What happens if there is something wrong?
Our contract here in the Northwest Suburbs of IL states that 5 business days after the contract is accepted
you have the right to hire an inspector to go through the property with you. If something is found 'deficient' or non-working we have to notify the seller of our findings within those 5 days in writing. It gives the seller the right or option to either repair, replace or state what will be done regarding the problem. Not everything necessarily 'is broken' that is found at the home inspection. Often times, there can be switches that just weren't turned on that only the seller knew about. The seller can send us a letter of clarification on that inspection issue.
If things cannot come to an agreement after 10 business days the contract can be called null and void by either party. This is simply so that the buyer or seller don't continually argue on a particular issue instead of working to a resolve. If the home inspection is found to have some unacceptable deficiency to you as the buyer, your earnest money will be returned to you after notifying the seller of the contract cancellation in writing.
One thing I did want to clarify that is often misunderstood regarding a real estate contract. The home inspection is to discover items that are not in working condition as far as habitability of the home. It does not say that all the switch plates need to be straight, the paint a preferred color or the appliances be in perfect condition left in the home.
Everything left needs to be in 'operational' condition for which it was intended. If the furnace is found not to be working properly (as it effects you living in the house) it must be repaired or replaced prior to closing. In the example of a furnace, the seller would call a certified HVAC contractor (of the sellers choosing, not your brother-in-law) to repair the furnace to get it in good working order.
The refrigerator can have a crooked handle as long as the unit is working, the food is cold and it is generally considered in acceptable condition. If the stove knob is slightly worn from use - sorry, that's the way it comes. No need to bring up these issues during the home inspection.
It is not a checklist for 'let's get everything fixed we find'.
Good morning Lyn, Good job on the post great info. Thanks for sharing.
Lyn. Good post. Our Home Inspection Contingency is different but the intent is the same.
Do your home inspection and either void the contract, negotiate repairs, etc. all within the wording of the contract. Far too many buyers believe that the home should be brought up to new home condition. Nonsense.
One this is for sure in my market. What you SEE is what you're going to get. Inspections are for structural, mechanical, elec., plumb, etc. Keep cosmetics out of the discussion.
As an Illnois attorney, Lyn, I see this a lot. People often ask for eveything they see. That's not what the contract calls for. Good info!
I have only ran into a couple buyer who expecting everything to be fixed. Its really for the things that you found not working that were a surprise to you like you explain.
I usually set the stage with sellers by having them get an inspection at listing thus eliminating the "issues" and setting the stage for a smooth contract with little or no re-negotiation.
For buyers (with the inspector in attendance) I explain the inspection will look for three different types of issues...material...that can effect the safety, structural integrity and health. These will need to be addressed. The second part are the nice too's... they may or may not be negotiated but they certainly do not effect the viability of the house nor should they effect the viability of the contract...some may be taken care of by sellers but only because they want to. The third are all those little things that they as new homeowners will need to watch for and take care of in order to have the house last and to have an easier resale later on. lastly I tell them the idea is not to get a new house... rather a safe one.
Lyn,
I had a deal threatened when the home inspection issues included items such as:
Wish I could've handed them your post but we did get beyond these items!
Perrin: Don't agree there but each agent decides their business practices. It gives me the creeps with the 'let's make it perfect' with the preinspection. There will always be something.
Irene: I'm very good at explaining what it entails. I've had way too many wonderful well taken care of homes nitpicked to death by buyers.
Chuck: Always surprises that you didn't know weren't working etc. I think if people actually remembered how many nails, boards, and working parts a home had they would think of the whole process differently.
Lenn: Very realistic approach, what you see is what you get so don't try & change it during the inspection.
Larry: I'm sure it's very frustrating being an attorney going back & forth over nail hole repairs or other silliness.
Lyn-That's a nice balancing perspective you gave. Inspections should confirm health and safety suitability of the house, and point out deficiencies, but the Buyer should be counseled not to expect Sellers to bring the house up to new condition.
Always a good conversation to have with a "newbie" buyer when purchasing a 're-sale'. "This isn't a brand new property being offered by the developer...no punch lists here!" ;-)