Most buyers will want to protect themselves by requesting testing as part of their offer. In today’s market with much competition and multi-offer situations, some are taking some testing out of their offer but changing market conditions could change this. A seller would lose a well qualified buyer if they do not accept offers with these type contingencies.
A seller should be aware that after buyers perform testing, a copy of the results/reports is currently required to be given to them. A seller and buyer can negotiate any issues in accordance with the terms and time limitations given in their agreement of sale. Should negotiations fail, the buyer will typically terminate the sale and get any deposit returned to them.
If the sale is terminated, any “material defects” discovered, must now be disclosed by the seller to any future potential buyers. The Seller’s Property Disclosure Statement should be revised or amended. The seller can offer copies of the reports to future buyers at their discretion. A disclaimer is suggested when providing previous reports.
If there is a material defect affecting the property, the seller will need to address the issue with corrective measures or lower their price to accommodate and disclose those defects which are not being corrected. For this reason, in most cases, sellers may feel it is in their best interest to negotiate with the initial buyer. Some factors which may be beyond the parties control and may influence whether or not this is possible. Lending requirements are more restrictive that in past and the buyer would not get the needed financing if corrections are not made prior to settlement. Sellers may or may not have the ability to make necessary corrections depending on their situation.
