Skip to content
Link copied to clipboard

Real estate Q&A: Inspection key when buying renovated house

I want to buy a property from an investor, who bought it at a foreclosure auction and then renovated the property. The seller accepted my offer price but wants me to sign a lengthy addendum, which essentially makes this an "as-is" sale and releases him from any responsibility for the renovations. Should I sign this? --Robert

istockphoto.com
istockphoto.comRead more
    by Gary M. Singer, Sun Sentinel (TNS), McClatchy-Tribune
    Published 

Q: I want to buy a property from an investor, who bought it at a foreclosure auction and then renovated the property. The seller accepted my offer price but wants me to sign a lengthy addendum, which essentially makes this an "as-is" sale and releases him from any responsibility for the renovations. Should I sign this?
--Robert


A: You can sign it as long as you understand the risks. Many real estate investors will buy a distressed home and fix it up in order to sell it at a profit. The majority of these deals will be good for all involved. But any time you are buying a renovated home, it requires additional due diligence to make sure the work was done correctly.
I can't overstate the importance of a home inspection, and it's even more important on this type of deal. Carefully review the home inspection report. When most inspectors find a problem, they will recommend that you follow up with a properly licensed specialist _ such as a roofer, plumber or electrician _ to get more detailed information. Your inspector has lots of knowledge about all of the areas of the house, but even the best inspectors don't have the skills of the relevant specialist. You'll have to pay these specialists, of course, so be sure to factor that into your offer for the home.
You'll also need to make sure the proper permits were pulled and city inspections performed so that you don't have to redo the work later. Many cities have this information available online, but in some areas you might need to go down to the local building department.


---
ABOUT THE WRITER
Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program. Send him questions online at http://sunsent.nl/mR20t7 or follow him on Twitter @GarySingerLaw.

The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
---
(c)2015 Sun Sentinel
Visit Sun Sentinel at www.sun-sentinel.com
Distributed by Tribune Content Agency, LLC.