Perhaps a way for a listing agent to discuss CL100 repairs requested on a buyer-submitted SCR525 for section #11 Wood Infestation Report of SCR310:
(1) The seller is gathering information on the requested repairs to determine cost estimates or if the requested repairs fit into the SCR310 #11 CL100 repair requirements.
or
(2) The seller agrees to the attached SCR525 sent by you and your buyer.
or
(3) The seller counter offers a SCR525 omitting repairs that the seller’s legal counsel has opined do not fit into the SCR310 #11 CL100 repair requirements and agreeing to make the repairs that the seller’s legal counsel has opined do fit into the SCR310 #11 CL100 repair requirements.
or
(4) The seller does not agree to make any repairs for the CL100. [The buyer might terminate because of this statement if the requested repairs fit into Section #11.] However, we are offering $1,000 seller-paid buyer’s transaction costs in lieu of repairs if your buyer will agree to the change of seller-paid buyer’s transaction costs and properly strike section #11 from the SCR310 contract.
*Seller side avoids discussing money in lieu of CL100 repairs except as used in #4 stated above.
FYI – The SCR310 section #11 is much like the old SCR310 "repair procedure" where the parties/lawyers often argued if a requested repair fit into the contract list of repairs or not. While SCR310 due diligence ended this argument created by the old repair procedure section that it replaced, the CL100 section is in effect a "miniature CL100 repair procedure" with all the pro’s and con’s of the old repair procedure. Parties/lawyers can argue if a repair fits into the CL100 section or not. Some CL100 inspectors may put all sorts of repair recommendations that do or do not fit into the CL100 section. This #11 section is lawyer-intensive if disputes need to be resolved.
One idea to avoid the CL100 section is to have a longer due diligence period without the CL100 section. The buyer and seller handle CL100 issues during that longer due diligence period That way the seller gets the termination fee. But, that also wides the time that a buyer can terminate. The longer due diligence period in the SCR310 would need to get the CL100 within 30 days of closing (see below).
Clemson Extension Service which regulates CL100 issues requires the CL100 to be within 30 days of closing or the CL100 goes "stale" and termite issues are a risk. Clemson has stated that termites can cause damage in shorter time frames than 30 days (e.g., 14 days).
Posted by: Byron King on 10/12/23 (This information is only accurate as of 10/12/23. You must contact SCR for updates and changes to this information after 10/12/23 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.