Mike’s Real Estate Show

If you use the C.A.R. contract you can set the time frame for ALL your inspections. This is called the “due diligence” phase of the contract where you can order any/all reports you feel necessary to make an informed decision to purchase the property. Sometimes reports are prepared in advance for you such as Pest Control and Home Inspections plus other “inspections” which may be required by the City you reside. You can then amass your reports and if they look acceptable to you, remove your contingency as per the particular clause in the contract for physical inspections. If you have some issues on the reports which have a dollar amount attached and our pretty black and white then you can remove your physical conditions “subject to” the Seller either having the work done or crediting you for the work to be performed. The Seller can then accepts, reject or come back with another number. If they accept your fine, reject, you can accept that or cancel the deal, or negotiate further. The lender will only allow so much credit towards Non-Recurring closing costs.  Check with your lender. You may not wish to stipulate which reports you wish to have done in the contract but keep it generic. This is done to not draw the attention of parties NOT of the transaction who may insist they see the reports. I would rather have the Seller/Buyer work out any issues on reports and not get the Lender involved in the process. Your Realtor should be savvy enough to know this!!
  When you remove your physical contingencies this is done in writing and therefore must be agreed to by the Seller also in writing. If they do not respond to you by either signing the contingency removal form or issuing a “counter-offer” then your Realtor should force the issue by either a “24 hour notice to perform” wherein the Seller is put on notice they need to respond.
  You must stay true to your timelines. If you have 17 days to do your inspections then respond within that time frame. If you need more time request it in advance of the time elapsing. If the Seller rejects your request you can then accept their position or make another counter and/or just bail on the deal. Be mindful though if this is a “hot” property (yes, they STILL exist) or an REO (bank owned) as the Seller may not be in the mood for any credit or negotiations. REO’s only like one request (if that!) so don’t come back and start nickel and diming the Sellers. Take your best shot and be done with it.