Home owner's warranty: no inspections, paid off home, exterminator's records

SassyGirl2 · 10-13-2007, 07:23 AM

Just out of curiosity, I have a question on anyone's experiences concerning the situation addressed below. No legal advice is being sought as I have an attorney. I am of the mindset that information is power and I value opinions as you all seem very forthright on this site.

Have a buyer who has agreed to no inspections because of concessions we are making and throwing in some extras with the sell of our home. Our home is paid off so there is no mortgage company to deal with. We are paying for the attorney, appraisal and home warranty. I have all paper work on any home improvements, maintenance and etc. along with my exterminator's records. I am selling a home in better condition than most new homes in our area and we both want to save money. In essence, once the contract is signed "as is", that is it. You own it; don't call me! I don't want to have to worry about any future problems, henceforth the home owner's warranty. The potential buyer is satisfied with this as the concessions we are making are very appealing to her.

I explained it as comparable to selling a used car. You can expect problems to arise but you wouldn't call the person selling you the car in two years to say "my battery died, replace it."

Has anyone had any adverse experience with this type of agreement I should be made aware of?

jimj · 10-13-2007, 07:53 AM

Just as a buyer, if it was absolutely clear that it's an "as is" sale then I wouldn't think there would be any problems down the road. That being said, people can sue for anything now days so nothing is absolute! Even if you do everything right....

TampaKaren · 10-13-2007, 08:30 AM

It sounds to me like you are doing your part. To my knowledge, after the settlement papers are signed, there is no recourse (unless there's something flaky in your sales and purchase contract).

You didn't mention the buyer's ability to purchase the home. If they are paying cash, closing should be a breeze. If they are getting a mortgage, the lender may have some inspection requirements and in Florida, the insuror will definitely require an inspection.

SassyGirl2 · 10-13-2007, 08:33 AM

Thank you so much for your response. The buyer is going through a mortgage company. The company requires only an appraisal and signed contract. Our home is "for sale by owner".

SassyGirl2 · 10-13-2007, 08:35 AM

Oh believe you me, I am well aware of being able to sue a ham sandwich. I am just trying to resolve as much as possible up-front, for both of our sakes. We are entering our "golden years" and do not want to have to look over our shoulders at every turn. You can never bank on human nature. Heck, there are criminals suing victims for their own injuries during the commitment of a crime and winning millions.

CarolinaCruzes · 10-13-2007, 08:39 AM

I would just make sure the you make full disclosure on items you are aware of. "As Is" still requires that you inform the buyer of any known issues.

Gretchen B · 10-13-2007, 11:33 AM

Around here, buyers of "as is" properties are encouraged to "conduct a thorough investigation of the property". In other words, in an "as is" situation the buyer had better have a really good home inspection. That doesn't mean that he can ask for repairs, but it does mean he's going into the contract fully aware of any hidden problems. This also protects the seller because the buyer had their chance to fully inspect the property. It then becomes an issue between the buyer and the home inspector if any "surprises" are discovered down the road.

Our AZ contracts have a boiler plate "As Is" addendum, which spells out EXACTLY what As Is means to both parties and basically frees the seller from future repairs or litigation. It's a great addendum. I wouldn't sell an "As Is" property without it!

DMenscha · 10-13-2007, 11:42 AM

I bought the home I live in as-is knowing what was wrong with it. I spent a fair amount of my youth as a journeyman carpenter, so none of the repairs bothered me. 7 years later, I have a new metal roof, new windows, a new deck and the kitchens next.

The previous owner's name was Harry (he was a painting contractor who built the home in 1988) I still find things around that he "built". We refer to them as "Oh Harrys"

In CA if the phrase "home is purchased as-is" you would have a defensible position. It happens quite a bit around here as we have homes on wells and septic systems, However you still have the obligation to disclose material facts that you are aware of to the buyer. But you knew that

chaz longue · 10-13-2007, 12:28 PM

Practice and Law vary greatly from state to state. And I'm not an attorney...(as I never tire of saying)

But I'd want a written waiver if the buyer is not going to conduct a professional property inspection. I ask buyer clients and buyer customers alike to sign a waiver if they suggest not having an inspection - and that (in my experience) causes the buyer to change his mind about not having an inspection. It seems to me I (the seller) would need the protection of having the buyer either hire an inspector or sign a waiver.

You also mention you're paying for the attorney. In my state, I'd be hoping this meant your attorney - the buyer would have a different attorney, and the seller wouldn't want to be speaking with, let alone paying for, the other parties attorney if possible. But if you're not in an "Attorney State" this might vary, of course. I'd also want to reimburse the purchaser for the appraisal rather than ordering it and writing my own cheque for it...but perhaps that's just me, acting in an abundance of caution.

Best of luck!
David Beckett

SassyGirl2 · 10-13-2007, 09:15 PM

Since I cannot zero in on just one person to thank for all the useful information, I must thank you all. All have given me much to think about.

It does seem to be a better business practice to allow the buyer to chose the appraiser and we reimburse. Didn't think of that one.

We are using our own attorney to draw up the contract/sell papers, not the buyer's attorney. A written waiver for inspections is a great idea that completely eluded me. My brain is in over load mode at this point - just trying to be careful, fair and to do what is right.

As for disclosure, which I failed to mention in my OP, that is a given. Especially for liability concern, I would never entertain selling my home without a disclosure. I strongly believe in CYA, if you will excuse the "french".

AGAIN, thank you all so very much for assisting me. Given me a lot of direction and food for thought. Keep up the good work.