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Contract Series Paragraph 15

George Clements ~ Greenville, SC Real Estate

 

Paragraph 15 of the Contract For Sale is entitled "Disclaimer" and looks something like this: 

 

15. DISCLAIMER: Except in the case of a new home being sold by the builder, the Purchaser acknowledges the Seller gives no guarantee or warranty of any kind, expressed or implied, as to the physical condition of the Property, unless otherwise provided for in the Contract. Seller does not warrant the condition of any improvements, services, appliances or systems thereto, or as the merchantability or fitness for a particular purpose of the Property or improvements thereon. Any implied warranty is hereby disclaimed by the Seller. Purchaser and Seller will indemnify and hold listing and/or selling Brokers and their agents harmless from any breach of contract, and any negligent or intentional acts or omissions of any inspectors, repair companies, or other service providers employed by Purchaser or Seller, including any and all such service providers introduced or recommended to Purchaser and/or Seller by listing and/or selling Brokers and their agents.

 

This clause is basically saying that if the home is being resold by an individual that the seller does not guarantee or warranty anything.  If the home where brand new and being sold by a builder then there is usually a warranty for 1 year.  If the purchaser buys the house and then 10 weeks later the HVAC goes out or a leak in the roof forms, the purchaser can do nothing about it.  

Puchasers need to realize that no home is perfect and that things decay and fall apart.  This is just a fact of life.  All systems and structures of a home are going to eventually decay and fall apart and it is just a matter of when.  A seller cannot look into the future and know when this is going to happen.  A roof could have no problems for another 15 years or it could need replaced or repaired in 1 year.  Every house is different. 

If the seller lied about a problem they knew about then the purchaser would have to take it up with the seller.  According to this clause, the agents cannot be held responsible for the seller's actions.  The agents are also not responsible for anything missed by a service provider.

It is important that purchasers understand that no home is perfect and there will be issues that come up from time to time.

Comment balloon 0 commentsGeorge Clements • March 26 2008 09:51AM

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