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You are close to Ending your Due Diligence

Posted By: Gary Buchanan In: Mount Pleasant SC Home for Sale
Date: Sun, Sep 11th 2016 11:19 am

Now remember that you have 10 business days until your Due Diligence period is Over.  You should strive to get all issues found out and then a week or so prior to the end of Due Diligence, you deliver the Repair Addendum with all the Issues That Were Found, describing what you would like the Sellers to do about them.  Today, we will talk about the CL100 Report/Findings.

The CL100 is ordered/paid (in most cases) by the Buyer.  This inspection can also be something your Lender requires, and in any case, I would recommend every time.  Officially this inspection looks for (straight off the SC State Form): termites, other wood-destroying organisms, and wood-destroying fungi. Now keep in mind that the inspector can Not see behind walls, so this inspection is really looking for “signs of infestation”.  This report is only good for 30 days as well. 

Your CL100 inspector has crawled under the home (if accessible) and looking at all areas of the home searching for any of the above issues.  If something is found, then the inspector writes it on the State Form (CL-100) and delivers the findings (the form) to the buyer.   Since you are still under Due Diligence, add these findings to the Repair Addendum and make sure you ask that the repairs be done by a SC Licensed Contractor/Plumber/Electrician, etc.  In some cases the Seller would simply do the repairs themselves and you are stuck with their fixes, if you didn't specify using a SC Licensed contractor.

Once the repairs are done, then your contractor should document the fix as being completed so you the Buyer can have record for anyone who is going to require a Cleared CL100 (it is my understanding that “CL” stands for Clear Letter…fyi….so kinda redundant here…smile).  Remember, that the CL100 Inspector is Not Guaranteeing that the home doesn’t have any of the above infestations, it is simply stating the Inspector did Not see any Infestation at the time of the inspection. 

The bottom line, we are in a Buggy and Swampy area (technical term….smile) and I would ALWAYS recommend getting with your local Exterminator company and have them put a Termite Bond on the Home.  In a lot of the cases, you as the buyer can simply get the existing Termite Bond transferred from the Seller’s protection on the home, to your name (sometimes there is a fee to do this).  The alternative would be to get a Termite Bond asap and this would cost more than a Transfer Fee.

 

Ok….we are getting close to the end of Due Diligence, and next week I will try to cover the last piece of This Due Diligence period, by talking about what the General Contractor is suggesting for Rehab and Costs associated.  I would think that will be 2 or 3 posts as there are a lot of things you (the Buyer) want to be done so you can make it your new Home.

Gary Buchanan/Realtor® w/AgentOwned Realty - gary@garybuchananrealty.com              843-647-7743