Termite repairs are negotiable, it really depends on what your contract says. If you agreed upon "as is" and did not state in the contract that the seller pays for termite repairs, then the offer does not have to pay any of the termite repairs,
Feel free to contact me anytime via phone/text at (310) 717-1321 or email at JamieTian@RodeoRE.com if there is anything else I can assist with!
The answer to the question is that you get what you negotiate,usually the seller will pay ,but they sometimes put a cap on the cost of the repairs ,since you bought the house as is ,ii is nice that the seller is willing to pay $1700.00 .He is not required to pay anything based on your contract ,good luck !
In California we do not really have "as is" sales.
The correct term is "as disclosed".
Providing the seller discloses all material facts about the home and buyer still agrees to move on with the sale, then the home is truly being sold "as disclosed".
Now, termite work can be tricky, the seller may not have known all the termite damage until the inspection was completed. It would be nice for the seller to pay for tenting and repairs recommended by the termite company.
Termite work should always be addressed as a separate item in the purchase agreement, because the damage can be hidden, and not revealed until the inspection is done.
If you want this home and are using financing and the seller is only willing to pay part of the cost, you have to dig in your pocket to pay the balance. If you do this you can try and reduce the purchase price by the amount you pay out of pocket for the termite repairs.
Best of Luck to You!!!!
Kawain Payne, Realtor
So then someone will have to pay. Keep in mind agreeing to buy a property "as is" is not valid in CA unless the seller has disclosed all of the imperfections. Once the information has been made known you have 3 days to accept the house as it is, make a counter offer or walk away.
Being that the purchase price was negotiated "as is" and most homes have termites. It may be a reasonable offer for the seller to pay the $1700.
Also you are free to find someone who will do the work for less.
The bottom line is that being that you were not aware of the termite problem at the time of the offer, you can counter offer for the seller to pay that. That is what CA law seems to think is fair. The seller though is free to refuse and your recourse is to to walk . The seller in this case would not be entitled to keep your deposit nor would they be entitled to any damages.
Is there not Realtor involved?
If you are at the point where you are negotiating the inspection issues, you likely agreed and signed the contract to purchase the home "AS IS". If you are still within this period, you don't "have" to purchase the property if you are uncomfortable with the issues uncovered, but "AS IS" means that you knew upfront that the seller was not going to fix any problems.
Typically, regardless of what you find, it's your responsibility to repair it - it doesn't matter if the issues are related to safety, foundation problems, structrual issues, or pests, etc. This is especially true with REO properties - they rarely if ever budge on this. I'm guessing you are purchasing this from a private owner - as a bank/lender would be unlikely to haggle with you and split the cost of termite mitigation.
Now, would a seller be wise to compromise on this in order to ultimately get their property sold? The answer depends on A. the severity of the issue and the likilihood that they will ultimately be able to find a buyer willing to deal with the problem, B. the cost of mitigating the problem, C. the likilihood that financing can be obtained in light of the problem, and D. whether the cost to rectify the issue is already factored into the selling price.
The seller doesn't "have" to fix anything for you. They can agreed to fix everything, some things, or absolutely nothing. The ball is in your court whether or not to agree, request additional concessions/repairs, or to walk away and find something else depending on their answer.
Hope that helps!
There is a section that outlines this information in the California Residential Purchase agreement.
Actually it's a point of "negotiations" the seller can pay all, part...or none at all, depending upon what you agreed to.
Please contact your Realtor so that you can go over your contract and look at what was agreed to.
No home purchase is really "as is." These things should have been clarified in your original accepted purchase agreement.
In your accepted purchase agreement:
- Did buyer request termite report paid by Seller?
- In accepted purchase agreement did buyer state that termite work paid for by Seller(no limit in cost)?
- Was termite inspection or termite repair/replacement costs waived?
- Did seller stipulate in accepted purchase agreement that would only maximum of $1,700- for repairs.
Review your accepted purchase agreement and escrow instructions. Review if termite report stipulated in agreement and who is to pay for what. Your Realtor should be able to interpret who is responsible for termite report and repair/replacement costs. Everything should be in writing before escrow was opened. Hopefully this helps.
Gail Mercedes Cole
EXP Realty Marina del Rey
Dave Ockun, below, stated it clearly.
If there is no such stipulation in the contract, none of the parties are responsible for repairs. You may end up paying for most or everything if you want the home and are getting a loan. Or, you could just walk away. You're limited as to time, your investigation period, also stipulated in the purchase offer.
The seller appears to be making a concession, but, talk to your agent. At this point, you have options. Some you may not like.
Everything starts with planning.
Hope everyone works out.
Coldwell Banker Residential
Tel. (319) 463-8088
CA BRE #01921046
Good luck and have a great day,
Heather Paul, Broker Associate, Realtor
You may want to get another bid from another company to get your costs down.
Termite tenting and repair is a negotiable item. In some cases, the Seller won't pay for it at all and if it is required by your lender, the Buyer would need to pay for it and have the work done before the close of escrow.
Revert back to your contract.