The Repair Addendum – Last Minutes of Due Diligence
Ok, now that we are getting back to normal from Hurricane Matthew, let’s finish up Due Diligence by submitting a Repair Addendum to the Sellers. This is the List of Repairs you thing should be done before you will buy the home. You plan to Rehab the house so no sense in fixing things you plan on Tearing Out our fixing as part of the rehab.
Here is the list you and your contractor/inspector have found and you will have your Realtor® present to the Listing Agent:
- Small leak around vent tube on roof
- Moisture build up along the foundation – need landscaping done to slope the grade of the dirt away from home. They have no gutters, so a long line of small ditches along the home and water doesn’t drain away.
- Flaking paint on trim around door frames (garage mainly), so that should be painted and caulked to keep the water out of the wood and home.
- Dryer Vent is not connected anymore to outside. Lint is building up in the attic and needs to be reattached, more securely.
- Storm door on back of home is old and not closing right and screen has holes. This should be replaced.
This Repair Addendum (SC Form 525) is submitted to the listing Agent and the Listing Agent submits it to the Seller. The Seller have some options here:
- They can agree to All the repairs, and simply sign the Repair Addendum and deliver it back to the Buyers.
- They can decide on which Items they think should be repaired and initial each and cross out what they don’t think should be repaired or they just don’t want to repair.
- They can refuse to fix anything.
Here are the Options once the Buyer gets either of the above mentioned options the Seller has:
- Seller agrees to all fixes – Re-inspect after the Repairs are completed as requested, then continue to Closing.
- Seller offers to fix only part of the Items on the list – Buyer can walk away, since you are still in Due Diligence Period. OR Buyer can counter to the Repairs OR Accept what the Seller offers to fix.
- Seller Refuses to Fix anything – Again the Buyer can walk away, Counter OR Take the House As-Is.
In this case, let’s say the Seller agrees to fix number 1, 3, 4. They have stated that number 2 is not something of importance and feel the buyer can put some dirt down to fix it themselves. They state that number 5 will be fixed by carpenter so it closes properly and the door has a sliding storm window and that is good enough. If the buyers want a screen in it, they can buy one themselves and put it in.
Next week we will go over the Counter Fixes the Seller suggests and try to get this Home bought in the normal time (20-40 days).
Gary Buchanan/Realtor® w/AgentOwned Realty - email@example.com 843-647-7743