Archive for the ‘gcaar’ Category

"AS-IS" IS "AS-IS" For Termites

[. . . All clauses in this Contract pertaining to Property condition, termites or compliance with city, state or county regulations are hereby deleted from this Contract. . . .] – AS-IS para. #3, Addendum of Clauses, GCAAR Regional Sales Contract
Yes, it means what it says. Read it, live it, and breathe it when you set out to present your next “As-Is” sales contract.
  • It means that if the purchaser discovers infestation and structural damage resulting from wood destroying insects – tough luck – purchaser pays for the treatment and repairs.
  • It means para.#16 of the Regional Sales Contract, “Termite Inspection” is DELETED – POOF! GONE!

Caveat: A seller cannot hang his/her hat on the “As-Is” clause if the seller intentionally or negligently misrepresented a material condition or fact; or if the seller fraudulently concealed a material condition or fact; or if the seller made a false promise of a character likely to influence, persuade, or induce.


Location Survey – WHY?

July 15, 2009 1 comment

The GCAAR Regional Sales Contract makes only one reference to the survey and is found in para.#19 as follows: “The title report and survey, if required, will be ordered promptly . . . .” Note the key phrase “IF REQUIRED.” What does that mean?

“IF REQUIRED” means if required by the purchaser’s lender. Nearly all mortgage lender underwriting will require the title insurer to issue a lender’s title insurance commitment without exception to survey matters. In other words, a lender will not accept a title insurance policy without coverage for survey matters.