Every transaction is different in their own special way....right?
Just imagine......The home my first time buyers are closing on in 84 hours is damaged from a huge hail storm. Here is the story....Huge hail storm moves right over the Avery Ranch area of Northwest Austin. The storm moves right over the property my first time buyers have under contract at 9pm on the evening of Thursday, June 11, 2009, just a few short hours away from my Monday, June 15, 2009 9am morning closing. What is an agent to do? Well here is what I did. As the storm approached I thought to myself, please God no hail today. As I watched the local weather report on TV and heard the weather man calling out tornado warnings for the area and 1 to 2 inch diameter hail in the Avery Ranch subdivision my heart sank. As the storm rolled through on the radar, I immediately notified my buyer of the hail storm and potential for hail damage then crossed my fingers and hoped for the best. I did not get a very good night sleep that night as you can imagine. I kept thinking hopefully no damage to the house but I would have to lay there tossing and turning in anticipation until the next morning. When the sun came up, I notified the listing agent on vacation immediately and arranged to have the roof reinspected for damage ASAP remeber this is now the Friday before my Monday 9am closing. Can you say time is ticking and fast? When the damage was assessed, there was minor window trim damage and a few dings on the roof. My buyers and I were lucky no real major damage only a few repairs needed. What a relief! However, what if there is major damage to the home, then what is an agent to do? What does this mean for your buyers? Just take a deep breath and pull out the contract......
As a Texas Realtor, representing your buyer, what do you do? What are your buyer's rights under the contract? How do you do to get this issue resolved? Don't panic! The Texas sales contract was designed to protect your buyer's.
According to the Casulaty Loss paragraph 14 of the Texas sales contract, the buyer has 3 options to pick from prior to closing.
1. The buyer may terminate the contract and the earnest money will be refunded to buyer.
2. The buyer may extend the time for performance up to 15 days and the closing date will be extended as necessary.
3. The buyer may accept the property in its damaged condition with an assignment of the insurance proceeds and receive credit from seller at closing in the amount of the deductible under the insurance policy.
Are you looking to buy or sell a home in Austin, TX? If so, contact me I would love to work for you. Email me for a free comparative market analysis for your home! Call Amy 512-507-5053 or email me at amy@dowerrealestate.com Oh by the way, I am never too busy for your referrals!
Comments(3)