What should I do with my home inspection
report?
First of all, don't panic if the
report comes back with items that need to be repaired. Few, if
any homes are problem free, so you should expect your report to
list some items in need of repair. The list sometimes gets to be
quite extensive when you are dealing with an older home. Even
with an extensive report, many of the items noted can be
relatively minor. You
also need to be aware of the following information that is
germane to Home Inspections and is part of the NC Association of
Realtors standard contract.
Under Alternate 1 of the
Standard Form
2-T, revised 7-2-2007, the North Carolina Association of
Realtors real estate contract, you will find the following
information!
"Unless
otherwise stated, it is a condition of the contract that
all permanent improvements except:"
This sentence gives
the buyer or the seller the option to exclude one of the systems
listed below.
"At closing
the following will be performing the function for which they
were intended and shall not be of need of immediate repair:"
-
built-in appliances
-
electrical system
-
plumbing System
-
heating and cooling system
-
roof coverings and flashing
-
doors and windows
-
exterior building surfaces
-
structural components
-
water and sewer systems
-
porches and decks
-
fireplaces
-
crawl space and attic
ventilation systems
-
there shall be no unusual
drainage systems or excess moisture
-
there shall be no friable
asbestos or existing environmental conditions
Note, as a buyer, if your
inspector discovers a problem with one of the above-mentioned
systems, you have the right to ask for the items to be repaired.
The seller then has 2 choices.
1. He/she can make the requested
repairs.
2. He/she can refuse to make the
repairs and will be obligated to return your earnest money if
you decide not to purchase the property.
Now, pay attention carefully to
this part.
The owner of the property is under no obligation
to make any repairs. If they choose not to make
repairs that are covered under Alternate 1 of the Standard Form
2-T, revised 7-2-2007, then they are obligated to return your
earnest money. However, if your inspection identifies items not
covered under Alternate 1 of the Standard Form 2-T, revised
7-2-2007, and you request they make the repairs, the sellers are not
only not obligated to make the repairs.
The bottom line is the scope
of the home inspection may exceed the scope of the items covered
in the contract. So, just because there is a deficiency noted on
the inspection, the buyer 's rights to repairs are limited to
those items specifically addressed in the contract.
Example 1: The home inspection
notes that the bathroom wallpaper is pealing and the kitchen
cabinets exhibit wear and tear and need to be refinished. The
seller would have no contractual obligation to replace the
wallpaper or refinish the cabinets. Neither of those are listed
on offer to purchase and contract as required to be "functioning
and not in need of immediate repair"
Example 2: Your home inspection
report says the roof and the air conditioner are 15 years old
and are near the end of their life expectancy. If at the time of
inspection, they are
performing the function for which they were intended and not in of need of
immediate repair,
the owner has no obligation to replace the roof or air
conditioner.
**Of course, everything is
negotiable, so even if the repair item is not one of the listed
items on the contract, the buyer and seller can still agree that
the item will be repaired.
** IMPORTANT
TO NOTE. The home inspection is typically performed after a home
has been contracted for purchase and the purchase price has been
agreed upon between the buyer and seller. Frequently, if a low
purchase price has been negotiated by the buyer, the seller will
be less likely to make repairs and/or there will be an agreement
for the seller to make some, but not all repairs noted. And,
sometimes the parties will agree to a monetary compensation in
lieu of repairs. As noted before, it is all negotiable!
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