We continue to see issues with poorly written . Most disputes involve questions as to what exactly the buyer is asking to be repaired or who will select the service provider or whether a licensed contractor is required for that repair. These matters can easily be avoided by spending a little extra time and thought in drafting the addenda and by including the specific terms that your client requests.
When you draft the addendum please think of the following:
- What exactly is it the buyer is requesting to be repaired or should it be replaced?
- How do you identify that repair/replacement so it is clearly understood by the seller?
- Who will select the vendor to repair/replace the item?
- Does the buyer mind if the item is repaired by the seller himself? Should the repair/replacement be done by a licensed and bonded contractor?
- Who is paying for the repair/replacement?
- Is there a right to reinspect after completion and who pays for that?
Here is an example of a poorly written clause that I often see:
“Seller to fix item 2 and 3 on inspection report.”
A better way to write the clause would be:
“Seller to repair and pay for the repair of the front right seal damage to the house foundation as shown in Item 2 of the Clark’s Pest Control CL-100 dated July 1, 2015. All repairs to be made by a licensed and bonded contractor selected by the seller and approved by buyer. After completion, the repair to be reinspected at buyer’s cost and completed to the satisfaction of Clark’s Pest Control.”
I hope this will help you avoid disputes pertaining to repair in the future.