Tucson Home Inspections And Due Diligence

Dated: 01/20/2017

Views: 130

An accepted offer triggers the start of the inspection period. This is one of the most critical parts of the process to both a cash buyer and a financed buyer. A buyer has, by contract, 10 days to complete all manner of inspections that he/she desires on the property, unless otherwise stated in the contract under additional terms and conditions.

The buyer's real estate agent is generally not qualified to discover defects or evaluate the physical condition of property; however, a real estate agent can assist a buyer in finding qualified inspectors and provide the buyer with documents and other resources containing vital information about a prospective property, such as the Buyer's Advisory.  This advisory is a source of resources a buyer can utilize during the inspection period.

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The importance of having a property inspected by a professional inspector cannot be over-emphasized. An inspection is a visual physical examination, performed for a fee, designed to identify material defects in the property. The inspector will generally provide the buyer with a report detailing information about the property’s condition. The buyer should carefully review this report with the inspector and ask the inspector about any item of concern. Pay attention to the scope of the inspection and any portions of the property excluded from the inspection.

The physical inspection of the property may indicate that a specialist should be called to examine a particular issue. If the buyer so desires specific inspections can also be ordered (at buyer’s cost) subsequent to the general inspection: pest, roof, plumbing, swimming pool, surveys, etc. and must be performed within the original 10 day inspection period, unless otherwise stated in the contract.

During the inspection period additional information that is relevant to the property is reviewed and a buyer has either until the end of the inspection period or 5 days after receipt of the information (which ever is longer) to accept or disapprove the information received. The items of importance are:

Sellers Property Disclosure Statement: On this document, the seller answers questions about the property and it's condition. A buyer should carefully review the document and verify those statements of concern

Preliminary Title Commitment: This is provided to the buyer by title/escrow company. The report lists exceptions to Title Insurance and anything that might prevent the transfer of clear title to buyer.

HOA Demand Letter: The Home Owners Association provides information on periodic HOA fees, transfer/disclosure fees, capital improvement fees, and the amount in the capital improvement fund. CCR's and governing HOA documents are available from the HOA for buyer's review.

Insurance claims history: Has insurance ever been interrupted on the property for any claim? Can you obtain homeowners insurance on this property? A buyer should know that he/she can obtain insurance on the property being purchased.

Lead Based Paint Disclosure: If the home was built prior to 1978, the seller must provide the buyer with a lead-based paint disclosure form. Buyer is further advised to use certified contractors to perform renovation, repair or painting projects that disturb lead-based paint in residential properties built before 1978 and to follow specific work practices to prevent lead contamination.

Keep in mind that no house is perfect, even brand new ones. It is up to the buyer to determine what issues are most critical and which ones are minor. Once determined, the buyer can request the seller remedy them or if the issues aren’t deemed to be major, the buyer can make the decision to remedy them at a later date.

Once the inspections have been performed, the buyer has the option of:

1. electing to accept the property – no corrections requested

2. disapproving of particular items discovered through the inspection and electing to immediately cancel the contract

3. electing to provide Seller an opportunity to correct the disapproved items specified.

The Seller may agree to make the repairs, disagree to make the repairs or make an offer to meet some of the requests made. The buyer then gets to agree to the seller’s response or has the opportunity to cancel the contract.

Once the buyer accepts the sellers response and has investigated all other issues of importance, the appraisal is ordered and the transaction moves into the post inspection phase.

Hang on, you're getting closer to the closing table!


Maria Trujillo

Selling or buying a home is more than just a transaction—it’s a life changing experience for you! That’s why providing you exceptional, personalized service is imperative. By understanding you....

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