There are moments in the process of helping buyers purchase Phoenix bank owned homes that I pity those trying to do this themselves. It’s difficult enough to do when you know the nuances of the contract and spend your time trying to explain them; I can’t even imagine what it’s like when you don’t know what you need to know because the other side either doesn’t know or doesn’t care.
Today’s example deals with what happens when a home being purchased “as is” isn’t in the same condition at the time of closing (or at the final walkthrough) that it was in when the home first went into escrow. Such as when the once intact arcadia door now is missing a panel that’s been broken by a rock.
The knee jerk reaction from the listing agent was that the bank’s not going to make any repairs. Except it’s not repairs that are being requested – all the buyers want is for the home to be the home they purchased.
It’s not an unreasonable request. And it’s even covered in the contract (and mercifully not overriden by this lender’s addendum):
5a. Seller Warranties: Seller warrants and shall maintain and repair the Preimses so that, at the earlier of possession or COE: … (iii) the Premises, including all additional existing personal property included in the sale, will be in substantially the same condition as on the date of Contract acceptance;
Quick aside – here’s the fun part. Many listing agents add notations to the listing that this paragraph needs to be waived on Page 7 of the contract in the free-form section. My guess is many agents have done so without thinking about the consequences. Hopefully nothing happened to the home.
Lenders usually include a per diem charge if the escrow doesn’t close on time. There’s a way around this in a situation where the home’s condition has changed which I could share here … then again, maybe I’ll have you contact me rather than explain it to the agents who read this site who currently are scratching their heads.
[tags]Phoenix real estate[/tags]