Legal Question in Real Estate Law in California
real estate law: I'm the buyer who wrote up an offer with seller financing. The only way the seller is accepting the offer, is if he's allowed to periodically check on the property to inspect it over the 7 years of the note. . is that legal? I feel like it's a deal killer and an invasion of privacy, I've already agreed to everything else he's asked as far as asking price, down payment and interest rate.... please help me, I can't find any information anywhere regarding this matter...
3 Answers from Attorneys
Have him notice the inspections and arrange for times convenient for you. If you are on good terms it wont be too bad. Let me know if you would like help.
Best,
Daniel Bakondi, Esq. [email protected] 415-450-0424
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Commercial loans almost invariably have an inspection clause, though it usually doesn't kick in unless you are late in your payments. That would seem to be a good starting point to work this out. The short answer, however, is that it is neither illegal, nor unusual for lenders to have some form of inspection rights.
I do not see why the seller can not make that as a requirement. He wants to insure that the property is not damaged. It is similar to a landlord making periodic inspections of a rental unit; tenants do not like it, but it is reasonable. By getting the seller to agree to not get the full price upfront, you have to accept what is basically reasonable.