George Clements Greenville, SC Real Estate

George Clements ~ Greenville, SC Real Estate

Paragraph 16E of the Contract for Sale is titled "OTHER" and looks something like this:

(E) OTHER: The property is sold with the following additional stipulations. ____________________ The Seller will not be required to make any repairs until the Purchaser’s financing has been approved.

This is where you would list any other inspection or special situation that might be associated with a property. Every home is unique and might have a special issue that the purchaser could be concerned about.

This also states that the seller does not have to start any repairs until the purchaser's financing has been approved. This protects the seller from making a lot of costly repairs only to have the transaction fall through because the purchser's financing fell through.

George Clements ~ Greenville, SC Real Estate

Paragraph 16D deals with what types of repairs the seller will be required to do and looks something like this:

(D) REPAIRS: To the extent the Purchaser has requested such repairs, the Seller agrees to make or pay for
repairs to the following items: (1) Structural defects or damage; (2) Leaks to roof or basement; (3) Repairs
required to place the heating, air conditioning, electrical and plumbing systems and any appliances to be
conveyed in an operative condition and functioning properly; (4) Repairs required to cause the sewer or septic
system, well water system, irrigation system, pool or spa and any related equipment to function properly; (5)
Repairs required to mitigate the presence of any hazardous substances; (6) Replacement of any missing or
cracked glass. The Seller will have no obligation to repair or replace any double glass panes which have lost
their seal (fogged); (7) Repairs required pursuant to Paragraph 16 (B) above; (8) Repairs required pursuant to
Paragraph (C) above; and (9) Repairs required by a VA, FHA or other appraisal. If the Seller refuses to make or
pay for repairs per items (1) through (9) above, the Purchaser will have the right to terminate this Contract and
receive a return of the earnest money subject to provisions of Paragraph 14, and neither party will have any
further rights hereunder. If the Purchaser elects not to terminate this Contract, the Parties will proceed hereunder and any requested repairs refused by the Seller will be the sole responsibility of the Purchaser. Further, if the Seller agrees to make or pay for the cost of the repairs requested by the Purchaser, the Purchaser will not have the right to terminate this Contract and the Parties will proceed hereunder. The obligations of the Seller under Paragraph 16 terminate on the day of closing or on the day of possession, whichever occurs first.

There are basically 9 types of repairs that the seller has to make if the purchaser requests that they be done. Structural, leaks to roof or basement, systems not working properly (HVAC, electric, plumbing, and appliances), sewer/septic, hazardous substances, cracked glass (excluding broken seals/fogged glass), radon, termites, excessive moisture levels, and any repair required for a VA or FHA appraisal.

Anything that does not fit in this list is usually considered cosmetic and the seller is not required to fix it.

VA and FHA loans are a different story though. They can require the seller to take care of issues that would normally be considered cosmetic. For instance, if there is exposed wood on the outside of the house, the FHA appraisal will not pass unless the seller covers or paints the wood. Another instance would be a broken plate on an electric receptacle.

If the seller refuses to have issues mentioned in this paragraph taken care of then the purchaser can terminate the contract. If the seller agrees to fix any issue mentioned in this paragraph then the purchaser cannot pull out without being in default.

George Clements ~ Greenville, SC Real Estate

Paragraph 16C of the Contract For Sale deals with termites and moisture and looks something like this:

(C) WOOD INFESTATION/MOISTURE REPORT: Purchaser will, at their expense, have the property inspected
and obtain a CL-100 Wood Infestation Report from a licensed and bonded pest control operator. If any
infestation, structural damage, or excessive moisture is found, the Seller agrees to have it corrected, at Seller’s expense, subject to subparagraph 16 (D) below. If new construction, a soil treatment letter will be provided by
Seller.

It is always a good idea to have a CL-100 report done on a house before purchasing it. If any termites or excessive moisture levels are found by the inspection then the seller must address these issues. Treating termites can cost anywhere from $400 to $1200 and excessive moisture issues depend on how serious the problem is and where the moisture is coming from.

If the termites or moisture have cause structural damage then the seller must address this as well.

A normal CL-100 can cost anywhere from $75 to $150 and George can give good recommendations for this.

George Clements ~ Greenville, SC Real Estate

Paragraph 16B of the Contract For Sale deals with Radon and the condition of the property. The paragraph looks something like this:

(B) RADON: Notwithstanding any other provisions in this Contract, should test results indicate the presence of
radon in excess of EPA standards for a habitable dwelling, the Purchaser will have the option to terminate this
Contract and receive a return of the earnest money deposit subject to provisions in Paragraph 14 of this
Contract, with neither party having any further rights hereunder. Should Purchaser elect not to terminate this
Contract, the Seller will mitigate the presence of the radon that is in excess of EPA standards for a habitable
dwelling subject to subparagraph 16 (D) below.

Greenville, South Carolina has some of the highest levels of radon in the country according to the EPA website. Many home inspectors can also do radon testing to see if the radon in a home is below the EPA's danger level. The EPA says that anything over a level of 4 in their testing is considered a risk.

According to this clause, if there is radon higher than a level 4 then the purchaser can pull out of the contract have the seller mitigate the issue. The seller can mitigate the issue by having a radon ventilation system installed in the house that would vent any radon gases out of the house. New homes come with a ventilation system as part of the house and normally a fan just needs to be added in the attic to suck the radon gases out.

A radon test normally costs around $150. For more information on radon visit the EPA's website.

George Clements ~ Greenville, SC Real Estate

Paragrahp 16 of the Contract For Sale deals with the condition of the property and has 7 sections dealing with condition. Section A deals with inspections in general and looks something like this:

16. CONDITION OF PROPERTY: (A) INSPECTION: Purchaser will have the right and responsibility to inspect or select an inspector(s) at Purchaser’s expense to make any inspections, tests, or investigations, including, but not limited to testing for air quality, mold, radon gas and asbestos and to verify the square footage of the Property. Seller will make the Property available for all inspections and will have all utilities in service for the inspections, appraisals and final walk through or re-inspection. Purchaser will indemnify and hold the Seller harmless from any liability arising as a result of any negligent acts or omissions of any inspector(s) and/or their agents during such inspections, and will repair any damages to the property, resulting from same. Purchaser will provide Seller or Seller’s Agent with a written and signed list of repairs requested including CL-100, (See GGAR Form #502 Grvl, Purchaser’s Requested Repairs/Seller’s Response), excluding appraisal and occupancy permit requirements, if any, within _________ calendar days after the Effective Date. Failure of Purchaser to notify Seller or Seller’s Agent in writing or provide a copy of any inspections, with list of requested repairs attached, within the specified time shall be deemed a waiver of Seller’s obligation, if any, to make any repairs listed on the inspection report(s). Seller agrees to respond in writing to the Purchaser’s list of requested repairs within_________calendar days after receipt of said list by the Seller, acknowledged by Seller’s signature and date. Failure by the Seller to provide a signed response to the Purchaser’s written request for repairs within the specified time shall be deemed acceptance of Purchaser’s request as submitted. Purchaser shall respond in writing to Seller’s written response within_________days after receipt. Otherwise, failure by Purchaser to respond within the specified time shall be deemed acceptance of Seller’s response to Purchaser’s request.

This clause gives the purchaser the right to have the property inspected for anything they think is important. Normal inspections include a general home inspection, CL-100 (termite/moisture), radon, etc..

A certain amount of time to complete the inspections is to be place in this clause and is normally 10-15 days. I usually like to put 15 days if I am representing the purchaser because good inspectors can be booked up for days and it might be a little while before they can get out to the property. The purchaser must submit their repair request in writing by the end of that 15 days or the seller will not be required to fix anything. Items that sellers are required to fix are mentioned in latter clause.

The two remaining blanks are normally filled in with 5 and 5. This gives the seller 5 days to respond to the repair request saying what they will fix and will not fix and the purchaser 5 days to respond to that response. If the seller does not respond within the 5 days then they are accepting to do all of the requested repairs. The same goes for the purchaser if they do not respond to the response.