R/E Possibilities 0 Report post Posted January 2, 2004 Prior to signing a contract with a seller do most investors pay for a pest report and contactors report? What happens if I sign a contract with the seller and then the tenant buyer wants to exercise their option in two years, but there is $10,000 in hidden dry rot. Who pays? Could this cause some legal issues because it wasn't disclosed? The tenant buyer could be pretty irked if the seller won't pay. They would lose their option fee and rent credits. Your thoughts would be greatly appreciated. Thanks, Ed Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 2, 2004 Hello, Ed, and welcome to The Naked Investor.Good question. Let me take a shot at it........Prior to signing a contract with a seller do most investors pay for a pest report and contactors report?I don't. Whether I am holding a property long term in a sandwich lease type deal, or assigning the deal entirely, my agreement with either the tenant/buyer or with the assignee clearly and specifically states that the property is being accepted in as is condition, and that they have made any inspections necessary to be satisfied that the property is up to their standards. From a legal standpoint, I'm pretty much off the hook, unless a known defect is covered up. Then fraud rears its ugly head and legal problems will ensue. But, this is not the way we run our business. If there is a known issue to me, it will be addressed at that time before a small problem becomes a big one. Share this post Link to post Share on other sites
