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Once an offer is accepted and escrow opens there is an initial period during which the buyer completes all inspections and investigations and the seller completes all legally required disclosures. The objective is to ensure that buyer has all the information regarding the land and improvements, condition of the property and needed repairs (if any), the natural hazard zones and environmental hazards affecting the property, soil conditions, availability of utilities, and any other material information that can affect the value of the property. The buyer is protected with a right to cancel if there are any surprises. As the buyer would have some idea regarding the forthcoming inspection/disclosure information at the time the offer to purchase is written, the buyer is expected to approve the property before expiration of this initial period and then the escrow will proceed towards close and transfer of ownership.
Buyer Inspections Overview Two most common inspections are home inspection and structural pest control (termite) inspection. A professional home inspector inspects the house from top to bottom. It is a non-destructive and visual inspection of roof, exterior/interior walls, heating/air conditioning, water heater, kitchen appliances, fireplace, plumbing, attic, garage, foundation, pool, spa, etc. The report provides information on any defects or damaged items. The structural pest control inspection reports (1) the areas where active infestation or infection is found and (2) the conditions likely to lead to infestation or infection. The Section (1) repairs need to be made as soon as possible Additional inspections, such as an appraisal or soil engineer report may be appropriate after the above inspections.
Seller Disclosures Overview The Transfer Disclosure Statement (TDS) is prepared by the seller and indicates the property features and if everything is operating properly. Other aspects such as known environmental hazards and homeowners association matters are also disclosed. The Supplementary Statutory Disclosure (SSD) contains a list of items that the seller discloses awareness of, such as, illegal controlled substance, near industrial use or federal/state ordnance location, death or insurance claims within past few years, etc. The Natural Hazard Disclosure (NHD) discloses whether the property is located In any of the six hazard zones such as Special Flood Hazard Area, Earthquake Fault Zone, etc. The seller also provides the buyer: the Combined Hazards Book, Residential Earthquake Hazards Report, and Lead disclosure (pre-1978 homes). Additional disclosures may be appropriate after above disclosures.
Role of the Professional Our Company’s Transactions Support System is intended to ensure that all the activities during the initial period after offer acceptance are performed smoothly and completed fully. We will ensure that all issues that come up are resolved promptly. |
