Should I get a home inspection?
Yes. Very few people have the expertise to fully understand all the physical aspects of a home. However, buying a home inspection service is not unlike buying any other service in that there are good and bad inspectors at fair and unfair prices. Make sure the inspector you choose has a New Jersey State Home Inspector license. New Jersey law is quite restrictive in granting the Inspection License, so there is some comfort in the skill and integrity of the license inspector. However, a state license is no guarantee of good or fairly priced service. Our firm also suggests asking other industry professionals for a referral. A few examples are real estate brokers, lawyers, mortgage brokers, and title agents.
Be advised that home inspectors will demand that you sign a rather lengthy disclaimer form broadly covering several aspects of what is typically thought to be within the home inspection service. Our firm suggests that you obtain the home inspector’s disclaimer form early in the process to allow for the opportunity to include the disclaimer reach in your selection criteria.
For more information visit: www.ashi.org
What is a “Home Inspection Contingency Clause?”
An inspection contingency clause is language frequently included in the sales contract that temporarily prevents the Buyer from being legally obligated to buy until after the home has been inspected by a licensed home inspector. In the event that the home has expensive deferred maintenance, the Buyer can cancel the contract and get all deposit monies back. Because of this termination right, the Seller commonly demands that the inspection be preformed quickly to minimize the time that the house is off the market while the Buyer still has the contractual right to purchase.
In some cases, disputes arise over small inexpensive items identified in the home inspection report, for example, a crack in the driveway. Sellers may feel as though Buyers are purposely leveraging their termination right as a means to reduce the contract price and are not truly concerned with minor imperfections. Buyers often feel as though they are paying a lot of money for the home and deserve to receive it in excellent condition.
The key to this issue is steadfast negotiation of the home inspection language prior to signing the contract. A good lawyer can make all the difference in the outcome of this issue.
What if the home I wish to buy has one of the following?
Asbestos – an older home may have asbestos-containing materials. The home inspector should identify possible ACM and consideration should be given to a special environmental inspection. There are regulations on disposal of these materials and use of a licensed contractor is recommended. Improper removal or disposal can create a hazard rather than eliminating it. For more information: see http://www.epa.gov/asbestos/pubs/ashome.html
Underground fuel oil tank – The home may have an oil furnace now, or may have been converted from oil in the past. If there is an underground oil tank, and leakage occurs, the homeowner is responsible for an environmental clean-up which can be costly. The state of New Jersey has a program for decommissioning oil tanks properly. Many buyers will request that seller remove the tank and the state DEP give a passing inspection prior to closing. For more information: see http://www.nj.gov/dep/srp/unregulatedtanks/
Private well – Well water can be contaminated or have unhealthy naturally occurring chemicals such as arsenic. Sellers of homes served by well water are required to have the water quality tested by a certified inspector and the test results provided to buyer. There are special filtration systems that can be installed (and then must be maintained). For more information: see http://www.state.nj.us/dep/pwta/
Septic system – septic systems can develop various problems and require regular maintenance. Therefore, it is important to have the system inspected and determine when it has most recently been serviced. A septic company (not the regular home inspector) is needed to perform this evaluation. For more information: see http://www.state.nj.us/dep/dwq/owm_home.htm
Our broker has told us that the home we are interested in would be a “short sale” … how does that affect my purchase?
In the current economic conditions, with prices for real estate dropping, many families are in the position of owing more on their home, through first and/or second mortgages, than the home’s present market value. The home can still be sold, subject to a “short sale addendum” to the contract that states that seller is not obligated to sell unless their lender consents (as a practical matter, this is the only way you would obtain clear title to the property) and sets a deadline for such approval.
The good news is that many lenders are willing to negotiate, so these deals are possible; however, the approval process can take 4-6 additional months and is not completely certain to be granted. Until lender approval is received, there is a risk that your purchase will fall through.
What is an “off-site condition”?
The term off-site condition refers to a site near the subject property that has been identified by the New Jersey Department of Environmental Protection as contaminated. In some cases, the mere existence and/or the ancillary affect of such a site can negatively impact the value of the subject property. So, the Buyer should know if any such site exits close to the home they seek to buy.
New Homes – the Buyer of a new home is protected by state law, which places a disclosure burden on the Builder/Seller to provide the Buyer with either the information or instructions on how to obtain the information on the existence of any off-site conditions.
Previously owned homes – there is no direct state law protection. Some contracts will include language in regard to off-site conditions, while others do not. Some Sellers provide information on off-site conditions in the seller-disclosure statements. However this is somewhat rare because often times the Sellers do not know or find it easier and safer to skip this issue since disclosure statement cover only “known items”.
For more information visit: www.nj.gov
What is Megan’s Law? New Jersey law authorizes the Division of State Police to make information about certain sex offenders available to the public over the Internet. Buyers may be interested in this information as a safety precaution. For more information visit: www.nj.gov prior to contract
