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Importance of Property Investigation.
The physical condition of the land and improvements being purchased is not guaranteed by either
Seller or
Brokers. For this reason,
you should conduct thorough investigations of the Property personally and with
professionals who should provide written reports of their investigations. A
general physical inspection typically does not cover all aspects of the
Property nor items affecting the Property that are not physically located on the
Property. If the professionals recommend further investigations, including a recommendation by a
pest control operator to inspect inaccessible areas of the
Property, you should contact qualified experts to conduct such additional investigations.
B. Buyer's Rights and Duties.
You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and
technical implications of disclosed facts, and the investigation and verification of information and facts that you know or that are within your
diligent attention and observation. The purchase agreement gives you the right to investigate the Property. If you exercise this right, and you should, you
must do so in accordance with the terms of that agreement. This is the best way for you to protect yourself. It is extremely important for you to read all
written reports provided by professionals and to discuss the results of inspections with the professional who conducted the inspection. You have the
right to request that Seller make repairs, corrections or take other action based upon items discovered in your investigations or disclosed by Seller. If
Seller is unwilling or unable to satisfy your requests, or you do not want to purchase the Property in its disclosed and discovered condition, you have the
right to cancel the agreement if you act within specific time periods. If you do not cancel the agreement in a timely and proper manner, you may be in breach of
contract.
C. Seller's Rights and Duties
Seller is required to disclose to you material facts known to him/her that
affect the value or desirability of the Property. However, Seller may not be
aware of some Property defects or conditions. Seller does not have an
obligation to inspect the Property for your benefit nor is Seller obligated
to repair, correct or otherwise cure known defects that are disclosed to you
or previously unknown defects that are discovered by you or your inspectors
during escrow. The purchase agreement obligates Seller to make the Property
available to you for investigations.
D. Broker Obligations.
Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as soil stability, geologic or
environmental conditions, hazardous or illegal controlled substances, structural conditions of the
foundation or other improvements, or the condition of the
roof,
plumbing,
heating, air conditioning,
electrical,
sewer, septic, waste disposal, or other system. The only way to accurately determine the condition of
the Property is through an inspection by an appropriate professional selected by you. If Broker gives you referrals to such professionals, Broker does not
guarantee their performance. You may select any professional of your choosing. In sales involving residential dwellings with no more than four units, Brokers
have a duty to make a diligent visual inspection of the accessible areas of the Property and to disclose the results of that inspection. However, as some
Property defects or conditions may not be discoverable from a visual inspection, it is possible Brokers are not aware of them. If you have entered into a written
agreement with a Broker, the specific terms of that agreement will determine the nature and extent of that Broker’s duty to you.
E. Property Condition.
YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY. IF YOU DO NOT DO SO,
YOU ARE ACTING AGAINST THE ADVICE OF BROKERS. YOU ARE ADVISED TO CONDUCT INVESTIGATIONS OF THE ENTIRE PROPERTY, INCLUDING, BUT NOT LIMITED TO THE
FOLLOWING:
1. General Condition of the Property, it's Systems and Components:
Foundation, roof, plumbing, heating, air conditioning, electrical, mechanical, security,
pool/spa, other structural
and non-structural systems and components, fixtures,
built-in appliances, any personal property included in the sale, and energy efficiency of the
Property. (Structural engineers are best suited to determine possible design or construction defects, and whether improvements are structurally sound.)
2. Square Footage, Age, Boundries.
Square footage, room dimensions, lot size, age of improvements and boundaries. Any numerical statements regarding these items are
APPROXIMATIONS ONLY and have not been verified by Seller and cannot be verified by Brokers. Fences, hedges, walls, retaining walls and other natural or
constructed barriers or markers do not necessarily identify true property boundaries. (Professionals such as appraisers, architects, surveyors and civil
engineers are best suited to determine square footage, dimensions and boundaries of the Property.
3. Wood Destroying Pests.
Presence of, or conditions likely to lead to the presence of
wood destroying pests and organisms and other infestation or
infection. Inspection reports covering these items can be separated into two sections: Section 1 identifies areas where infestation or infection is
evident. Section 2 identifies areas where there are conditions likely to lead to infestation or infection. A registered
structural pest control
company is best suited to perform these inspections.
4. Soil Stability.
Existence of fill or compacted soil, expansive or
contracting soil, susceptibility to slippage, settling or movement, and the
adequacy of drainage. (Geotechnical engineers are best suited to determine such
conditions, causes and remedies.
5 Roof.
Present condition, age, leaks, and remaining useful
life of the roof. (Roofing contractors are best suited to determine these conditions.
6. Pool/SPA:
Cracks, leaks or operational problems of the
pool or spa. (Pool
contractors are best suited to determine these conditions.).
7. Waste Disposal:
Type, size, adequacy, capacity and condition of
sewer and septic systems and components, connection to sewer, and applicable
fees.
8. Water and Utilities, Well systems and Components:
Water and utility availability, use restrictions
and costs. Water quality, adequacy, condition, and performance of well systems
and components.
9. Environmental Hazards:
Potential
environmental hazards, including, but not
limited to, asbestos, lead-based paint and other lead contamination, radon,
methane, other gases, fuel oil or chemical storage tanks, contaminated soil or
water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear
sources, and other substances, materials, products, or conditions (including
mold (airborne, toxic or otherwise), fungus or similar contaminants). (For more
information on these items, you may consult an appropriate professional or read
the booklets “Environmental Hazards: A Guide for Homeowners, Buyers, Landlords
and Tenants ,
” “Protect Your Family From Lead in Your Home ” or both.
10. Earthquakes and Flooding:
Susceptibility of the Property to
earthquake/seismic hazards and propensity of the Property to flood. (A Geologist
or Geotechnical Engineer is best suited to provide information on these
conditions.
11. Fire Hazard and Insurance:
The availability and cost of necessary or desired
insurance may vary. The location of the Property in a seismic, flood or fire
hazard zone, and other conditions, such as the age of the Property and the
claims history of the Property and Buyer, may affect the availability and need
for certain types of insurance. Buyer should explore insurance options early as
this information may affect other decisions, including the removal of loan and
inspection contingencies. (An insurance agent is best suited to provide
information on these conditions.
12. Building Permits, Zoning and Governmental Regulations:
Permits, inspections, certificates, zoning, other
governmental limitations, restrictions, and requirements affecting the current
or future use of the Property, its development or size. (Such information is
available from appropriate governmental agencies and private information
providers. Brokers are not qualified to review or interpret any such
information.) .
13. Rental Property Restrictions:
Some cities and counties impose restrictions that
limit the amount of rent that can be charged, the maximum number of occupants;
and the right of a landlord to terminate a tenancy. Deadbolt or other locks and
security systems for doors and windows, including window bars, should be
examined to determine whether they satisfy legal requirements. (Government
agencies can provide information about these restrictions and other
requirements.
14. Security and Safety:
State and local Law may require the installation of
barriers, access alarms, self-latching mechanisms and/or other measures to
decrease the risk to children and other persons of existing
swimming pools and
hot tubs, as well as various fire safety and other measures concerning other
features of the Property. Compliance requirements differ from city to city and
county to county. Unless specifically agreed, the Property may not be in
compliance with these requirements. (Local government agencies can provide
information about these restrictions and other requirements.
15. Neighborhood Area, Subdivision Conditions: Personal Factors:
Neighborhood or area conditions, including
walkability, schools,
proximity and adequacy of law enforcement, crime statistics, the proximity of
registered felons or offenders, fire protection, other government services,
availability, adequacy and cost of any speed-wired, wireless internet
connections or other telecommunications or other technology services and
installations, proximity to commercial, industrial or agricultural activities,
existing and proposed transportation, construction and development that may
affect noise, view, or traffic, airport noise, noise or odor from any source,
wild and domestic animals, other nuisances, hazards, or circumstances, protected
species, wetland properties, botanical diseases, historic or other
governmentally protected sites or improvements, cemeteries, facilities and
condition of common areas of common interest subdivisions, and possible lack of
compliance with any governing documents or
Homeowners' Association requirements,
conditions and influences of significance to certain cultures and/or religions,
and personal needs, requirements and preferences of Buyer.
Suggested Buying Real Estate Books
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