In my contract I have an inspection contigency. The bank owned property that I made an offer on sent over their addendum as part of the contract. There is a clause that states-"upon signing this counter, Buyer states that he/she has thoroughly inspected the property and releases inspection contigencies, and accepts the property in its as-is condition." I questioned my realtor as to why I am signing this before final inspection and she stated that my contract has an inspection contigency that is still enforced. Doesn't that clause supercede the contract?
2007-10-21 02:17:24 · 4 answers · asked by iluvthetaz 1 in Business & Finance ➔ Renting & Real Estate
A little trick. Put a 5 day attorney approval in the contract, most have them already and get your inspection done during that time. Have your attorney hold off with approving the contract til the 5th day.
But yes that rider states exactly what you are saying. It says you did the inpsection. Note that most of those paragraphs I have seen lately state we are taking the house in as-is condition and releasing them of their obligation to perform any repairs needed, but it doesn't state we cant do an inspection. As far as the paragraph superceding ... no..if the inspection clause on the contract hasn't been crossed out, it should still be good. I'm guessing that rider makes mention to "Replace paragraph XYZ with this verbage" and that's how they are changing it.
2007-10-21 03:22:46 · answer #1 · answered by RealtorV 3 · 0⤊ 0⤋
Do not sign the bank addendum unless you are willing to accept the property in its current condition. Your other option is to delay signing the addendum until your inspection is completed, and that you are satisfied with the outcome of the inspection.
You are correct in that signing the addendum will override your initial contingency in the offer to purchase. (And give your realtor a slap alongside the head for giving you incorrect advice.)
2007-10-21 09:34:39 · answer #2 · answered by acermill 7 · 1⤊ 0⤋
SHE IS WRONG!
DO NOT SIGN THE ADDENDUM!
When they sent over that addendum for you to sign, they were informing you that they will NOT permit you to cancel a contract due to an inspection issue....in other words, they rejected THAT PART of of your contract and since it will be dated AFTER the original contract, the addendum prevails.
You are absolutely correct...AS-IS means just that...you agreed to take the property no matter what the conditon.
AGAIN, DO NOT SIGN IT.
2007-10-21 10:10:32 · answer #3 · answered by Expert8675309 7 · 0⤊ 0⤋
You are correct and your agent is wrong.
The suggestions (answers) you are receiving on this site are accurate.
I would let that agent's broker know about the advice you received so that the agent can get better educated and not make this mistake in the future. You'd be doing the agent a favor (and potentially saving the brokerage from lawsuits, something we brokers don't like! :-).
2007-10-25 03:32:56 · answer #4 · answered by Genki 3 · 0⤊ 0⤋