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Writing a REPC (Real Estate Purchase
Contract)
Disclosures
Although you
have toured the property, looked at the walls and ceiling,
turned on the faucets and played with the light switches, you
have not lived in it. The seller has years of knowledge about
his or her home and there may be some things you want to find
out about as quickly as possible. For this reason, you will
require certain disclosures as part of your offer.
Basically, you
want the seller to disclose any adverse conditions that may have
a substantial impact on your decision to purchase the home. This
would include any problems with the house, whether the property
is in a flood zone, a noise zone, or any other kind of hazardous
area.
If you have an
agent representing you, this is almost automatic, but many
states do not require individuals selling their own home to
provide you with this information. Often they do not require
banks selling foreclosed property to provide these disclosures,
either. Obtaining these types of disclosures should always be a
part of your offer, and time is of the essence.
Condition
of the Property
The last thing
you want when you assume possession of your new home is to find
it in a total mess. Therefore, you should make it clear in your
offer that certain minimum standards are required. If you do
not, you might find out the seller or neighbors have begun using
the back yard as a trash dump, or something worse – and you
would not be able to do anything about it.
Some of the
requirements you might want to include in your offer are that
the roof does not leak, the appliances work, the plumbing does
not leak, that there are no broken or cracked windows, the yard
has been kept up, and any debris has been cleared away.
Home
Inspections
Besides
appraisal and the termite inspection, you should also have a
professional go through the house and seek out potential
problems. Of course, you will have inspected the home, but you
are not used to looking at some things that a professional will
find. Even if they are not things the seller is expected to
repair, at least you will have foreknowledge of any potential
problems.
The seller will
want this inspection performed quickly, so that you can approve
the results and move forward with the purchase. Once you receive
the inspection, you will want to allow yourself sufficient time
to review and approve the report. If you do not approve the
report, you may negotiate with the sellers on which repairs
should be performed and who should pay for those repairs.
Otherwise, you can cancel the purchase without penalty, provided
you have included timetables in your offer.
Allow a maximum
of ten to fifteen days to receive the report and five days to
review it.
Final
Walk Through
Before closing,
you will want to revisit the property to ensure it is in the
condition you have required in your offer, and to inspect that
any required repairs have been performed. You should do this no
sooner than five days before you intend to close. Make sure this
right to do a final inspection is included in your offer to
purchase the home. |
