Repairs needed after accepted offer

**ztekdesign** · 09-06-2011, 06:55 AM

I listed my home and now have an accepted offer. I am in the process of getting septic and well testing done. Also the buyer is getting a home inspection/appraisal done. If the septic test comes back bad and I need to install a new septic system. How should I go about doing this with the buyers. Do I need to repair the system before they can close or can I reduce the price to accommodate the repairs? Just want to know the best way to do this.

Also is there a certain form I should fill out and have them sign to accept the repairs or price reduction?

**Greg** · 09-06-2011, 07:54 AM

If the lender finds out the septic system needs to be replaced they will not fund the loan. So, your best option is to repair it and don't do anything that might alert the lender to the problem.

your agent should have a form for you to sign dealing with the repair work.

**ztekdesign** · 09-06-2011, 07:58 AM

Originally Posted by Greg

If the lender finds out the septic system needs to be replaced they will not fund the loan. So, your best option is to repair it and don't do anything that might alert the lender to the problem.

your agent should have a form for you to sign dealing with the repair work.

So what if the work can't be done by closing? Do we have to move closing date back? I thought you could reduce the price or use a Escrow account for repairs?

Also I don't have a agent. We are handling the sale without a Realtor. So is there a special form I should fill out and present to the buyers?

**J&E** · 09-06-2011, 02:29 PM

In the purchase agreement there are contingencies which state the buyer will buy the home once they have inspections done and are satisfied with the condition of the property. If the inspection report comes back and states that something needs repairs then it is up for negotiation at that point or the buyer can back out. It depends on both parties to come to an agreement regarding the fact if they should reduce the price of the purchase or have the seller pay for the repairs.

**Greg** · 09-07-2011, 08:03 AM

If you escrow the money for repairs both you and the buyer are going to want to document this which means adding it to the contract. This is where the lender finds out about the problem.

If you don't document the escrow money then the buyer can come back later and accuse you of selling them a house with a bad septic. catch 22

The same applies for a price reduction. The buyer can come back later and sue.

We use a repair request agreement so the buyers can not come back after closing.

**Home Selling Consultant** · 09-11-2011, 07:57 AM

ztecdesign ~

You're at least using a real estate attorney for closing I would assume. They will know what wording /form/addendum to have signed about repairs being done before closing.

Unless you're selling your home "AS IS" a system such as the septic system must be in working order, especially when the buyer is getting a mortgage.

I agree with the other posters as to replacing septic if needed before closing. If work can't be done before that, then yes, closing would more than likely have to be moved.