I recently got a newsletter from a mortgage broker at Princeton Capitol, confirming what I have been telling clients for the last 16 years. If you are purchasing a home, or accepting an offer to purchase a home and the contract is "As-Is" do not discuss the specific inspection reports in the contract. The reason for this is that if there is mention of a termite report, property report, etc. Fannie and Freddie are getting very picky about wanting to see those reports, and in the case of termite, they will want to see a clearance. If you do not mention the report they will not need a termite clearance. This does not mean that the buyer does not have the right to any inspections, they are just not specified on the contract.
I know this is not logical. If a contract is "As-Is" then it means the seller is not going to make repairs, but the goal is to come to a mutual agreement and proceed with the sale. Checking the box buyer will pay for a termite inspection can derail the sale, so just do not check the box, and the buyer can inspect to his or her's heart's content.
This is particularly important in Short Sales and Trust and Probate Sales where the seller under no circumstances can make any repairs before close of escrow. It would be a shame to derail one of these deals over an issue that the buyer and seller agree on, but the lender for the buyer has a different policy.
If you have any questions about anything having to do with real estate in Santa Clara or San Mateo County, please feel free to ask.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales
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