Property Condition - Seller’s What to Expect
During the Inspection Process
The Transfer Disclosure Statement (TDS) – Perhaps the most important
paper you will complete when selling your home
Most sellers (other than institutional type) are required by law to
disclose facts and defects, which materially affect the value or desirability of
their home. The Transfer Disclosure Statement (TDS) helps the seller meet this
requirement by providing a standardized format for most basic information. If
the seller does not fully disclose, the buyer will be able to cancel the escrow,
or worse find out after escrow closes - Full disclosure can reduce or eliminate
the possibility of later legal action.
Often, as part of “day to day” living in a home, certain items do not
function properly, are overlooked and we just accept them. Some common problems:
Does your doorbell work? Is the clock on the oven operating properly? Do all
windows and doors open properly? Is there safety glass in shower & sliding
glass doors? Are you aware of asbestos or lead based paint? How is your water
pressure? Are any of your sprinklers broken? If you have a water softener is it
owned or rented? Information about an alarm system should also be noted on the
T.D.S. When in doubt, disclose.
Other than mandatory government retrofit (smoke detectors, water heater
strapping, etc.), most sales in Los Angeles County are “as is”, subject to the
buyer’s approval of their inspection. There is no perfect house; problems
disclosed to a buyer when a buyer is still excited about buying the home are
frequently easier for the buyer to accept. Some Realtors, have the buyer
acknowledge receipt and approval of the transfer disclosure at the time of the
initial offer.
The Physical Inspection
In addition to your written disclosures, the buyer is urged to contact a
professional inspector for a more thorough evaluation of the home. The inspector
performs a visual examination of the home and tests to see if all major systems
in the home are operating satisfactorily. The inspection is typically scheduled
within ten to fourteen days after you and the buyer have accepted the terms of
the Real Estate Purchase Contract. A professional home inspection is an
important line of defense for both the buyer and the seller of a home. It
functions like a check-up from a doctor. If doctor suspects problems exist,
he/she will send you to a specialist. A professional home inspector operates in
much the same way. When a problem exists with certain areas of the home, the
inspector may recommend further evaluation by specialists, such as fireplace,
seismic, etc.
Based on the results of the buyer’s inspections and investigations,
buyers have the contractual right to request, within the stipulated time frame,
that you, as the seller, agree to correct certain deficiencies. As the seller,
you may agree or refuse to repair these items. Depending on the severity of the
defects, the buyer’s request is often successfully negotiated by the agents
involved.
The Termite Inspection
The structural pest control (termite) inspection is conducted by a state
licensed inspector. In addition to actual termite damage, the report will
indicate any type of wood destroying organisms that may be present, including
fungi (sometimes called "dry rot"), which generally results from excessive
moisture.
Typically the seller pays for work that deals with current infestation
(Section I). If desired, the buyer typically pays for work considered to be
preventative (Section II). Customarily, section I termite clearance is provided
by the seller prior to close of escrow and the property will be certified to be
free of active infestation.
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