I am currently in attorney review in NJ. I am a first time homebuyer, so all this contract stuff is confusing and frustrating. I thought it best to hire an attorney for attorney review so I did.
There was this added language to my contract:
As-Is Sale & Buyer Responsibility for Certifications: Buyer acknowledges that the property is being sold in its present as-is condition, with no warranties or guarantees from the Seller. Any inspections, certifications, or requirements necessary for settlement, including but not limited to municipal, state, or lender-required certifications, shall be the sole responsibility of the Buyer. Buyer shall obtain and pay for all necessary permits, approvals, or inspections as required, with no obligation on the Seller to make repairs or provide compliance documentation.
Seller will obtain the Certificate of Occupancy.
and this is the standard contract language regarding as-is / inspections:
(D) Buyer's Right to Inspections.
Buyer acknowledges that the Property is being sold in an “as is” condition and that this Contract is entered into based upon the knowledge of Buyer as to the value of the land and whatever buildings are upon the Property, and not on any representation made by Seller, Brokers or their agents as to character or quality of the Property. Therefore, Buyer, at Buyer's sole cost and expense, is granted the right to have the dwelling and all other aspects of the Property inspected and evaluated by “qualified inspectors” (as the term is defined in subsection H below) for the purpose of determining the existence of any physical defects or environmental conditions such as outlined above. If Buyer chooses to make inspections referred to in this paragraph, such inspections must be completed, and written reports including a list of repairs Buyer is requesting must be furnished to Seller and Brokers within (if left blank, then 14) calendar days after the attorney-review period is completed or, if this Contract is timely disapproved by an attorney as provided in the Attorney-Review Clause Section of this Contract, then within (if left blank, then 14) calendar days after the parties agree to the terms of this Contract. If Buyer fails to furnish such written reports to Seller and Brokers within the (if left blank, then 14) calendar days specified in this paragraph, this contingency clause shall be deemed waived by Buyer, and the Property shall be deemed acceptable by Buyer. The time period for furnishing the inspection reports is referred to as the “Inspection Time Period.” Seller shall have all utilities in service for inspections.I am going into this deal with full knowledge that the house is being sold as-is (sellers don't want to make any repairs). My attorney is concerned however that this additional language is more than just clarification that the home is being sold as-is and believes it may waive my rights to walk away / get my deposit back if we go through inspections and discover there are far more issues with the home than we can afford / are willing to pay to have fixed.(E) Responsibility to Cure.
If any physical defects or environmental conditions (other than radon or woodboring insects) are reported by the qualified inspectors to Seller within the Inspection Time Period, Seller shall then have seven (7) business days after the receipt of such reports to notify Buyer in writing that Seller shall correct or cure any of the defects set forth in such reports. If Seller fails to notify Buyer of Seller's agreement to so cure and correct, such failure to so notify shall be deemed to be a refusal by Seller to cure or correct such defects. If Seller fails to agree to cure or correct such defects within the seven (7) business day period, or if the environmental condition at the Property (other than radon) is incurable and is of such significance as to unreasonably endanger the health of Buyer, Buyer shall then have the right to void this Contract by notifying Seller in writing within seven (7) business days thereafter. If Buyer fails to void this Contract within the seven (7) business day period, Buyer shall have waived Buyer's right to cancel this Contract and this Contract shall remain in full force, and Seller shall be under no obligation to correct or cure any of the defects set forth in the inspections. If Seller agrees to correct or cure such defects, all such repair work shall be completed by Seller prior to the closing of title. Radon at the Property shall be governed by the provisions of paragraph (B), above.
My attorney told me that his interpretation of the added language is that i am waiving my right to cancel if inspections turn out poorly. I don't understand how, but i am not a lawyer. The attorney wants to add an addendum to make it more explicit that I am not waiving any right to walk from the deal as already defined in the standard contract.
In contrast, my realtor thinks my attorney is wrong and that nothing in the added language implies that I am waiving my right to cancel the contract due to inspections. I thought this added language was just reiterating in writing what we already understood about the seller not being willing to fix anything, which we knew and understood going into this deal. So who's wrong? Im not a lawyer nor a realtor, i lean towards my realtor being correct here, but I also trust her less in the context of a disinterested 3rd party lawyer vs a very much vested realtor that benefits if we close the deal.
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source https://www.reddit.com/r/RealEstate/comments/1jwpggs/whos_wrong_here_my_attorney_or_my_realtor/
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