Tip 9-2012: Termite, Well and Septic Reports for "Short Sales"
In a normal transaction, the listing realtor knows to order these reports within thirty days of the closing. The selling realtor is also aware of this requirement, so they too are looking to receive the reports for their Purchaser. But what happens if the transaction is not normal? In other words, what happens if the the transaction is either a short sale or an REO purchase?
With a short sale, there is the uncertainty of short sale lender approval. Also, the parties realize that the Seller usually has no money to spend for termite treatment or well chlorination. Nevertheless, the lender and/or the Purchaser of a short sale property may still expect these reports prior to settlement.
Accordingly, as the Listing Realtor, do not forget to order these inspections prior to the scheduled closing date. If significant problems are found, then there is time to correct the problems and to determine if the short sale lender will pay anything towards the problem. Even if the short sale lender will not contribute (which is usually the case,) there is still sufficient opportunity to resolve the problem within the time limit required by the short sale lender to close. Next week's tip will discuss the same issues with REO properties.
Please contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions. Thanks for allowing us to send you these tips.
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William D. Tucker, III
Charlottesville 434-973-7474 | Lake Monticello 434-589-3636