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How to help a buyer who won’t accept the property in its present condition

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A worker hitting the corner of an exterior wall with a sledgehammer

11/24/2015 | Author: Editorial Staff

My buyer client doesn’t want to accept the property “as is” in his offer on the One to Four Family Residential Contract (Resale). He would rather wait until after the inspection to list specific repairs he wants the seller to fix. Can I just leave both boxes in Paragraph 7D blank, or can I check Paragraph 7D(2) and write in Repairs to be listed following inspections?

Neither. Leaving both boxes blank in Paragraph 7D or altering the contract terms by adding language in Paragraph 7D(2) that doesn’t list specific repairs could violate Texas Real Estate Commission rules.

The buyer should only choose Paragraph 7D(2) if he knows of specific repairs that he wants the seller to complete at the seller’s expenses. Otherwise, the buyer should check Paragraph 7D(1).

Most buyers in this situation will also choose to pay a termination-option fee as provided by Paragraph 23 in exchange for the right to terminate the contract for any reason within a negotiated number of days. During this termination-option period, an inspection can be performed, and if specific repairs are identified, either the parties can negotiate to amend the contract to address these items or the buyer can terminate the contract.

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Categories: Legal
Tags: repairs, as is, paragraph 7

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Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on Any legal or other information found here, on, or at other sites to which we link, should be verified before it is relied upon.

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