As part if the series that I had been working onfollowing is my take on Short Sale Inspection Issues and Other Matters.

Inspections

Generally the Seller is not willing to pay for any repairs. This should be made clear in the contract. Recall that paragraph 15 of the standard Realtor contract in Hampden County requires that the Buyer pay for the first $1,000.00 in termite treatment and repair. If Seller is unwilling to pay this charge, it should not be left in the offer or purchase and sale agreement as a potential deal breaker. A compromise on this point is to state in the short sale addendum that the inspections may be performed for wood boring insects, but that these inspections fall under the general provisions of paragraph 20 where Buyer may request the return of their deposit if they are not satisfied with th results of the inspections.

Additional Provisions 

Because there should be a date that the Seller must perform by, it is important to state a date by which Seller must obtain short sale approval or Buyer at Buyer’s option may terminate the contract. Without such a provision there could arguably be no performance date and Seller could hold Buyer’s deposit indefinitely. Another issue that is very important to the Buyer is their rate lock period. Lenders should attempt to lock the rate for as long as possible because these transactions are often delayed. In our opinion it is unfair to simply state that Buyer may withdraw if their rate lock expires without giving the Seller that date which should be stated as indicated above. The short sale addendum highlights the nature of the transaction, the requirement of approval from the lender(s) and the fact that there will be no adjustments after closing and no money for repairs prior to closing.

- Nyles Courchesne