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Updated over 9 years ago,

User Stats

82
Posts
17
Votes
Andrew Hofing
  • Pittsburgh, PA
17
Votes |
82
Posts

Is it acceptable to have final inspection contingency on a As-is SFR house?

Andrew Hofing
  • Pittsburgh, PA
Posted

We are looking @ purchasing SFR house that needs a lot of work, probably $45K in renovations. The property has a section 8 tenant that is mo. to mo. and seller is willing to evict prior to close. These tenants have basically destroyed the property so we are ok with this. My partner made the point that the tenants could possibly do damage before they leave and we would like to eleveate the risk with a clause stating: " Closing of transaction is subject to condition of property meeting acceptable conditions based on initial inspection and remaining in said condition as of day of closing. Seller and Assignor will hold harmless buyer for withdrawal from contract to purchase based on any excessive damage caused by tenants causing a significant change in condition of property at time of final walk thru." We are purchasing thru a wholesaler and he has in his assignment contract that basically has a non-refundable deposit clause. He said today that he hasn't and would not enforce that clause and would refund the deposit if we walk away. Should I use the clause or take him for his word?

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