Have you guys and gals read the new purchase agreement that will be mandated for use by licensees in 2008? I have. In Baton Rouge, our purchase agreements have a clause that requires the seller to obtain a termite certificate for the closing. The wording further requires the seller to have the home treated if a clean termite certificate cannot be obtained. And, it allows the buyer to cancel the contract if damage due to wood destroying insects in found.
This is not in the state contract that will be mandated to us to use. Now I know the buyer can go ahead and get the termite certificate. But, the buyer has to fork out money for the appraisal, the inspection, the good faith deposit, and other inspections all before they purchase the home. The buyer spends money on the seller's home to verify that the seller doesn't have it overpriced or in bad shape. Personally, I think the seller should be getting the inspection, but that's another topic entirely.
It concerns me that this wording isn't in the new contract to protect the buyer. The next question, "Is there anything else that isn't in the new contract?"
By the way, in case you didn't know we are not allowed to scratch out anything on the new contract.
All-in-all, I think the new state mandated contract is a great idea. I love the fact that people all across the state are using the same form. What I think needs to be changed in the law is one minor little detail. The law requires licensees to use the new contract. It is not required for every real estate transaction in Louisiana -- only those involving a licensee. Now, if the contract is an agreement between the buyer and the seller, they should be able to write their contract on a napkin if they want, and they can, as long as a licensee isn't involved.
What are your thoughts?
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