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In CT 14 days and after inspect 3 days,Just went thru inspect,the report is about 20 pages long with a summary of 8 pages which is plenty of info as to whether to accept or request repairs.This is third inspect very thorough.Also inspect has to be licensed by state to be enforceable.Cost me $275 each,very worthwhile.
Last edited by DanBev; 09-03-2012 at 08:32 AM..
Reason: correct spelling
thession, I advise all of my sellers to get a pre-inspection, and they all agree with the reasoning I give for them doing so, and they almost never do it. I know other agents with the same problem.
One thing to remember - the option period here in Texas is not JUST for the inspection but for the buyer to do their "due diligence", to see if there's anything at all that might cause them to not wish to buy the home (quarry going in next door in the next few months, planned road widening that would greatly impact traffic and/or take some of their property, oak wilt all come to mind as examples). Inspections are just part of it.
Not in Texas. It's a completely different addendum to attach to an offer IF you want financing to be part of your transaction.
Since the financing is a contingency option, I am assuming there is a separate (from the option fee) deposit for financing that is not unconditionally refundable?
Since the financing is a contingency option, I am assuming there is a separate (from the option fee) deposit for financing that is not unconditionally refundable?
There are no Monies associated with a Financing contingency. Financing has 2 actual financing options
1. Approval of the Buyer for a loan at the terms agreed (a set time period)
2. Approval of the house - which can go all the way to the day of closing.
That's the reasons we make an effort to make sure the Buyer has talked to a lender and been Pre- Qualified and the house is priced right for the appraisal.
If the Buyer or the House is not approved for financing the buyer may terminate the contract and get their EM returned.
To note: There is also an option where a home is not contingent on Financing. Usually this is a cash buyer.
However, the Third Party Financing Addendum does give the buyer a certain number of days (negotiable) within which to inform the seller that they cannot get approval for financing without losing the earnest money. This is separate from the house appraising and being approved, of course, as the buyer has no control over that.
However, the Third Party Financing Addendum does give the buyer a certain number of days (negotiable) within which to inform the seller that they cannot get approval for financing without losing the earnest money. This is separate from the house appraising and being approved, of course, as the buyer has no control over that.
So if I was a buyer in TX and wanted a financing addendum (contingency), I would want the option period to be long enough to not only cover inspections, but also securing a loan. If i was denied a loan after the option period I would lose my EM as well.
By this reasoning the "typical" option in TX should be at least 3 weeks, correct?
No. Two different deadlines. Put very briefly (and you'd want to read the actual contract and addendum because I am NOT an attorney nor do I play one on C-D):
There is the Option Period, which is usually 7 to 10 days (varies and is negotiable), usually there's about a $100 payment (that also varies) that the seller gets to keep if the buyer walks during the Option Period.
Then there is the Third Party Financing Addendum which allows a longer period of time (usually from 21 to 30 days depending on how fast mortgages are being approved at the time the offer is made and the contract entered into and who the lender is) for the buyer to find out from their mortgage lender that they do not qualify for the loan and to notify the seller in writing of that fact without losing their earnest money.
There are various other deadlines in the contract having to do with such things as receipt and acceptance of the survey by the buyer (and the title company and the lender), receipt and acceptance of any restrictions (HOA, usually), and assorted other things that must be provided to the buyer and the buyer has a certain period of time to review them and get out if they are objectionable. On some, the seller has a certain period of time to "fix" them (we're not talking repairs to the house here) or try to, as well.
So the option period applies to things wrong with (or about to be wrong with - quarries or roads about to be built, that kind of thing) the house or the neighborhood, and is a shorter period of time at the beginning of the contract period. The others are things that are wrong with the title or the restrictinos or various other of the myriad things that apply when purchasing real estate. You didn't think buying a house was as simple as buying a computer, did you?
No. Two different deadlines. Put very briefly (and you'd want to read the actual contract and addendum because I am NOT an attorney nor do I play one on C-D):
There is the Option Period, which is usually 7 to 10 days (varies and is negotiable), usually there's about a $100 payment (that also varies) that the seller gets to keep if the buyer walks during the Option Period.
Then there is the Third Party Financing Addendum which allows a longer period of time (usually from 21 to 30 days depending on how fast mortgages are being approved at the time the offer is made and the contract entered into and who the lender is) for the buyer to find out from their mortgage lender that they do not qualify for the loan and to notify the seller in writing of that fact without losing their earnest money.
So if a buyer gets the financing contingency, they typically get to hold the property for 3-4 weeks for about a $100! Do many sellers accepts this? Would think not.
So if a buyer gets the financing contingency, they typically get to hold the property for 3-4 weeks for about a $100! Do many sellers accepts this? Would think not.
I would think most financing contingencies let the buyer hold the property for at least that long. And I'm guessing most places don't even have to pay $100. I know I never had to.
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