If we’re required to makes some repairs before our lender will let us close, how do we protect outselves from liability?
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If we’re required to makes some repairs before our lender will let us close, how do we protect outselves from liability?
Purchasing a home “as-is” with an FHA mortgage. The home needs some repairs and the mortgage company will not close the loan until repairs are made.Seller has no money to make repairs. We are willing to make required repairs mandated by FHA guidelines but feel we need to protect ourselves from liabilities since the expense of the repairs will prior to transfer of title or conveyance. Is there an addendum or other form that can be attached to the previously signed purchase agreement to protect these investments?
Asked on June 13, 2011 under Real Estate Law, Louisiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
There is no standard form, but a simple addendum (or stand alone agreement) can be made to the effect that in the event that the sale is not consummated, through no fault of the prospective buyer, the seller shall repay the cost of the repairs made by buyer and buyer shall have a lien on the property to secure said repayment. You can draw it up in plain language yourself, or, better yet, any attorney--and you should have an attorney already, when buying a home--can draft if for you easily enough. As long as the seller agrees to the basic terms, you should have no difficulty making this happen. Good luck on your home purchase.
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