Originaly Posted On www.tonycard.com

One of the agents in our office sold a bank owned property to a client of his just recently.  When the buyer arrived for the home inspection, they opened the house and found it flooded.  It turns out that the pipes broke due to the lines freezing while there was still water in them.  Frozen pipes are very common in Big Bear if you don't winterize the property when not in use.    My question is this.  Who is responsible for the repairs to the house?

According to the verbiage in the California Residential Purchase Contract, the seller is required to keep the home in the same condition that it was when the offer was accepted.  In other words, if a window is broken after the offer has been accepted, the seller must replace that window before the close of escrow.

As this was a bank owned, REO property that was sold, there is no guarantee that the bank is going to make the flood repairs.   When an offer has been accepted on a bank owned, REO property, the bank sends out an addendum to the purchase California Residential Purchase contract that changes any number of items.     Before assuming that the bank is going to make the repairs that would be necessary to bring the house back to the condition that it was when the offer was accepted, read the addendum. 

In fact, before you entering into escrow on any bank owned, REO property, make sure that you read and understand the addendum.