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Ok now I have a question. We had been presented a contract which we accepted with no counter. It is the standard Realtor contract, as-is, with 10 day inspection period. We have the paper which states $ is in escrow. House inspection has been done and report received. There were a couple things on there but they aren't major, mostly calk and paint type things. However, if one doesn't understand construction things, a couple of those might look way more serious than they are. We fixed (without them asking) cracks of calking, bleached and repainted. DH has licenses and is legal to do these things.
Previously, neighbor had come out and acted like an idiot, and this problem was the only thing our buyer had a problem with. I happened to be there during the inspecton and buyer asked me about this fellow, and I told him what I knew about why he was upset (he didn't not get along with our previous tenant) and how it was when we lived there (quiet and not problematic). I believe I defused the situation, at least I hope.
Anyway, we are now on day 6. Inspection report arrived 3 days ago. I asked our agent if buyer is accepting the house and she said their agent forwarded the inspection report without any information if there is acceptance or asking for repairs, just no further info. Because of the neighbor issue, our agent said she didn't want to push the issue and was just waiting to hear.
Today our agent emailed that their law firm has sent them notice that buyer is now their client and they would be representing them at closing. Buyer is getting mortgage, and there is apparently no problem with the loan, except we had to extend closing date by 6 days for them so they could get it done. I realize appraisal has not been done yet, but we all feel it should pass easily.
I will read our contract line by line but I'm confused, doesn't the buyer have to actually notify us, isn't there some form or something they sign saying they accept? I think there's one asking for repairs (which we're already doing anyway), but I feel like we're in limbo just not knowing for sure. Our agent is really laid back, the "everything's going to be fine" type which is driving me crazy. She forgets to forward stuff to me...I still don't have that paper that says what the bottom line $ amount will be... so I'm not likely to get an answer from her.
Entirely state dependent. And your title company can help you with a net sheet.
In Colorado, where I practice, we let deadlines pass without an objection notice or a word from the other side. The contract progresses until someone says "stop" I object to...
So in your state, you'd consider it an accepted contract unless someone says it's not. Seems to be a loose way of operating. Considering that we had a couple pages of small print and signatures due to a $20/yr homeowner's association in the area! Then the whole contract (in my mind at least) sits in limbo because we get no information or paper? I know, I just need to chill. See, I'm picturing this couple running around trying to see if they can find another place before the 10 days is up. It would be nice to know for sure.
I'm in Florida and it's common in my area to just let the inspection period run out if there are no demands to be made. I've never delivered a signed document saying we were proceeding before the inspection period expired.
I will read our contract line by line but I'm confused, doesn't the buyer have to actually notify us, isn't there some form or something they sign saying they accept?
Typically, when you have a binding contract there is no need for the Buyer to give any further notice that the contract is still valid. When there are contingencies in the contract, such as an inspection contingency, it is up to them to notify you if something is NOT to their liking and that they want changes made to the contract (including backing out). There is usually a time deadline for such notification--in your case 10 days--otherwise the contract remains valid as written.
Since they have retained an attorney to represent them at the closing, it sounds like they intend to move forward. Although they may legally still have an option up until the 10 days are up, it sounds like you should simply try to relax.
Thank you all. Yep, unfortunately, I'm not sure relax is in my DNA! I did just sit and read through the contract line for line (I know should have done that before I signed and not just skimmed) and apparently you are right. Buyer has to notify in writing if NOT accepting, otherwise it's just assumed to be going forward with no requests - I guess that's what it means since acceptance isn't even mentioned. Wouldn't you think it's just common courtesy to at least tell the agents something verbally? Are people all so laid back that they just don't care to know things like this?
I find it strange that the appraisal hasn't been done yet. How does the buyer get a mortgage or know that the home is reasonably priced?
Cause the lender haven't ordered one yet. Contract just went through inspection period and it appears to be fine...now on to the mortgage contingency part.
I find it strange that the appraisal hasn't been done yet. How does the buyer get a mortgage or know that the home is reasonably priced?
Yeah, in my area the lender never orders the appraisal until the inspection is done and worked out, unless specifically instructed to do so.
And my state actually has a spot to mark on the inspection form that says basically all is well and we want to move forward. So agents often mark that box if the buyer isn't asking for anything, and send it over so everyone isn't waiting on pins and needles for the inspection period to run out. But if they don't do so, then a lack of response by the deadline is acceptance of the house as is.
If I read this right, the inspection period has not even run yet. It's only day six, they have 10 days to respond requesting repairs.
If they do that, you can agree, refuse, or negotiate an alternative. Refusing or negotiating alternatives may have consequences, like the buy can walk away. But there is usually some room to negotiate if the buyer is asking for things that are unreasonable or excessive.
Couple other notes.... it's unusual in our area, for the buyer's agent to have sent you the complete report. We don't do that here, and most sellers do not want to see it. Any defect presented in the report might now be a disclosure issue for you with any future buyers. In our area, the buyer would typically send to you only those excerpts from the report summary that they are asking you to fix.
Appraisal is not typically ordered until after the inspection period, because there is a cost to appraisal, and buyers don't ordinarily want to pay that until the house passes inspection and they still wish to go forward. Some exceptions happen though, especially in the current climate where appraisals take many weeks due to appraiser shortages. If they're willing to risk the cost of the appraisal, smart buyers, and smart lenders, order them as soon as is possible to avoid delays.
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