Tell me what's wrong, addendum, doug turner response

----- Reply message ----From: "Doug Turner" <dbturner@fuse.net> Date: Sun, Aug 4, 2013 9:34 am Subject: KAREN'S TIP: Tell Me What's Wrong, Collect Sweet Reward To: "'Karen'" <yourtrustedsource@gmail.com> Hi Karen, Regarding your e-mail, I see a number of issues with the attached addendum: 1.) Overall, there is an issue with the entire document. Judging from the context of it, it is meant to be a post-inspection addendum. As such, the agent has written it on the wrong addendum form (it should be written on the “Post-Inspection Agreement” form that has the proper post-inspection wording on it – “The undersigned Buyer(s), having completed all inspections of the real property known as _____, (Real Estate) hereby notifies Seller of the following defects in the Real Estate and requests Seller to make the repairs described below. Buyer has included relevant sections of the inspection report(s) as required in the Contract to Purchase. Buyer waives the inspection contingency except for the items described below (Describe defect, repair work required and estimated cost of repairs, if available):” Taking this into account, the buyer’s agent has not provided copies of the inspection report that say these items are defective and are in need of attention (at least I assume these weren’t provided since you didn’t say anything about the relevant portions of the inspection report being available).

2.) The writing agent never specifies WHO is supposed to do the work listed. Sure, you can assume the SELLER is supposed to take responsibility for having the work done, but it never says that “professional contractor,” or “certified HVAC company” or anything like that. Read explicitly, the owners could technically perform the repairs themselves. It would be a challenge for them to “Install radon mitigation system,” but the buyer’s agent never specified WHO should be doing the work, and if they require professionals to do it. Without this additional explanation, would the buyer be okay if the owner simply claimed to have cleaned and serviced the furnace and a/c themselves? Or the other repairs for that matter?

3.) Regarding the installation of the GFCI’s – a professional, licensed electrician should be the one making these kinds of modifications to something as critical as the electrical system. What if the house has 2-prong outlets now, but the GFCI needs to have a ground wire run all the way back to the panel? The writing agent should not have left it open to chance that the owners could simply do it themselves. Sure, most people have enough sense that they could figure out how to do such things and save the expense of hiring a contractor. However, for an agent not to specify that a professional contractor should make the necessary repairs, they are leaving themselves open to a complaint by their buyer for not adequately protecting them, etc.

4.) Trim tree touching roof? Which tree? How far back are they supposed to trim it? 6” back?

Trim back to the trunk? This item needs further explanation as far as WHICH tree and how far back to trim it. Last, would the buyer accept it if the owner gets out a chain saw and trims it

themselves, or do they want a professional tree removal company to do the work so that the trimming doesn’t permanently damage the tree?

5.) The writing agent never specifies WHEN the work should be completed (i.e. all work to be completed prior to buyer’s pre-closing walk-through 48 hours prior to closing).

6.) The writing agent never specifies that the buyer wants paid receipts provided prior to closing . . . This ties into # 2 above.

7.) Regarding “evaluate leaking water heater,” the agent did not go further and say “seller to make repair or replace water heater in order to remedy leaking . . . “ It should say something more specific like “owners to have professional plumbing contractor evaluate the leakage noted at the water heater and make repairs or replace unit – at owners’ expense - as needed, based upon plumber’s written report.”

8.) Regarding the radon mitigation system installation, there is always post-installation testing to make sure the system actually mitigates the radon concentration to below 3.9 pCi/l. The agent doesn’t say that the owner must provide the post-installation test results and confirm that the system is working.

9.) Same thing with “explain the staining on the basement ceiling to the right of the staircase.”

What is the buyer going to do after they receive the explanation? Apparently, this staining wasn’t noted on the property disclosure, so what makes them think the owners will have anything more to say? Further, suppose the owners say something like “during periods of prolonged and heavy rain, a small amount of seepage occurs in this area”? Then what? The agent didn’t ask the owner for anything beyond an explanation.

That seems like a ton of things to foul up on a single-page addendum. While I’m usually a fan of “less is more,” with post-inspection issues and the related addenda, you need to provide full details. As such, this addendum is really lacking in specifics that fully explain who is to do what, and by when, etc. It needs more information to give guidance to all parties, as well as to protect the buyer if the owners don’t follow through.