 Sellers Tips
Why Termite Reports Cause Problems Termite reports are not required by law, but the lender will insist that one be performed and that all the issues raised be corrected. They certainly dont want to lend on a property that is in bad shape. After all, they may own it someday. The problem begins here: buyers and sellers will enter into a contract to agree that one party will pay for repairs recommended in the termite report. I cant imagine a buyer that would not want all the work performed according to the report. This means that the seller may be forced to perform corrective work that may not be required under state law or under the purchase contract. Failing to do so could result in the loss of sale. A seller may want to have more than one report since a lot of money is involved and a second opinion is reasonable approach to a very high set of corrective recommendations. To avoid the problem get a termite report before you put it up for sale. This way, you will know your maximum liability for structural damage, and you will have the option of having all the work performed before possibly scaring the buyer with the potential work required for clearance. The cost of a termite report is either the buyers or sellers determined through negotiation, unless you order one before you list. Who Pays The cost of the report is negotiable with tradition in your geographical area often setting a precedent or at least a guideline. In general, the seller agrees to pay for the repair work, or at least a portion of it, while the buyer pays for the termite report and any preventive work.
Abusive Pest Control Companies Pest control companies which do termite inspections are licensed and regulated by a state structural pest control board, and all of their inspection reports must be filed with the board. The board makes available to the public copies of any report filed on a building during the preceding two years. Buyers: It can save you a lot of headache if you take the time to review the pest control reports for any property you are thinking of buying. Termite reports cause numerous problems in escrow partly because the company which inspects a building also submits the estimate for doing the work. In other words, the termite company determines the extent of the damage, the work to be done and then charges for doing it, and after the work is completed, the company also clears the report. If the inspector finds that some work needs to be done, he usually gets the job to do that work. If he doesn't find anything wrong with the structure, he doesn't get any work. Think self interest may play a part in some of the recommendations? After all, there is often more than one way to fix a problem and at least one most expensive way.
Protect Yourself From Outlandish Repair Estimates.
Building Inspection In addition to a termite report, a buyer should order a complete building inspection (The inspection usually covers all major systems including foundation, plumbing, electrical, roof, heating and air conditioning.) made by a licensed building contractor or inspection service. A qualified contractor or inspector will give the building an overall structural inspection covering all major systems, such as foundation, plumbing, electrical, roof, and heating. If you can, be there for the inspection you can determine for yourself if the report is fair and even handed These inspections are important for those who are novices about building construction. Tip: Be sure to include in the purchase agreement the following : Offer contingent upon buyer's full inspection (or inspection by a licensed contractor) and approval of the property within five business days after the inspection acceptance by the seller. Ask your broker or agent for the best legal phrase regarding this insertion. REsourced from www.yourpropertypath.com You may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com
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