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Contract Series Paragraph 16 D

George Clements ~ Greenville, SC Real Estate


Paragraph 16D deals with what types of repairs the seller will be required to do and looks something like this: 


(D) REPAIRS: To the extent the Purchaser has requested such repairs, the Seller agrees to make or pay for
repairs to the following items: (1) Structural defects or damage; (2) Leaks to roof or basement; (3) Repairs
required to place the heating, air conditioning, electrical and plumbing systems and any appliances to be
conveyed in an operative condition and functioning properly; (4) Repairs required to cause the sewer or septic
system, well water system, irrigation system, pool or spa and any related equipment to function properly; (5)
Repairs required to mitigate the presence of any hazardous substances; (6) Replacement of any missing or
cracked glass. The Seller will have no obligation to repair or replace any double glass panes which have lost
their seal (fogged); (7) Repairs required pursuant to Paragraph 16 (B) above; (8) Repairs required pursuant to
Paragraph (C) above; and (9) Repairs required by a VA, FHA or other appraisal. If the Seller refuses to make or
pay for repairs per items (1) through (9) above, the Purchaser will have the right to terminate this Contract and
receive a return of the earnest money subject to provisions of Paragraph 14, and neither party will have any
further rights hereunder.  If the Purchaser elects not to terminate this Contract, the Parties will proceed hereunder and any requested repairs refused by the Seller will be the sole responsibility of the Purchaser. Further, if the Seller agrees to make or pay for the cost of the repairs requested by the Purchaser, the Purchaser will not have the right to terminate this Contract and the Parties will proceed hereunder. The obligations of the Seller under Paragraph 16 terminate on the day of closing or on the day of possession, whichever occurs first.

There are basically 9 types of repairs that the seller has to make if the purchaser requests that they be done.  Structural, leaks to roof or basement, systems not working properly (HVAC, electric, plumbing, and appliances), sewer/septic, hazardous substances, cracked glass (excluding broken seals/fogged glass), radon, termites, excessive moisture levels, and any repair required for a VA or FHA appraisal.

Anything that does not fit in this list is usually considered cosmetic and the seller is not required to fix it. 

VA and FHA loans are a different story though.  They can require the seller to take care of issues that would normally be considered cosmetic.  For instance, if there is exposed wood on the outside of the house, the FHA appraisal will not pass unless the seller covers or paints the wood.  Another instance would be a broken plate on an electric receptacle.  

If the seller refuses to have issues mentioned in this paragraph taken care of then the purchaser can terminate the contract.  If the seller agrees to fix any issue mentioned in this paragraph then the purchaser cannot pull out without being in default. 

Comment balloon 0 commentsGeorge Clements • March 26 2008 10:50AM