So, you finally found a property that makes your heart skip a beat and you are already imagining family dinners and movie nights by the fireplace. Congratulations! However, do not move too quickly and leave yourself in a vulnerable position when it comes to your due diligence on the home. Home inspections are a vital part of the deal and may save you some future heartache, you have a “Right to Inspection”. Love may be blind when you find that property you have been waiting for, but your inspection period is not and has perfect 20/20 vision.
A standard purchase and sale agreement should include a clearly defined inspection period and accompanying cancellation clause should anything be found that is not resolvable. Oftentimes, when an issue arises post-inspection, the buyer and seller can work together on an agreement and still proceed with the sale. If this is not the case in your situation, and you don’t want to take on the repairs necessary out of pocket, then the cancellation clause is your best friend as long as you are still within the time period. It is the buyer’s sole discretion to cancel within this timeframe for any reason, it is your “Right to Cancel”.
For example, when Mary was searching for her very first home with her husband, she landed on a lakefront beauty double the size of their apartment with all the trimmings inside. The first red flag should’ve been the fact that it was within their price range, but hindsight is 20/20 as well. The sale process was moving along quickly and smoothly, and they were already starting to pick out furniture for their new place, but then the inspection happened. Polybutylene piping, ancient electrical panel, aluminum wiring that could catch the place on fire, and oh yeah both toilets leaked. After the initial shock faded that this pristine gorgeous condo was essentially a money pit (approx. $12,000 in repairs just to be able to live in it), Mary asked the seller if he would repair it enough to be safe (she couldn’t even get homeowner’s insurance in the current condition). He refused, quite adamantly actually, so they bailed. Thank heavens they did because they found their actual dream home a week later. Lesson to be learned, inspection periods and cancellation clauses allow you the freedom to make an informed choice and potentially save you thousands.
Contact Gulati Law to help guide you through your inspection period and to help assist in renewing your survey, title, HOA, condo docs, and so much more.