Home Purchase – Seller Disclosures And Inspections
Very Important
Our Offer Was Accepted – What Now?
(This information is written for Colorado consumers. It may or may not be applicable in other states.)
Great! You are “under contract” with a number of contingencies in the agreement that are there to protect you. One of the most important is the inspection contingency. It is time to exercise your due-diligence. You either have or will shortly receive the “Seller’s Property Disclosure”. This is the multi-page document in which the seller identifies the condition of various components of the property. When you sign it, you are acknowledging receipt of the document but NOT accepting any of the conditions contained therein.
Do Sellers Always Tell The Truth?
Absolutely…….Not! There are penalties for lying on this form. The problem is that enforcement is difficult and even more-so if the seller relocates out of state. It is really your responsibility to carefully inspect your prospective home.
Trust But Verify
One of our recent U.S. Presidents believed in the above phrase and it worked pretty well for the United States. You as a buyer will want to check and confirm EVERYTHING. You should expect a lot of assistance from your buyer’s agent. If you do not have a written agreement with the person assisting you then that person is NOT your agent and you are on your own. Some “non-agent” brokers may steer you to an inspector known to be less than thorough.
Home Inspection Tips
Start with hiring a really great inspector. If you have a licensee who is really on your side and you have investigated their credentials then your agent will be a good source. If not, check with friends who have recently purchased. Ask the inspector for references and a resume’. It is far too easy to attend a several day “inspector” seminar and leave with a “designation”. My favorite inspectors are those who have real experience in the construction industry. You will want the traditional “house” inspection and, depending on conditions, a test for the presence of radon gas and a “scope” of the sewer line. I like the sewer scope in all cases and we have found problems even in new homes. It is a “must do” with older homes. Some situations suggest a professional inspection of the furnace or boiler. Other inspections are available depending on the situation.
Should we be present for the inspection?
Absolutely! I had one experience where a client engaged an inspector not known to me who refused to allow us to accompany him. That was the only time. Most inspectors want you to be there to take notes and to learn more about your home. I have been on many hundreds of inspections and almost always learn something new on each.
What happens if there is a problem?
It has always been my position that a seller has a certain responsibility to deliver a house free of defects that affect health, safety, operation of major systems and structure. I work really hard for my clients to get those corrected. By staying away from other types of items in the “Inspection Notice” have pretty good success in getting sellers to make corrections. You are well protected in Colorado because the agreement provides the buyer with the right to terminate following an inspection subject to buyer’s “subjective” opinion.
If you have really good representation, the inspection will occur in due course and you will not be “stressed”. You can certainly call on me to assist with your purchase of a home in the Denver area.
Russ Murray 303-721-1100, ext 1 russ@buyerbroker-denver.com