Many times buyers and sellers will negotiate some of the recommendations that come up at the engineer inspection. With in my experience the seller is responsible for termite treatment. A buyer will not get a mortgage without a clean termite certificate. The seller should take care of this issue, if they or you back out of the deal the situation will most likely acure on the next transaction. I'm hope you guys can come to a meeting of the minds.
Thanks very much for the clarification. I grew up in NY but didn't buy/sell anything there.
JMW709 - I would still submit that you are very much in the driver's seat. What Jean says about keeping your application fee and re-using it on another property is likely correct - just check with your lender to be sure.
Do what's best for you. For sure, regardless. But in this market I wouldn't let some stubborn seller push me around after termites are found. Granted, if I know that I'm making large on a great deal and am willing to eat the remediation, then the bottom line is always the bottom line.
But my inclination would be to be willing to walk away, put out a timeframe, and see where the chips fall. I assure you that both agents involved will freak out, knowing they are both at risk of losing their commissions, and start working to keep the deal alive. Funny how that works!
Keep in mind, some banks may need a termite certificate in order to give you a mortgage, so you may have to put up the money for the treatment prior to closing.
What is the point of getting an inspection if the seller isnt going to do what is recommend?
answer: Always remember just because you do an inspections when you are buying house it doens't mean Seller always agree to repair, fix, replace all things recommend to be repair, replace in inspections report. You as a Buyer has a time frame(contingency period) at certain time to decide to continue,negociate the deal or backing out from the deal after you do any inspections and if you don't feel comfortable with any major issues that might raise after any inspections(Always remember having inspections means good for your protection "Know What you are Buying") Since every house will have "Minor or Major" issues so you should asked your self first Are you comfortable with all issues on your inspections report? No matter Seller will or will not fix the issues!!! if Yes ....everything still could be negociated within the time frame, if No ...move on look another house and you might only loose your inspections cost...its Fair..
Termite Treatment- Who should pay?
Mostlikely the Seller do the treatment anyway after they know that their house need to be cured, However Seller have a right to refuse to repair, to replace, to fix anything after any inspections.
Its depend on what you agree if you agree to buy it in As-Is conditions, at fairly Price and you feel comfortable. Go for it !!! Fix it.
If not try to consult with your agent/attorney to negociate with Seller to fix it or back out the deal get your deposit back ...move on for other property
No big deal if you already signed and do your mortgage application process you can start over look for another house and ussualy the mortgage broker or lender they don't charge new applications fee if you using the same lender. unless if you already have an appraisal performed that might make you loose your appraisal fee.
Thank you and Good Luck for everything...
The responsibility of the termite inspection is typically outlined on your contract. It is usually a inspection that takes place anytime before closing, but would not happen before the contract is fully executed. The termite inspection is an inspection that is paid for by the buyer and then if repairs are needed the seller would pay for those up to a certain cost. This repair amount paid for by the buyer is usually in the amount of $1,000 or $2,000.
There should be a clause in your contact that going into more detail about the termite inspection. Before I could give you my opinion on if you should back out I would recommend you find out the contractual language on your contract.
The only mistake you've made to this point is perhaps starting the mortgage process (loan application) before the conclusion of attorney review (the deal isn't a deal yet). Not too bad though and don't beat yourself up over it.
You can totally walk out now if you like. The only thing that you'll lose is the money you spent on an inspection. I suppose that you might be out some application fee to the mortgage company but you'd have to check on that.
The seller is in a WEAK position here. No one else is going to step up to buy their home right now anytime soon, and they have the obligation to add to their Sellers Disclosure that they have a known Termite Issue.
Sure you *could* opt to eat the money to take care of the termite remediation. But unless you are buying that home at well under market - why would you? Put the screws to the Seller through your attorney. Your attorney can send them a "time is of the essence" letter about this.
Right now the sellers pride is in the way. It's time to play a bit of hardball and force them to A) Fix it, B) Give you cash at closing so that you fix it C) realize that you will WALK if they continue to not play ball.
Oh ... and don't let your agent start getting in the way now. If he/she isn't fully supportive of your position then they are caring more about losing their commission than their responsibilities to you. In NY and NJ, once the lawyers get involved the agent(s) have very little to do with the process anymore.
Best of luck and please do ask away. Remember - that home is an investment first, and a place to live second! You'll need to sell it someday, and that termite disclosure and subsequent remediation will be yours down the road.
Speak with your attorney...seller has no choice here.