Ready To Buy A Home

Who’s Who In The Transaction

Life Of A Purchase & Sales Transaction

Title Insurance

What is Escrow

Inspection Process

Who Pays What?

Financing

The Loan Process

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During the contingency period, the Buyer or Seller will order physical inspections as specified in the Purchase Agreement. Legislation mandates (under Civil Code 1102) that the Seller has the responsibility to reveal the true condition of the property on a Transfer Disclosure Statement. This may help determine what kind of property inspections are desired or necessary.

WHO PAYS? Your Purchase Sale Agreement will specify who is responsible for the costs of inspections and for making any needed corrections or repairs. It is negotiable between the parties and should be considered carefully. Your agent will advise you what is customary and prudent.

STRUCTURAL PEST CONTROL INSPECTION A licensed inspector will examine the property for any active infestation by wood destroying organisms. Most pest control reports classify conditions as Section I or Section II. The inspection and the ensuing Section I repair work is usually paid for by the Seller. Section II preventative measures are generally negotiated, and not necessarily completed.

Section I Conditions are those currently causing damage to the property. These conditions generally need to be corrected before a Lender will make a loan on a home.

Section II Conditions are those not currently causing damage but which are likely to, if left unattended.

HOME INSPECTION This inspection may encompass roof, plumbing, electrical, heating, appliances, water heater, furnace, exterior siding, and other visible features of the property. A detailed report will be written with recommendations and pictures which may include the suggestion to consult a specialist (such as a structural engineer or roofing contractor). The inspection fee is usually paid by the Buyer.

GEOLOGICAL INSPECTION If requested, a soils engineer will inspect the soil conditions and the stability of the ground beneath the structure, as well as research past geological activity in the area. You may also elect to go to the city and research the property’s proximity to known earthquake fault lines. Typically, the Buyer pays for this inspection.

HOME PROTECTION PLANS Home protection plans protect the Buyer’s major investment beginning immediately upon close of escrow. The plans cover major mechanical systems in the home as well as certain major appliances. Realtors® are familiar with some of the various plans available and will be happy to gather a selection of programs for you to study.