Charleston, SC Posts

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Buyer's Complete satisfaction of...

Ok, seriously...when an agent includes the Contingency of Buyer's complete satisfaction of financing, inspection, CL100 and appraisel...what exactly does that mean?  To me, it sounds like they are looking for an out.  And how do I help my seller counter that?  You are either approved or you are not.  The CL-100 is either clear or not and if it's not, the seller has to fix it for you or the next buyer.  The appraisel is what it is. And the inspection is going to to be clearly defined.  Either there are items for a seller to fix or there is not. Our contract specifically states that the seller is responsible for making HVAC, electrical, plumbing, making the roof free of leaks, addressing structural issues and any wood rot, or environmental issues.  If the buyer doesn't like the way the shoemould is laid in the house, they can back out of the contract.  Come on.  We are not in the position of turning away offers so the seller is going to counter it, but I cannot leave the seller open ended with this particular language.  How would you handle it?

Michele Reneau, ABR, GRI, CRS

www.CharlestonRelocationExperts.com

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Comment balloon 7 commentsMichele Reneau • June 10 2008 09:26AM

Comments

Your right Michele.  This is the same issue I brought up in a previous blog entitled "Home Inspection Satisfactory to Buyer"

Our new GM, Jim Reese, told me that if you have the buyer the phrases you mentioned that are put in the contingency section at the end helps protect the buyer, but you don't want it in there if you have the seller. He told me that a magistrate recently ruled in the favor of the buyer because the last thing in the contract trumps the former things in the contract. 

If I have the seller and the buyer wants a contingency satisfactory to home inspection I include the words, "in accordance with paragraph 19" (I think that is the right paragraph) which talks about the seller being only responsible for structural issues and that all should be in working condition.

Call Jim, he can give you more clerification!

Posted by Michael Johnson, Metro Charleston SC (Carolina One Real Estate) almost 10 years ago

Thanks Michael. I will add the additionally phrase which will clarify the inspection issue. That is perfect and I can totally relax about that. But what do you make of a satisafactory CL100, appraisel and financing? Should I cite those paragraphs as well?  Seems a little overboard, eh?

Posted by Michele Reneau, Realtor, GRI ~ Charleston, SC Relocation Experts Team (Certified Staging Professional (CSP) Elite Instructor) almost 10 years ago

I'm not sure what a satisfactory CL100 is!  It is either a clear CL100 or it is not. I've put the phrase contingent upon clear CL100 but never satisfactory CL100.

It seems like that would also pertain to appraisal and financing.  The house either appraises or it doesn't.  The buyer either get financing or it doesn't. 

I would ask the agent why they put that in the contract and if they can explain what they mean by that.  There is really no reason to put that in contingencies because it already states that in the contract.  If they insist on keeping it in they I would probably cite those paragraphs as well. 

The word satisfactory is way to ambiguous to just throw around.

Posted by Michael Johnson, Metro Charleston SC (Carolina One Real Estate) almost 10 years ago

I agree on ALL of the above.  And satisfactory is way too vague. I did ask the agent and basically what I gathered is that she didn't realize what she was writing.  She said we could cross it out and she would discuss with the buyers. Hopefully, we can get this thing ratified. :)

Posted by Michele Reneau, Realtor, GRI ~ Charleston, SC Relocation Experts Team (Certified Staging Professional (CSP) Elite Instructor) almost 10 years ago

Michele, I'd call that "weasel clauses" where the buyer can walk anytime he wants to.  Just nail it down and protect the seller.

Posted by Barbara S. Duncan, GRI, e-PRO, Executive Broker, Searcy AR (RE/MAX Advantage) almost 10 years ago

Michele,

I'm with all the others on the weasel clauses. Scratch the "satisfactory." Too vague and subjective.

BTW, what is a CL100? We don't have such a term in the DC area.

Posted by Ed Schneider, Washington DC Real Estate Specialist (Evers & Co. Real Estate Inc.) almost 10 years ago

Ed-CL-100 is a SC Wood Infestation Report...aka Termite letter.  CL-100 is the name of the form and I guess the term has always stuck.

 

Posted by Michele Reneau, Realtor, GRI ~ Charleston, SC Relocation Experts Team (Certified Staging Professional (CSP) Elite Instructor) almost 10 years ago

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