Dear Michael: We are in escrow on our home and the buyers are not respecting the contingency dates. We are now 10 days past the date of removal. Don’t they have a contractual obligation?
Answer: The buyers of your property are technically within their contractual rights unless you have given them a Notice to Perform (NTP). Removing contingencies is an active method of removal (when it must be done in writing by the buyer). The residential purchase contract states: “seller shall give buyer a NTP to take the applicable actions”. The time period for a NTP is usually two days. If your agent has not yet given the buyers this notice then I suggest you get it done ASAP. If at the end of the time specified in the NTP the buyers have still not removed their contingencies, then you have the right to cancel the agreement. Your buyers may have legitimate reasons that you may or may not sympathize with to extend the contingency time period. The decision is strictly up to you. Having said that, to be 10 days past the contingency period seems to me beyond any reasonable time period.
Dear Michael: My agent is leaving town for one week, I am worried that she will not be able to attend to all the chores that need to be performed while selling my home. Can you let me know if I would be asking too much by asking her to stay?
Answer: This day in age real estate agents have what is called call a “Virtual Office’. We can do it all from anywhere. The industry has changed to where realtors are now able to perform tasks from a cell phone, tablet or lap top. This was once unheard. We could not have envisioned how technology would change our industry in such a positive way. The fact that your agent is gone for one week should not impact the way your property is being handled. I am sure that your agent, as I would, took all the necessary measures and had a co-agent handle the sale of your home if there should be any showings or other tasks that would require a physical presence. Real estate agents also have the right to a vacation! It is very difficult to book a family vacation three to six months prior to any date of departure not knowing how much work we will have at that time. Communicate your concerns to your agent and let her reassure you that everything will be fine.
Dear Michael: I am making an offer on a house where the term “As Is” is used in the description. Should I worry about buying the house in its current condition? What if it is in need of major repairs?
Answer: “AS IS” means the property is sold without the seller making any repairs. This is common language for foreclosure and short sale properties where the seller will not make any repairs. In exchange for the as-is condition of a foreclosure and short sale the buyer will usually buy the property at a discounted price. The term “as-is” can also mean that the buyer is buying the property in its current condition. All repair items may not be noticeable so it is a good idea to get a licensed home inspector to inspect the property. I am aware of a situation where a buyer didn’t want to pay for a home inspection because he/she felt that the seller was not going to make any repairs, because it was being sold “as-is”. This is faulty logic: as a buyer it is imperative to know everything about the home you are buying. The condition of the property is one of the most important factors. And, yes that includes a termite inspection or any other conditions requiring inspection. Keep in mind, it never hurts to ask. More often than not, when a seller is in escrow and is motivated and really needs to sell their home they will compromise and make or credit repairs despite the as-is clause.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact him with your questions at (310) 390- 3337 or email them to him at: homes@agentmichael.com