How is my contract contingent upon inspections when I have to check a box that states I'm accepting the property in its "as is" condition?
One of the most important things to know when buying a house in the state of Texas is that every single sale is an "as is" sale. Most people think only foreclosures and short sales are as is, but that's simply not true.
In the standard Texas, promulgated contract, there are two options to check. One option is to accept the property as is, while the other option is to accept the property as is as long as you do this and that repair. The problem with the second option is you don't know what repairs need to be done until you have inspections, so this option is very rarely, if ever, checked. Either way, both options state as is...
However, in Texas, we have this thing called the Termination Option, commonly referred to as The Option Period. This is a negotiabe period of time, normally 5-10 days, where the buyer offers the sellers so much money, typically around $100-250 depending on the amount of days they're asking for, to have the right to run inspections and then back out of the contract for any reason they want. Essentially, the buyer buys the right to terminate the contract for any reason with no explanation. Maybe they didn't like the inspection and it scared them. Maybe the seller wouldn't agree to any repairs that the inspection turned up. Maybe the buyer woke up on the wrong side of the bed and decided they didn't want to buy the house anymore. It doesn't matter as long as it's within this period of time.
If the buyer utilizes the Option Period and Opts Out, the buyer retains the earnest money. The only money the buyer is out is the Option Fee and the money spent for inspections. The form to terminate the contract is only signed by the buyer, and the seller does not have to release the buyer as it's automatic.
The Option Period is how you can buy a house "as is" but still be able to run inspections and ask the sellers for help with specific repairs.
If you're looking to buyer or sell a house in the Austin TX area, please contact me today, and we'll go over your goals together. I can help you put the entire Texas contract into perspective.
Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way.
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Copyright© 2011 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* All Texas Contracts are As Is... but You Can Still Have an Inspection Contingency * was first published on donnahomesblog.com.