Whose responsibility....seller or buyer?

I am a new investor. I purchased my first property from an inverstor. the property was a new rehab from top to bottom. being that I was a rookie at buying property, I missed certain things that the house needed in order for section 8 to pass it for inspection. Those things were: railings on the stairs of the common areas, drainage pipes for the gutters, carbon monoxide detectors, shoots for the water heaters, window borders, among a few other things. whose responsibility is it to fix those things up, the buying investor or selling investor?

If you already bought it they are your responsibilty. If you haven’t you can work something out in the agreement to have him fix it presale or reduce the price to accomodate those repairs.

ummm, good info. thanks

EVERYTHING in RE is negotiable!!!

Keith

Not post sale…

True…my point is that NOTHING is the specific responsibility of either party.

If however, the building meets the building codes, etc. the seller may balk at making changes to insure that the new owner passes his Section 8 inspection. For example, CO detectors are not required by code…if I’m the seller, I’m not going to pay for those so that the buyer can meet Section 8 rules…

Most of what’s on this list is piddley anyway.

Keith

Depending on the state that you’re in, it sounds like you’re too late. Typically these things would be negotiated before the purchase and sale agreement was signed. If you didn’t notice any of them, then you’re stuck with it.

As an example, I’m doing a purchase right now where there’s an old oil tank that’s not being used in the basement. The seller was going to try to leave it in there, but I pointed out that the state law requires the tank to be removed if it’s not in use and that’s the seller’s responsibility. The tank is getting removed. I think the seller bought it with the tank there, he didn’t know it was supposed to be removed and I guess nobody said anything so he got stuck with the bill instead of me.

Also there’s a new state law the requires carbon monoxide detectors and that’s in there along with the smoke detector requirement. That’s up to the seller to put in and to get a certificate from the fire department saying the property complies with the law.

Those other items are pretty much negotiable. Usually I never have the seller do anything, always better to take a credit. The seller doesn’t have any incentive to do a good job and there’s no warranty. Plus sellers just want to be rid of the place so getting a credit is much easier.

thank u for that info. I’m learning that rule now, its better to do things yourself than wait for the seller to do it. I needed some things done for the house to pass inspection and because of my inexperience, I went back to th seller asking him to make the changes (only because I sought the advice of some investors ad they said that it was the sellers responsibility ). the seller said he ould take care of it but is dragging his feet about it. to make a long story short, I felt it was my responsibility once I purchased the property. and I ended up doing the repairs myself anyway. a good learning experience.

how do you think I should go about preventing this from happening again. I was thinking taking an inspector with me when I look at the house. any ideas?

You should always have an inspection clause in your contracts and should define in the contract every, single itme that needs to be addressed specifying which side is responsible.

“If it ain’t in writing, it ain’t…”

Keith

You should always ask. I may have a seller that is brand new and fix it even after the sale. You never know unless you ask.

How do I look now Keith!?!

Bingo…you done good!

Keith

kdhastedt,

inspection clause… good idea. can that clause be made up by either party or is their a general one that I can get online?

“Purchase is contingent upon satisfactory inspection by an inspector approved by the buyer within XX days of contract date”

Keith

ok thanks. i will use that next time. i appreciate the advice.

NP…

Keith

Since Section 8 is a different animal and if you want to purchase homes to rent using Section 8 again - a specific Section 8 inspection clause may be needed to be added to your contract (one you write and add to the contract).

Or just make sure you know in advance what to look for during the inspection period.

Looking for these items before you purchase will save you tons of headaches.

Good luck.