Writing a repair addendum is one of the harder things to do as a real estate agent. There are a lot of things to think about, and if you miss something crucial, the seller could be slippery and wiggle out of the agreement using loopholes in loose language.
There is nothing worse than having your intended request of the seller twisted and turned until they’ve completely undone what their commitment was.
Here’s an example. Let’s say the buyer’s home inspection reveals there is an exterior window that is failing. In most States, the general home inspection is limited to what the inspector can visually see. Should you write, “Seller to repair exterior window”, it leaves a lot of space for subjective thinking.
Be as clear as possible about what the issue is and how you want it remedied. Using our examples, it would read like this. “Seller to replace or repair the exterior window. In the event, more damage is observed once the trim pieces or window is removed, seller to replace or repair all affected pieces.”
Outline who should do the work (even if it’s in the boiler plate language, it doesn’t hurt to reiterate it). Using our example, it would read something like this. “Seller to have a licensed contractor replace or repair the exterior window. In the event, more damage is observed once the trim pieces or window is removed, seller to replace or repair all affected pieces.”
Have a deadline for when the work is to be done.
“Seller to have a licensed contractor replace or repair the exterior window. In the event, more damage is observed once the trim pieces or window is removed, seller to replace or repair all affected pieces. All work to be completed prior to closing.”
Use if this, then that statements. “Seller to have a licensed contractor replace or repair the exterior window. In the event, more damage is observed once the trim pieces or window is removed, seller to replace or repair all affected pieces. All work to be completed prior to closing. If the contractor reveals mold during demo, seller is to inform buyer in writing prior to proceeding.”
Be very clear what repair you are requesting and its location. “Seller to have a licensed contractor replace or repair the exterior window on the NW wall of the east facing dining room. In the event, more damage is observed once the trim pieces or window is removed, seller to replace or repair all affected pieces. All work to be completed prior to closing. If the contractor reveals mold during demo, seller is to inform buyer in writing prior to proceeding.”
After writing your repair addendum, step back and ask yourself this question. “Will a third-party person, like an attorney in small claims court, who has never seen the property or know the details of this transaction be able to decipher the buyer’s request to the seller?” If the answer is no, add more detail.
Protection of your client’s interest is the most important part of your job. Learning to writing a complete repair addendum will do that.
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