Hope this helps.
Realtor, DRE# 01891274
Century 21 All Moves
FREE Monthly Newsletter: http://newsletter.davidnewhome.com
In a regular transaction the addendum should take precedence, and seller would pay for section 1 if the box that pertains to the Seller is checked.. In a short sale, all depends on lender's final approval. All costs can be negotiated, but they are not always approved by the bank. So, until you get written approval you may not know whether or not the bank would approve these repairs. Also in a short sale, usually the owner does not have money to contribute. Every short sale is different , the end result is what will be negotiated and approved by the lender.
Some times the buyer may have to cover some costs not approved by the lender such as contribution to the second, negotiation fees etc, or termite repairs, or back due HOA fees or all of them combined. If you have an FHA loan the lender may not approve that the buyer pays certain costs.. In a short sale, nothing is final until you have written approval from the lender, as the SSA addendum states ( I hope you have one).
Also for any legal matters in Real Estate, your realtor will be able to give you the answers by calling the CAR legal hotline, if he/she does not have direct access to a real estate attorney.
I would also suggest shopping around for a cheaper termite company. You can usually fax or email them a copy of your report and they can give you an estimate based on the other companies findings. I have seen a big difference from one company to another several times. Good luck.
So if the costs are well over $100 and the foreclosing lender is not willing to pay or reduce the purchase amount to make up for the costs, you might want to hit up the agents to contribute or pay for these expenses. Legally, at this point, you can walk away from this transaction and get your deposit back assuming you have an addendum that says that the seller will cover section1 because the terms of the purchase contract have changed and therefore, you really have no contract.
I am not a lawyer, but I have been doing short sales before the market crash and I was the first agent who did a short sale in West Irvine.
Good luck to you.
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END Transactions in our Brokerage. IN MY OPINION, there is NO benefit to the Seller or Buyer and only benefits the Agent. Also, NEVER use your RE Agent / Broker as your Lender or vice versa. Also, be careful when using Real Estate Broker-owned Escrow and Title Companies - they can be loads of trouble.
888-391-5245 Direct Cell