What inspections do most lenders require?

[brymetime]

All,

What inspections do most lenders require?

Thanks,

Ryan

[Aldo]

Although many lenders check the local code compliance office for repair orders (and sometimes history), none I'm aware of requires inspections of any kind unless there are unusual circumstances. Nearly all lenders require appraisals, but those are not inspections.

[brymetime]

Although many lenders check the local code compliance office for repair orders (and sometimes history), none I'm aware of requires inspections of any kind unless there are unusual circumstances. Nearly all lenders require appraisals, but those are not inspections.

Thanks, Aldo.

I should have phrased the question, "What inspections do most Purchase Contracts require?"

Thanks,

Ryan

[brianb_cobbres]

Thanks, Aldo.

I should have phrased the question, "What inspections do most Purchase Contracts require?"

Thanks,

Ryan


Required? Technically none. That said, most buyers insist on a home inspection but that is not required, and depending on state you may have to do termite inspection, radon testing, or well/septic testing.

[dwford]

The recent home inspection at my house turned up something interesting: the plumbing vent does not go to the outside, but terminates in the ATTIC. It was a little moist up there when the home inspector checked. I bought this house new, and have never been in the attic (it's basically a crawl space). Now my buyers want it fixed. But something like that shouldn't have passed the building inspector.

Anyone think I have recourse with the builder after 4 years?

[Jeffery (LCLA)]

Maybe. Many Statutues of Limitation start when you realize or discover that you were wronged. (but I'm not a lawyer so don't take my word on this) In this case, you might want to just ask the builder to correct the problem.

[Dan Auito]

In Alaska a home inspection was mandatory, in Florida termite inspections are mandatory and a general home inspection is not. Sometimes Radon inspections are required and sometimes not. I would ask your local title company what they see as necessary and standard in the way of inspections in your area!

[ThreeRiversREI]

I should have phrased the question, "What inspections do most Purchase Contracts require?"

Are you buying or selling?

If you're buying forget about what "most" require and insert clauses for all the inspections that YOU require -- Termite, property, possibly specialty inspections for specific systems such as HVAC, plumbing, roof, and so on.

If you're selling, you should already know what all those inspections will reveal (because you had them done yourself and have corrected any problems that they originally turned up). So the issue should not be one of what inspections are called for in the contract, but who pays (preferably the buyer) and how long the buyer has to get them done.

That's just my take, though. In addition to Aldo's suggestion to talk to a title company, you could call a local Realtor and ask for a copy of the standard offer form/purchase agreement they use. (Typically its a state or at least regional standard that all RE agent/brokers will be using.

[ZNICK]

The recent home inspection at my house turned up something interesting ... Now my buyers want it fixed.

I would suggest just giving your buyers a credit on the price, and moving forward. I'd bet they'd rather have the cash, lol.
Z

[Aldo]

"What inspections do most Purchase Contracts require?"
The answer is easier than slipping on ice. In most states, the only required inspection is ............well, none. A marginal exception would be the Condition Report which requires an inspection by the seller. Buyers can ask for any kind of inspection they can dream of. Sellers can tell the buyers to pack sand for any, or no, reason if they decline a non-required (by law) inspection.

If you prefer to decline a certain type of inspection which could make or break a deal, you may have to bite the bullet to make the deal work.

[brymetime]

...in Florida termite inspections are mandatory and a general home inspection is not. Sometimes Radon inspections are required and sometimes not. I would ask your local title company what they see as necessary and standard in the way of inspections in your area!

Thanks, Dan.

I thought termite inspections were required here in Florida. I'll have to call my title company to see if anything else is required.

So the issue should not be one of what inspections are called for in the contract, but who pays (preferably the buyer) and how long the buyer has to get them done.

Thanks, ThreeRiversREI.

I am a little confused. How could I expect the buyer to repair a house that they are purchasing?

[COLOR=Blue]
If you prefer to decline a certain type of inspection which could make or break a deal, you may have to bite the bullet to make the deal work.

Thanks, Aldo.

This is true. Sounds like I better plan for due diligence!

Regards,

Ryan

[ThreeRiversREI]

I am a little confused. How could I expect the buyer to repair a house that they are purchasing?

Ryan, your question keeps evolving.

First it was what inspections are required by lenders and the answer was none of what would typically be considered "inspections" except in the broadest sense. Inspect the value (appraisal), inspect the flood status (check the FEMA flood map), inspect the title (title report & insurance), etc.

Then you said you meant what inspections are required by the purchase contract. Again, the answer is generally none.

Then it became what inspections are typically asked for in a purchase contract. The general answer to THAT question is contact a local Realtor and get a copy of their boilerplate offer & purchase contract forms to see what inspect clauses are included.

I expanded on that to point out it's not so much what is "typical" that you should be worried about as protecting YOUR interest and keeping the deal moving forward, regardless of which side you're on. As a buyer, you'll probably want multiple different inspections (property, survey, possibly specific systems like sewer & roof, etc.) to make sure you're not surprised.

As a seller, you disclose what you know about beyond that you concern should not be what inspections the buyer wants to preform, but who will pay for the inspection (preferably the buyer) and how long you will given them to preform the inspections (the sooner that clause expires and their earnest money goes 'hard' the better for you).

Now, is the inspections turn up something unexpected (which they shouldn't if you did your inspections when you bought in the first place) that would potentially be cause for negotiation which could range from: "Tough, I said as-is" to you adjusting the sales price, to you making any and all requested repairs before close of escrow.

But my comment about expecting the buyer to pay for the inspections was based on the assumption that having done your own inspections already, there really wouldn't be anything to "discover".

[brymetime]

Thanks, ThreeRiversREI. Your answers are appreciated!

Ryan