Home Inspection Clause

How to write home inspection clauses when you are buying or selling Real Estate can make a difference between a deal maker or breaker. A typical home inspection clause by a Realtor is usually sufficient for average Home buyer or seller. But if you are sophisticated Real Estate Investor, you need to protect yourself with proper wording.

home inspection clause

  • What is the purpose of inspection clause?
  • Does a home inspection condition give a Home buyer a right to cancel the
    Purchase and sale agreement or the contract any time ?
  • Is the Property owners is entitled to a copy of the home inspection report if they want to share the cost of inspection?
  • If the report shows only minor problems, is the seller entitled to just fix the problems and ask the property buyer to complete the transaction?
  • What happens if the buyer does not obtain a home inspection at all and then tries to get out of the deal?
  • Who can be the home inspector?

In general, the ethics have indicated that when buyers are trying to satisfy any condition, including a home inspection condition, they must act honestly, reasonably and in good faith.

If you are buying then the following home inspection condition shall be in your contract

“This agreement is conditional upon the inspection of the property of the purchaser’s choice and expense, and receipt of a report satisfactory to him, in his sole and absolute discretion within ten banking days failing which this agreement becomes null and void”

Then you are not satisfied with the inspection report, then you can ask for the deposit to be returned without any deductions and sign mutual release at the same time.

As a result, many sellers try to remove the words “sole and absolute discretion” from home inspection condition clauses.

If you are selling and you must insert following wording to protect yourself by  Including additional language that if the amount to correct all deficiencies is less than $1,000, then the seller has the right to correct the deficiencies before closing or within thirty days and have the right to have a copy of inspection report. The inspection must be carried out by licensed or certified home inspector who carries error and omission insurance.

If you are a buyer and any change is made to the home inspection condition clause, you need to review the changes carefully with your Realtor and Real Estate lawyer as your rights might be impacted.

Sellers are not entitled to a copy of the inspection report unless it says so in the clause itself.

If the buyer does not conduct the home inspection at all, or perhaps brings in an
Un qualified person to conduct the inspection, then the buyer must remove this condition in writing within ten banking days as per original contract.

That is why any home inspection condition must be drafted carefully and approved by your Real Estate lawyer before the offer is being presented.

World Wealth Builders offers many unique, practical, out of the box real estate investor apprenticeships which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to http://www.WorldWealthBuilders.com/live.html
The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case

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home inspection clause

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7 Simple Repairs That Will Help Sell Your Home Faster

There’s a lot of competition in the housing market these days. Here are the top  secrets revealed by professional Real Estate Investor.

7 Simple Repairs That Will Help Sell Your Home Faster

7 Simple Repairs That Will Help Sell Your Home Faster

When you put your home up for sale, you’re bound to be up against several other similar listings. That’s why it is important to make sure your property is in a good state of repair so that it makes a good impression on potential buyers.

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Passive Income in Real Estate

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Passive income in Real Estate

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Rules of Success

Rules of success can be vary but the basics remain the same. “A journey of a thousand miles must begin with a single step.” Chinese philosopher Success RulesLao-tzu said this during the sixth century BC. It is fantastic advice, and it has lived through the ages. The fact that you are reading this — taking a step — mean you will have an advantage over your competitors.

Success Rules

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House Number (Tetraphobia) Can dictate property Prices

Tetraphobia is an aversion to or fear of the number. The house number can be goldmine or a curse depending upon the people you are dealing with. The superstitious is alive and well” says Navtaj Chandhoke, founder of one of the largest Canadian Professional Real Estate Investors group (PREIG) CanadaI have seen people paying premium for numbers like 3, 8, 786 and so on and you will be bidding war, no matter what the economy is doing compare to number 4, 13 and 666 which means you will have extremely difficult time to sell and at much lower price.”

Tetraphobia

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Stay Hungry Stay Foolish

 “And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle.”- Steve Jobs, founder of Apple Computer Inc

This articles is not about real estate. In fact it is the reproduction of a man’s 2005 address to Stanford University, one of the finest universities in America, and the man who made it has had as much, if not more, effect than anyone to further the technological world we now live and operate in.

stay hungry stay foolish

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Cover Letter for Real Estate Offer

Cover Letter for Real Estate Offer

Professional Real Estate Investors always submit a cover letter for real estate offer.  If you are unfamiliar with this strategy, since this step is not standard practice known to lot of Real Estate Professionals. The cover letter for real estate offer set the stage well for negotiation and helped get the deal done on mutually beneficial terms where it may educate the seller for all other benefits which are built in the offer.

cover letter for real estate offer

Super eight magical powers of a cover letter for real estate offer can strengthen and reinforce your offer, says, Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada, It is like a laser guided missile hitting right on its target and getting the job done.

A cover letter for real estate offer is a brief letter describing in plain English your liking, comparable and benefits for both parties. There are main eight reasons to use a cover letter, but the simple fact is that including a cover letter with your offer multiplies your chance of having that offer accepted.

There are multiple  purposes for submitting a cover letter with each offer, but here are super eight magical powers of this tool.

1. Professional serious offer –

Attaching a cover letter is not standard, so it will immediately make your offer stand out. In a hot market especially, it doesn’t hurt to be professional and unique (in a good way). They know that you have done your homework.

2. Personal touch 

Adding up few personal likings towards the property, the property sellers needs and asking the property sellers for all the benefits own the property can do magic, all the time. The cover letter will help establish a positive rapport with the property seller and set the tone for more harmonious negotiation.

3. Simple language 

The legal terminology can be hard to understand. Cover letter provides the comfort of simple language. A confused mind says no, so a cover letter which explains the terms of your offer in simple language can be a powerful tool.

4. Needs and Wants 

You can use your letter to let the vendor know what terms are important to you. If you need a certain closing date, seller financing, or multiple showings before closing, use your cover letter to make this known.

5. Benefits for the Sellers –

Perhaps the greatest benefit of the cover letter are that you can tell the vendor why your offer is the best one. Whether you are giving them the closing date, price, or other terms they want, be sure to emphasize how your offer meets their needs and create a win-win deal for each party.

6. Hard core facts –

Whether you want to mention comparables, point out some “scary” flaws in the property, or flatter the seller, you can use the cover letter to justify the price you are offering. If you are offering great terms and a slightly lower price, simply explaining this may have the vendor take your offer more seriously.

7. Capital gains deferral 

If you are interested in seller financing, you may wish to offer that option to the property seller including Capital deferral option. The cover letter is a perfect place to offer this opportunity.

8. Clear and Precise information 

As an investor you may be flexible on certain things such as the closing date which could be a point of contention with other buyers. If you can get the vendor let you know what is important to them, then you can use your creativity to create a win-win solution and get the deal done. Request open communication in your cover letter and try to use any info you receive to address the vendor’s needs throughout the negotiation process.

Use the cover letter every time, every one in the process will be impressed with the results. You can even include cover letters with your counteroffers to aid in the negotiation process. Even if you decided not to proceed with transaction, you know your professionalism that you delivered above and beyond. Professional Real Estate investors who have proper apprenticeship and mentoring can write a professional letter, but cover letter could make all the difference.

cover letter for real estate offer

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