Make sure you include an inspection addendum when buying a home "as is". Including an addendum or clause to the contract that allows you the right to inspect a home and cancel the contract during the inspection period is strongly recommended. Having the right to inspect the home and cancel protects you from hidden or unknown defects.
FAR/BAR As Is Contract
When buying a home “as is” you might want to consider using the FAR/BAR As Is contract. The FAR/BAR As Is contract allows the buyer to cancel their contract with the seller if after the inspection the buyer deems the property unacceptable.
FAR as in addendum
Another choice available to you is the FAR As Is With Right to Inspect addendum that you can attach to the contract. The as is addendum gives the buyer the right to inspect the home and to cancel the contract if the cost of repairs exceeds an amount decided on in negotiations or if left blank on the addendum the contract allows for cancellation if the amount exceeds $250.00.
Make sure you protect yourself when buying a home as is. You should be careful about giving up your right to inspect the home you are purchasing and you should negotiate with the seller the ability to cancel the contract if your inspections reveal major issues.
Related Florida real estate blog posts on home inspections
Showing posts with label as is with right to inspect. Show all posts
Showing posts with label as is with right to inspect. Show all posts
Aug 2, 2008
Should you buy a home in "as is" condition?
Even with it being a buyer's market I see an increasing number of buyers agreeing to purchase a home in "as is" condition. The term "as is" would basically mean that the seller is making no warranties other than clear title and the seller does not intend to make any repairs.
The increase in as is offers could be a result of the increase of bank owned and short sale contingency homes that are now making up a large part of the Central Florida home inventory. Bank addendum often require buyers to sign as is clauses and sellers who are contingent upon a short sale, will need to sell as is simply because of having no money for repairs.
Buyers can still protect themselves when buying a home as is by making sure they make their contract "as is with right to inspect".
An as is with right to inspect addendum will allow the buyer a legal way to cancel the contract should an inspection reveal conditions or repairs the buyer is unwilling to accept. the buyer will need to notify the seller in writing of the conditions or repairs that the inspection report revealed that are not acceptable to the buyer and are the reason for the cancellation.
Buyers can choose to accept the property in the condition reported and move forward with the sale or in some cases the seller may decide that it is in their best interest to make the repairs for the buyer in order to successfully close the transaction.
When buying a home as is you should talk to your Realtor about making sure your interests are protected and if need be, you should seek the advice of an attorney prior to executing a contract.
Related Florida real estate views:
What are the repair obligations to the home seller when using the FAR contract?
Home inspectors recommend caution when buying foreclosed homes
Don’t buy a home without a home inspection
- Greg Staker - Watson Realty Corp. - 407-304-0255
The increase in as is offers could be a result of the increase of bank owned and short sale contingency homes that are now making up a large part of the Central Florida home inventory. Bank addendum often require buyers to sign as is clauses and sellers who are contingent upon a short sale, will need to sell as is simply because of having no money for repairs.
Buyers can still protect themselves when buying a home as is by making sure they make their contract "as is with right to inspect".
An as is with right to inspect addendum will allow the buyer a legal way to cancel the contract should an inspection reveal conditions or repairs the buyer is unwilling to accept. the buyer will need to notify the seller in writing of the conditions or repairs that the inspection report revealed that are not acceptable to the buyer and are the reason for the cancellation.
Buyers can choose to accept the property in the condition reported and move forward with the sale or in some cases the seller may decide that it is in their best interest to make the repairs for the buyer in order to successfully close the transaction.
When buying a home as is you should talk to your Realtor about making sure your interests are protected and if need be, you should seek the advice of an attorney prior to executing a contract.
Related Florida real estate views:
What are the repair obligations to the home seller when using the FAR contract?
Home inspectors recommend caution when buying foreclosed homes
Don’t buy a home without a home inspection
- Greg Staker - Watson Realty Corp. - 407-304-0255
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