Buying a house is one of the most expensive purchases most Philadelphia residents will ever make. For this reason, they need to make sure their purchase contracts include the right contingencies. The home inspection contingency in a residential real estate contract needs to outline just what happens if the inspector finds problems with the home.
The primary purpose of a contingency is to allow a potential buyer to back out of the deal if certain events take place. One of those contingencies that most people have in their contracts is for a home inspection. Yes, the provision allows the buyer to walk away, but it could also outline how any repairs would be dealt with if needed.
During the negotiations concerning the purchase contract, the buyer could identify certain repairs that would put this contingency into play. For example, cracks in the foundation, an inadequate electrical system and plumbing problems could prove expensive to repair. The last thing a new homeowner would want is to have to fix these types of issues on top of having paid the sales price.
The seller may agree to have the repairs done prior to closing, but that could potentially add a significant amount of time to the process. In lieu of that option, it may be possible to negotiate a reduction in the sales price of the home equivalent to the cost of the repairs. Another option would be to have the seller pay all closing costs. Of course, which option is chosen could also depend on the type and cost of the repairs needed.
Negotiating these types of resolutions into a residential real estate purchase contract may not be as easy as it sounds. The parties may need to go back and forth several times in order for both sides to feel satisfied with the solution. It may help speed up the process and protect the buyer’s rights to involve a Philadelphia attorney with experience in negotiating purchase contracts.