Angel51, Home Seller in Columbus, NJ

We are the sellers. The buyers are having a home inspection on the last day of attorney review. Does that matter or not?

Asked by Angel51, Columbus, NJ Fri Sep 30, 2011

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14
John Sacktig, Agent, New Jersey, NJ
Fri Sep 30, 2011
Hi Angel,

It *may* matter, yes.

I am not an attorney, but from experience, this is my take on it...

Most contracts have the built in inspection clause giving the buyer options related to the home inspection.

Depending upon the language written into the contract as to the clause, The buyer can cancel the contract based upon the results of the inspection unless you agree to remediate the issues, this is where it gets sticky.. also depending upon the clause and the terms.

If the inspection is done before attorney review is ended and the client wants to cancel, then the buyer can cancel the contract per the rules of attorney review where either can cancel the contract during this period with no explanation necessary.

I would stop it from happening..
2 votes
Sandra O'Kee…, Agent, Bridgewater, NJ
Fri Sep 30, 2011
If the buyer does not like the results of the home inspection, and you are still in attorney review, they can cancel the contract without having to negotiate any potential repairs or even inform you about the findings of the inspection. At the same time, you can still cancel your contract as well and they might be wasting the considerable expense of the inspection. Depending on the results, it could put either party at a disadvantage. I would recommend the inspection not be allowed to occur until after attorney review. And finally, one never knows when attorney will review will end, until it does. You don't know it's the last day until after the fact. GOOD LUCK!
1 vote
James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Sat Oct 1, 2011
Hi Angel51,
It shouldn't matter to you, unless you are selling the home "as-is" and are not planning on fixing any deficiencies uncovered by said inspection. If you are selling as-is, then it is my understanding the last day the buyer can cancel the contract without prejudice is during the attorney review period. I daresay even selling the property as-is, you have granted the buyer the right to an inspection, so it is in their interest to do it while they can terminate the offer in that period. This is my opinion, and not to be construed as legal advice!
Best of luck for a smooth transaction...

Jim
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Sat Oct 1, 2011
I agree with Diane. Generally buyers wait until attorney review is concluded - to be sure terms are agreed to -before spending money on inspection and loan application. But if they want to get a head start all the better.

Good luck with your transaction - my advice - try to keep it on track and reach a successful outcome.

Best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
Web Reference:  http://www.feenick.com
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Sat Oct 1, 2011
I agree with Diane. Generally buyers wait until attorney review is concluded - to be sure terms are agreed to -before spending money on inspection and loan application. But if they want to get a head start all the better.

Good luck with your transaction - my advice - try to keep it on track and reach a successful outcome.

Best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
Web Reference:  http://www.feenick.com
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Sat Oct 1, 2011
I agree with Diane. Generally buyers wait until attorney review is concluded - to be sure terms are agreed to -before spending money on inspection and loan application. But if they want to get a head start all the better.

Good luck with your transaction - my advice - try to keep it on track and reach a successful outcome.

Best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
Web Reference:  http://www.feenick.com
0 votes
Diane Glander, Agent, Spring Lake, NJ
Fri Sep 30, 2011
I wouldn't worry about it. If the buyers are going to get out of the deal because of a bad inspection report, they can do it during attorney review, or after. The bottom line is you cannot make someone buy your house. The sooner you know who you are dealing with, the better for you.
Web Reference:  http://www.dianeglander.com
0 votes
Abu Musa, Agent, New York, NY
Fri Sep 30, 2011
Dear Angel51,
Yes, this is matter buyer has not sign the contract yet.God forbit if buyer finds negetive inspection report buyer could back off.But I wish you good luck.
0 votes
Susan A Steb…, Agent, Hamilton Square, NJ
Fri Sep 30, 2011
I agree with Mary and Cynthia. A home inspection is usually done once attorney review is ended since either party may cancel the contract during attorney review and the buyer would be out the cost of the inspection. They may want to know if there are any major issues in the early stages especially if you are selling your home in 'as is' condition. If the inspection reveals a serious problem the buyer can cancel the purchase as long as they stay within the time frame stated in the contract. Talk to your agent or attorney and be sure to stay within all time frames if you need to respond to an issue.
0 votes
Cynthia Freu…, Agent, Edison, NJ
Fri Sep 30, 2011
I would say it is a show of very good faith. What Mary Petti said is correct, and most would not extend themselves with inspection costs until they were out of attorney review. These people want the house!
(The days that are counted in the contract do not begin until the contract is binding, which is when it is out of review. )
0 votes
Mary Petti, Agent, Edison, NJ
Fri Sep 30, 2011
It only matters to the buyer because they are paying for the inspection. If you as a seller decided to cancel the contract before the end of attorney review, the buyer is out the inspection $$.

Read your contract...buyer has a time frame to perform an inspection. I usually don't think it's a good idea to until AR is completed for the above reason, , BUT buyer or seller can void contract after inspection even after AR is concluded if certain contractual stipulations regarding inspections aren't met. .

If the closing is a fast closing (30 -45 days or so), then sometimes it's smarter to just get everything done ASAP.

If yu are selling the house AS IS, then it's smart for the buyer to to the inspection ASAP also, so they can see if there are problems so bad that they might want to cancel the contract.

Speak to your agent too, to have him/her explain the process and the various scenarios to you.
0 votes
Paula & Barb…, Agent, Hamilton, NJ
Fri Sep 30, 2011
Yes it matters if you are not going to make any repairs to your property. In the state of NJ there is a clause in the contract of sale stating "the buyer has a certain amount of time (12 days) to conduct their home inspections and ask for any repairs to be done by the Seller. If the Buyer asks for the repairs and the Seller refuses to make the repairs, either party may cancel the contract. I am not an attorney either. Good Luck with your contract.
0 votes
Jane Shebroe, Other Pro, Caldwell, ID
Fri Sep 30, 2011
Hi Angel,

Attorney review doesn't always end in the said 3 days, it only ends when both attorneys virtually shake hands and agree on all terms. The buyer's attorney might want to wait for the inspection report before signing off on everything if he/she knows about the pending imnspection.

Jane
http://www.RealTerrific.com
0 votes
Joe Montenig…, Agent, Sewell, NJ
Fri Sep 30, 2011
No, it doesn't matter. Why would it?
Web Reference:  http://Hometeamnj.com/blog
0 votes
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