Paragraph 9D of the Central Carolina REALTORS® Association contract contains a little known provision that has a great impact on FHA and VA closings. The provision holds that if the buyer uses FHA or VA financing, the property may be inspected by an appraiser appointed by the lender. This inspection is not subject to the due diligence time limitations or provisions set forth in paragraph 9 or 10. Therefore, if the appraiser identifies repairs that must be made as a condition of loan approval the seller can elect to make the repairs and close. If the seller elects not to make the repairs the buyer then has the option of paying for and completing the repairs themselves prior to closing or voiding the contract. If the contract is voided by the buyer, earnest money is to be released to Buyer. It is important to understand that even if the due diligence period is completed and the repairs have been negotiated and completed, the inspector can identify other items that must be repaired in order to close. If the seller refuses to make the repairs the buyer can terminate the contract.
Blair Cato is proud to announce that Chris Brown and Stewart James formerly of Babb & Brown have joined our firm and will be heading our new Greenville office. Our office will be opening next week and will be located at 406 East Butler Road in Mauldin.
Photo by Todd Chandler 