How And When Should Repairs Be Made Before You Close On Your New Home?
One of the most confusing steps in the process to buy a home is the inspection period.
Often, contracts can come apart at the seams and dreams can be crushed because buyers and sellers don't fully understand the inspection period or the terms of the contract that highlight how inspections and repairs should be handled.
We never want to see our buyers and sellers suffer from confusion or lack of education about things like inspections so today we're explaining the repairs process.
Once the inspection report comes back and both parties come to a written agreement about what is to be fixed, it is time to tackle the how and when of those repairs. Florida law says:
All repairs and replacements shall be completed in a good and workmanlike manner by an appropriately licensed person, in accordance with all requirements of the law, and shall consist of materials or items of quality, value, capacity and performance to, or better than, that existing as of the Effective Date."
If you're like most people, that phrasing is a bit confusing so let’s break down what the law says a bit further.
What is “Workmanlike Manner”?
In the first part of that paragraph, you will notice that the repairs and replacements are to be made in a workmanlike manner. But what does that mean? Well, if any of the repairs needed are legally required to be made by someone with a license, you will need to hire a licensed worker to complete them. This could be a plumber, electrician, engineer, etc.. However, if the repair is something small like a hole in the drywall, it can probably be fixed by anyone with the skill.
What Is “Replacing”?
The next term which causes some confusion is replaced. The law states that a replacement must “consist of materials or items of quality, value, capacity and performance too, or better than, that existing as of the Effective Date" of the contract. Let’s say that the modern stainless steel dishwasher must be replaced. The seller cannot replace it with an older, less valuable one that they found at a dent and ding store. This is because it wouldn’t be of the same materials and value to the buyer.
Once necessary repairs and replacements have been identified by both parties, a timeline for those to be completed must be implemented. Obviously, most people make closing the deadline for these to be made.
However, in some cases, it is impossible for the seller to make the repairs and replacements in time for closing. This does not mean that the deal needs to fall apart! When this happens, the law will allow you to close with the seller to pay 125 percent of the estimated costs to complete the applicable items(s), but not to exceed the General Repair, WDO or Permit Limits, must be placed into escrow at the Closing. If the buyer does not use the full amount of the escrow fund, the remaining funds will be returned to the seller.
Re-inspections & Walk-Throughs
As a buyer, you do have the right to have another inspection performed after the seller makes the agreed-upon repairs and replacements. You yourself and/or your Realtor may also walk through the property on the day before or the day of closing (prior to the closing) to ensure that all demands have been met by the seller. It is highly recommended that you take advantage of this right every time you purchase a property.
Superior Service Without The Premium Pricing
Not only do you deserve to have the highest quality service from your Realtor, but you also deserve to pay a fair price for that service.
At Uber Realty, we will never overcharge you the sky-high commission rates of 6% that those other guys demand. In fact, on average, we save our seller $6,000 on the sale of their property!
There’s no need to try and navigate the complexities of things like inspections and negotiations when you buy and sell real estate. Simply hire a Realtor that cares more about helping you achieve your goals than padding their own pockets.
For more information about how we can help you save thousands when you sell your property, email [email protected]