Real Estate Practice Chapter 27 Verify Property Disclosures: Retain a Home Inspector

if a home inspection report reveals property defects unknown and previously undisclosed to the buyer, the buyer may:

-make a demand to correct or eliminate the defects -refuse to close escrow for lack of seller compliance -close escrow and make a money demand on the seller for the difference between the purchase price and the price adjusted for the undisclosed defects

a buyer needs to personally re-inspect the property just before close of escrow to confirm:

-the quality of any repairs made by the seller; and -the general condition and maintenance of the property after entering into the purchase agreement

without a home inspection report delivered by the seller or seller's agent, a buyer's agent becomes duty bound to request one before submitting an offer

True

price adjustment provision

a provision contained in a purchase agreement calling for an adjustment in the price paid for a property to cover the costs necessary to bring the property into the condition as disclosed at the time of acceptance

the purpose of the home inspection is to have an:

independent third-party conduct an investigation and prepare an HIR on the physical aspects of improvements on the property

when a seller has refused to authorize the preparation of an HIR prior to entering into a purchase agreement, the buyer is advised to order one:

on opening escrow

if a price adjustment provision is included in the purchase agreement:

the buyer is able to enforce a reduction of the purchase price before closing