) waste water and (7) make the roof free of leaks and (8) address environmental concerns and (9) make the improvements structurally sound*
* any disagreements between buyers and sellers about what is "operative condition" or "improvements structurally sound" or "address environmental concerns" will be solved by (1) buyer/seller self-settlement or (2) buyer/seller hire mediator to help them self-settle or (3) hire lawyers and get a judge to make a ruling.
A big advantage of due diligence is you avoid all these repair procedure issues. SCR recommends using SCR311 due diligence to avoid all these repair procedure issues.
Here is a long list that is continually added to as SCR learns of new inspections:
Buyer agent may recommend that buyer hire inspectors for:
home inspection
roof inspection
structural engineer
HVAC inspection
water inspection
waste water inspection
appraiser
surveyor
electrician inspection
plumbing inspection
lawyer
mortgage lender
septic inspection
air quality inspection
pest inspection
tree inspection
hazardous materials inspection
mold inspection
landscape inspection
drainage inspection
access inspection
law enforcement – crime statistics
meth lab website
sex offender website
government demographic statistic website
insurance double check
flood insurance double check
private investigator for offsite conditions and information check
online search
paranormal investigation
out buildings inspection
dam inspection
fence inspection
tree inspection
bridge inspection
mold inspection
etc.
well
pool
spa
nfip flood insurance elevation certificate
radon
well/water
wood infestation
accountant tax cpa
lawyer
home inspections
home warranty
mortgage
insurance
survey
cl100
public private road access
Posted by : Byron King on 6/20/18 (This information is only accurate as of 6/20/18. You must contact SCR for updates and changes to this information after 6/20/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)