Termination

[Jordi]

I am a first time home buyer. I recently signed a contract for a house I thought was my dream home. We ordered a termite inspection done as soon as we got the contract back and it was found that termite infestation was present and repairs would be needed. The seller is not willing to pay for any of the repairs. After speaking to my wife, we have mutually decided to terminate our agreement.

We sent them a cancellation of contract form (legal release of claims) for the seller to sign and return. My real estate agent claims that is all that will be necessary. Here is the clause in the contract regarding inspections.

No warranties, expressed or implied, are included in this sale. Subject property is being sold in its present "AS IN" condition. Buyers will satisfy themselves as to the condition of said property and their requirements regarding permitted and non-permitted areas on the subject property. Buyer is to provide any objections to inspections by 11/10/2007.

My question is, according to only the above referenced portion of the contract, were we within our legal rights to object and terminate the contract? I believe we were, but the listing agent for the property just called over the weekend and threatened to sue because we terminated the contract. Doesn't the above said portion give us that right based on the termite inspection?

 

[moburkes]

Unless there is something else in the contract, you agreed to purchase the property AS IS.

 

[Jordi]

Unless there is something else in the contract, you agreed to purchase the property AS IS.

Then why would they have put,

Buyer is to provide any objections to inspections by 11/10/2007.

 

[moburkes]

Because they can attempt to negotiate. However, they are not required to.

 

[Jordi]

I guess I'm confused. I guess the 11/10 deadline was the resolution deadline?

The object of the Inspection phase of the contract is to achieve Resolution on or before the Inspection Resolution deadline. Resolution is basically a middle ground that both parties can agree to. The items which should concern you most are the “big ticket items” such as furnaces, roofs, water heaters, etc- things that will be expensive to repair or replace after you purchase the home. If the Buyers and Sellers fail to resolve these inspection issues, the contract may be terminated.

 

[VeronicaLodge]

is there another section in the contract regarding contingencies? most home buying/selling contracts have contingencies listed such as inspections and obtaining financing and sometimes selling a current house.

 

[HomeGuru]

I guess I'm confused. I guess the 11/10 deadline was the resolution deadline?

**A: no, read the contract.