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Received: from CMU-CS-IUS by CMU-CS-A; 7 Mar 84 20:52:51 EST
Date: Wednesday, 7 March 1984 19:52:42 EST
Sender: Peter.Highnam@cmu-cs-ius
From: Peter.Highnam@cmu-cs-ius, Tom.Lane@cmu-cs-a
To: Bovik@cmu-cs-a, Peter.Highnam <pth@cmu-cs-ius>
Subject: Re: House buying.
Message-ID: <1984.3.8.0.51.12.Peter.Highnam@cmu-cs-ius>

Received: from CMU-CS-A by CMU-CS-IUS; 22 Feb 84 02:40:03 EST
In-Reply-To: <22Feb84.004907.PH70@CMU-CS-A>
Message-Id: <22Feb84.020454.TL19@CMU-CS-A>

Peter,
  You absolutely should not buy the place without having it inspected,
especially if it's more than a few years old.  Fortunately, it's not
necessary (or even customary) to have this done before committing to
buy.
  What you'll actually be signing tomorrow is called an "Agreement of
Sale".  There's a standard form approved by the Greater Pgh. Board of
Realtors and the Allegheny County Bar Association, which is about 4
pages of preprinted legalese with spaces to fill in particulars.  (If
they aren't using the standard form, ask why not.)  What you need to
know is that there are several paragraphs which are customarily added
in the "additional provisions" section at the end.  You should make sure
that your agreement has these additions.  The additions I recommend are
very standard practice in these parts, and you should be suspicious if
the other party won't agree to them. Here they are:
  1.  If you're planning to apply for a mortgage, there's a
standard rider that lets you off the hook if you are turned down on
your mortgage application.  (This is actually an additional preprinted
form, but there should be a reference to it on the agreement of sale.)
  2.  Termite clause.  This is separate from the general inspection.
Note that most banks REQUIRE termite reports, but not general reports
(they're behind the times, as usual).  Typical language is along
these lines:
"This agreement is contingent upon Buyer at his own expense obtaining
an inspection of Property by a reputable exterminator.  If such
inspection reveals infestation by wood boring insects, Seller agrees to
assume cost of treatment by a reputable exterminator.  Seller also
agrees to assume cost of repair of any damage caused by such
infestation; otherwise, at the option of Buyer, this agreement may be
declared null & void and all hand monies returned to Buyer without
penalty."
  3.  General inspection clause. (This is what you actually asked about,
but the other two are at least as important.) Typically reads about
like this:
"This agreement is contingent upon Buyer obtaining a satisfactory
inspection report on the Property, issued by a reputable engineer or
house inspection service. Buyer shall have [typically 10] days from
the date of this agreement to complete said inspection, the cost of
which shall be borne by Buyer. In the event that said report discloses
material defects, then at Seller's option, Seller may remedy said defects
at Seller's expense, or may terminate this agreement, in which case
all hand monies shall be returned to Buyer without penalty."

Note that you pay for the inspections, but the seller pays for fixing
any problems that turn up. (In practice, the seller may offer a lower price
in return for your fixing the problems.) Note also that "satisfactory"
means satisfactory to *you*.

				good luck, tom lane

ps. this does not qualify as good legal advice. Find a lawyer or get
another realtor to represent you, if anything seems at all funny.

pps. The two inspections together will run you maybe $200; small price
for peace of mind. By all means go along when the general inspection is
done; you'll learn a lot. I have a little book about house inspecting
I'd be glad to lend you, if you want to bone up beforehand.

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