03/11/2024
On my last two escrows, two different properties, with me as Listing Broker, agents representing Buyer's have submitted outlandish credit requests for repairs. Repairs are not Upgrades. eg. Upgrade--changing kitchen ceramic tile in good condition to new marble sheet. The Buyer's wanted upgrades. In both escrows, the credits were rejected. One Buyer cancelled. The other Buyer on the other property, continued the escrow to a successful close. In the CAR/California Association of Realtors Purchase Contract, the default clause states specifically that subject property is to be purchased in its "AS IS" condition. . A Home Inspector should definitely be hired. There are many good Home Inspection companies in Fresno. The inspections will note repairs needed. Any repairs noted in the Inspecton Report are not requirments--they are recommendations and any repairs noted to be done can be negotiated between Seller and Buyer. In the event that the property is to be financed through a bank, the bank appraiser will call for items that pose a risk to safety and the bank will not fund the loan unless and escrow will not close, until subject repairs are complete. There are loans that fund for repairs, allowing for escrow to close, but that is a whole different situtation. If a Buyer does make a credit request for repairs, with the Seller having the repairs completed prior to COE/Close of Escrow, an invoice prepared by a contractor or handyman should describe those repairs with those concomitant itemized costs forming the justified basis for the repairs to be done.
I will be posting again things to watch out for in real estate transactions.
Other Realtors, feel free to comment.
