Although sellers are encouraged to prepare their property for sale and to take the age and condition of their property into full account in the pricing of the property, there may be instances where defects are discovered that a buyer will want to require the seller to agree to correct in order to be satisfied to move forward with the transaction and not exercise the Due Diligence right of termination. Again, however, a high Due Diligence Fee makes that negotiation more difficult for a buyer. c) Review and consider the “Buyer’s Due Diligence Inspections and Services Disclosure”. HPW provides a rather comprehensive disclosure of matters that may be of concern to Buyers and deserve further investigation during the Due Diligence Period. This disclosure also provides contact information for obtaining further information about a wide variety of important topics and you should request and review this form if it has not been already provided to you. d) The Due Diligence Request and Agreement form and the Agreement to Amend Contract form can be used during the Due Diligence Period to negotiate and agree upon additional terms or changes in the terms of the contract. Any requests for actions to be taken by a seller, such as correction of defects in the Property, and any further negotiation of the terms of the contract should be completed, and any further agreements should be documented in writing, before the expiration of the Due Diligence Period. Sellers are more reticent to agree to such requests in a “Seller’s Market”. 8. For any Property that is subject to any restrictive covenants or private road maintenance agreements or is controlled by an Owners’ Association, buyers should carefully review the terms of all restrictive covenants or similar recorded declarations and should review and confirm the information contained in the Residential Property and Owners’ Association Disclosure Statement provided by the seller. This Disclosure Statement should be provided in all non-exempted transactions and contains information about the condition of the Property and about any Owner's Association that controls any aspect of the Property. Some owners choose to make “No Representation” about such matters. Certain transactions are exempt from this disclosure requirement. Before or during the Due Diligence Period, Buyers should conduct inspections as mentioned above and should independently verify all information contained in such Disclosure and investigate all restrictive covenants, including any amendments thereto obtained from their Closing Attorney, as well as all aspects of the operation of any Owner’s Association that are of concern to them. The information on this form is not warranted by seller and is provided only to the best of seller’s knowledge. Many sellers are not familiar with the operations, budget or duties of their Owners’ Association and with any restrictive covenants or amendments. 9. Obtain and Review a New Survey During the Due Diligence Period. Except for condominiums, a new survey should be obtained for every real estate purchase and Owners’ Title Insurance obtained at Closing. Reviewing the survey with the Closing Attorney for title issues involving easements, rights-of-way, set-backs, encroachments or other title issues, as well as for any impervious surface restrictions is important. The seller must be able to convey clear, marketable and insurable title as described in the contract. However, this review should absolutely be during the Due Diligence Period if any additions or adjacent improvements are contemplated, in case they would be prohibited, and a termination of the contract is necessary. 10. Reasonable access to the Property by appointment must be provided for buyers through the time of Closing. This access includes the obligation to have all existing utilities turned on to enable various inspections.
4
Made with FlippingBook Digital Publishing Software