Legal Question in Real Estate Law in California
Home Purchase Agreement: Addendum?
I had my offer accepted 10 days ago on a bank owned home. The termite inspection hasn't been done yet as an escrow company needed assigned prior to doing the inspection (done). Meanwhile, I recieved addendums twice as to the seller being exempt from virtually everything. I signed them all and a revised purchase agreement which had $ amounts for both parties and it stated closing of escrow by June 20th or every day thereafter me paying $215/day (which I didn't like since I don't even have a final purchase agreement yet!
I had a home inspection done. A few minor things need attention. Found out from my mortgage lender that the appraisal will consist of an inspection type where the pool needs to be filled up to be run and tested, the missing vanity and sink, and all missing lights will have to be installed before the FHA loan approval.
I connected my buyer agent with my lender and he is working on an extension of the closing date and stated that the seller needs to get the house up to par for the appraisal/loan approval. I worry I will be paying that $215/day FEE? Do I need to have him write an addendum or revised purchase agreement? Should I have that they have the house ready for approval by a certain time?
Thanks, Robert
1 Answer from Attorneys
Re: Home Purchase Agreement: Addendum?
It seems to me that you are asking lawyers to express business judgment, i.e., advise you on whether deal terms are good, or what additional concessions you need to negotiate. Even lawyers that work for clients for years are justifiably reluctant to express such opinions.
I'd just make a couple of possibly-helpful suggestions. First, since you have a licensed buyer's agent, rely on him or her to help you with deciding on, negotiating and drafting addenda. Your agent owes you a fiduciary duty to perform such chores competently. If you doubt your agent's experience or competence, involve the agent's broker in the discussions. Second, don't expect a bank dealing with its foreclosed property portfolio to do a lot of work or spend much of its money to get the property ready for inspection. Passing inspection is your problem. Someone else may be waiting in line to buy that property for cash, as is.
Finally, re-examine your business plan and ask yourself how many $215 hits you can take before the purchase looks like a bad deal.
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