2. Consider the Situation
• Clients needs, wishes, and expectations
• Whether the circumstances dictate a
contingency or covenent
• The audience
3. USTs, Radon, Sewer ‘oh my’
• Buyer at Buyer’s sole expense, during the
inspection period, reserves the right to
conduct a sewer video inspection, radon
test, and search of the property for any
and all USTs and collect soil samples.
– If a UST is found, Seller, at Seller’s sole
expense, to decommision the tank to DEQ
standards by a DEQ certified vendor and pay
the DEQ closure letter fee.
4. Buyer’s Repair Addendum, Rep B
Buyer hereby removes the inspection contingency and
proceeds to close in exchange for the following repairs to
be completed by Seller, at Seller’s sole expense, prior to
close of escrow:
1. List repairs….. Be specific regarding license/bonding if
necessary on a per-repair basis.
2. Re-caulk bathtub between floor and tub (does this really
need to be a licensed/bonded contractor? Maybe yes,
maybe no.
5. Buyer’s Repair Addendum, Rep S
• Scenario:
– BRA based on home inspection
– Seller to repair the following furnace defects
– _____ ______ ______ ______
– Seller signs BRA agreeing to repairs
– Seller’s licensed/bonded HVAC guy says ‘no problem
w/furnace’
6. Repair Addendum, contd. Rep S
• Issue:
– Seller all ready agreed to repairs that (according to contractor)
are unwarranted… Buyer believes his home inspector even
though Specialist always trumps Generalist… hmmmm
– What should have happened (to protect seller from this
conundrum)? Seller counters BRA:
• Seller to have licensed/bonded contractor inspect furnace
regarding issues raised by Buyer and will make any required
repairs… [if not able to estimate cost… up to $...]
7. Lender Required Repairs, Rep S
• Does the Seller occupy the property?
– Can/will the Seller pay for lender required
repairs?
– Buyer shall complete the following repairs at
Buyer’s sole expense:
– 1.
– 2.
– 3.
8. Lender Required Repairs, Contd.
All repairs shall be completed by a licensed, bonded,
insured contractor in good standing. Upon completion
buyer to pay all amounts due contractor for services
rendered and shall provide a copy of the paid receipts to
seller. Buyer assumes full responsibility and liability for any
injuries or damage to the property due to contractor or
subcontractor’s conduct and agrees to indemnify and hold
harmless seller against any claims or related costs or fees.
Buyer shall arrange for Buyer’s agent to provide access to
the property and shall monitor the activity to ensure the
property is secured.
9. Appraisal, Rep Seller
• Appraisal comes in super low (CMA $500k; Appraisal
$440k
• Issue: Sale agreement contains 2 BD default period
within parties may mutually resolve or terminate
– What happens if 2 BD go by?
Insert Clause: If appraisal comes in below purchase price, parties
agree to extend timeline under sale agreement secion 3.2 to allow
for appraisal review. (amending default timeline is cleaner and
easier)
10. Appraisal – Buyer Wants to Pay
• Parties agree to amend PP to $___. In the event property
does not appraise for $___, Buyer shall pay the difference
between the appraised value and the purchase price.
• Note: If Buyer does not step up and pay the difference,
Buyer’s only risk is the possible loss of EM.
11. Contingent Sale, Rep Buyer
• ‘Pending’ rather than ‘bumpable’
– Purchase subject to sale of Buyer’s current residence
located at 1234 Hip ST, Portland, OR currently under
contract, through inspection (if you can make this
claim), and due to close on (date).
12. Remove Personal Property, Rep B
• Scenario:
– Seller is “hoarder” – Buyer wants to ensure that the
persona property is removed prior by
closing/possession date
• Address in sale agreement or repair addendum
– Typically addressed in a covenenant , giving
right to Buyer to pursue damages if Seller fails
to comply
– If Seller is to remain post-closing can address
with Post Occ Doc
– Possible to offer incentive if it seems warranted
13. Non DEQ Certified Woodstoves, Rep B
• Seller at Seller’s sole expense, prior to close of
escrow, shall remove all components and
remnants of the non DEQ certified
woodstove/insert (including but not limited to the
flue, chimney, chimney box), appropriately cap
the existing flu opening, repair any collateral
damage, remove any debris and restore the
property to a finished condition in a workman
like manner.
14. Existing Easements, Rep B
• [Covenant] Seller to provide Buyer for Buyer’s
satisfactory review the following documents:
• [Contingency] This purchase is contingent upon
Seller providing Buyer for Buyer’s satisfactory
review the following documents:
– Copy of recorded easement
– Copy of maintenance agreement
– Copy of deed defining the scope of the easement
15. Easements, Cont. Rep B
• Note: If easement is to be created… must do so prior to
closing or obligation merges (disappears) when deed is
recorded.
• Seller at Seller’s sole expense, shall obtain a maintenance
agreement with the owner of lot… (serviant tenant) within
(10) BD of signing this agreement. The maintenance
agreement shall be subject to Buyer’s satisfaction and
Buyer’s attorney’s satisfactory review and approval within
(5) BD of receipt. The maintenance agreement shall include
a detailed description of the parties’ rights, responsibilities
and remedies. Buyer agrees to cooperate and assist Seller
in defining the appropriate terms.
16. Non Refundable Earnest Money
Scenario: Rep Seller and Seller wants EM immediately released
• The release of EM should be in consideration of something (i.e., and
extended inspection period):
• In consideration for [some benefit afforded Buyer], Buyer
immediately releases to Seller $__________ in the form of non-
refundable funds.
