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Termite Inspection Contingency in a Sales Contract

A property sale contract may include several clauses intended to protect the interests of both parties, the buyer and the seller. Among these clauses, one related to termite inspection is often included. But what happens if, on closing day, the buyer discovers that the written documentation required as part of this clause was not provided? Here we will explore the situation and what options the buyer has.

The Termite Inspection Clause

The termite inspection clause is a type of contingency in a real estate sales contract. This clause states that the seller must provide evidence that the property is free of an active termite infestation. This evidence usually comes in the form of a termite inspection report completed by a licensed professional.

Contingencies in Sales Contracts

Contingencies are conditions or requirements that must be met so that the sales contract is valid and enforceable. These conditions are detailed in the contract and often include specific deadlines that must be respected. If one of the parties cannot comply with a contingency condition as specified and within the established period, the other party may have the right to cancel the contract.

If one party cannot meet a contingency condition by a specified deadline, the other party may cancel the contract.

Failure to Comply with the Termite Contingency

In the scenario presented, the buyer learns on the day of closing that the inspection company failed to provide the required written documentation related to the termite inspection. In this situation, the buyer may have grounds to cancel the contract.

Key Aspects for Successful Cancellation

To determine whether the buyer has a strong case for canceling the contract, it is important to consider certain aspects, such as:

  1. Specific requirements: Did the clause set out specific requirements, such as the need for the termite inspector to be properly licensed? If the clause included such requirements and they were not met, the buyer has a solid basis for cancellation.
  2. Compliance within the Deadline: Was the termite inspection and submission of required documentation completed within the time frame stated in the contract? If the deadline is not met, the buyer may have the right to cancel.

Termite Treatment Disclosure: An Essential Step in the Sale of Real Estate

When it comes to selling a property, transparency is key. Sellers must provide accurate and complete information about the condition of their property to avoid legal problems and ensure a fair transaction. This includes any pretreatment for pests, such as termites. So what should a real estate agent do if a seller informs them that their home was treated for termites five years ago and there are currently no problems?

The answer is simple: before listing the property, the agent must advise the seller to disclose termite treatment in the property report.

Why is it so important disclose termite treatment?

Even if local law does not require it, always It is good practice to inform buyers of any previous termite problems at the property. This provides buyers with an accurate picture of the property's history and allows them to make informed decisions. Additionally, it is an essential step to protect both the seller and the agent from potential litigation in the future.

Even in a saleas is“, there is still an obligation to disclose any known termite damage to the property. Failure to disclose this type of information could result in legal consequences for the seller and the agent. Therefore, it is always best to be transparent and make sure buyers are fully informed.

In summary, if you are involved in the sale of a property and the seller has had previous termite treatments, it is crucial that this detail be included in the property documentation. This practice will protect all parties involved and contribute to a fair real estate transaction without unpleasant surprises.

Conclusion

In summary, the termite inspection clause in a sales contract is an important contingency intended to protect the buyer's interests. If this contingency is not met in accordance with the terms and deadlines established in the contract, the buyer may have grounds to request cancellation of the contract. The existence of specific requirements and timely compliance are key factors to consider in this situation.

Legal and Tax Disclaimer

Please be advised that the content presented in this blog is for informational purposes only and should not be construed as legal or tax advice. The articles and information provided here are written from the perspective of a real estate agent affiliated with Keller Williams, and do not represent legal or tax counsel.

As the author, I am a licensed real estate professional under Keller Williams, holding Brokerage DRE License Number: #02197031. However, it is important to note that my expertise is in the field of real estate, and not in legal or tax matters. The insights and opinions shared on this blog are based on my experiences and knowledge in the real estate industry and should be treated as general guidance rather than definitive legal or tax advice.

For specific legal or tax concerns relating to any real estate transactions or investments, readers are strongly encouraged to consult with a qualified attorney or tax advisor who can provide tailored advice based on your individual circumstances and the latest legal and regulatory requirements.

The information on this blog is provided "as is" without warranty of any kind, and I, along with Keller Williams and its affiliates, disclaim all liability for any loss, damage, or misunderstanding arising from reliance on the information contained herein.

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Alber Moya (Alberto Carlos Moya Guerrero)
+1 (747) 305 4628
info@albermoya.com

Luxury Collective
14645 Gault St Valley Glen
Los Angeles, CA, 91405
DRE License Number: #02230789
CalBRE #00745605

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Member of:

Association of REALTORS® (CAR)

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Top Agent On Zillow and Member of Luxury Collective

Alber Moya (Alberto Carlos Moya Guerrero), real estate agent, with DRE License Number: #02230789, who is an integral part of the Luxury Collective team. Our broker, House of Seven Gables Real Estate Inc. operates under the state of California real estate license (CalBRE #00745605), ensuring the highest standard of professionalism and compliance with all equal housing opportunity laws.

The information presented on this website is purely informational and is compiled from sources deemed reliable. However, it is important to note that such information may be subject to errors, omissions, changes in prices, conditions, sale or withdrawal from the market without prior notice. We do not guarantee the accuracy of the descriptions provided, and all measurements and square footage are approximate.

This site does not seek to attract clients who already have properties listed with other real estate agents. Furthermore, the content presented here should not be interpreted as legal, accounting or professional advice of any kind beyond real estate brokerage.

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