Pre-Settlement Inspection
1. Please be sure to schedule a pre-settlement inspection for the day
before or the day of closing. I recommend that you take a notebook and
a video or instant camera to the pre-settlement inspection, so that you
may record details of any defects you find. What you should be looking
for at the inspection and documenting with notes and camera are any
changes in condition or damages that may have arisen since your home
inspection, or that may have been caused by the sellers when they moved
out, or that were obstructed by, e.g., rugs or furniture, when you saw
the house before.
2. You may want to repeat the actions of the inspector who performed
your home inspection, e.g., run water in sinks and tubs, flush
the toilets, open and close windows and doors, turn on and off lights,
appliances, etc., to make sure that everything is working.
3. Make a note of the exact location of damage, noting in which room
and which wall or area (if you're good with compass directions, N, S,
E, W is good, otherwise identify by the name of the room, location
relative to doors, windows, outside wall, inside wall, etc., whatever
will be specific enough that you will know and they will know).
4. Any issues discovered at the inspection should be discussed with the
sellers and their attorney at the settlement, with a view toward having
any
defects corrected by the sellers or having the sellers make an
adjustment
in the form of a credit or a payment (at settlement) to you to cover
the
costs of repairs.
5. If the items are many and it is difficult to come up with a cost of
correction, it would be advisable to arrange for an escrow of a part of
the Sellers' proceeds,
to be held by the title company. The escrowed money would then be
disbursed
to pay the buyers' costs to repair, and any balance remaining in the
escrow
would then be released to the sellers. An appropriate agreement should
be
written and signed by all parties at the settlement. The escrowed
amount
should be shown on the HUD-1 Settlement Statement.
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Law Offices of
Miriam N. Jacobson
Suite 1519, 1900 John F.
Kennedy Boulevard
Philadelphia PA 19103-1341
PA 215-569-2415 NJ 856-858-7775
Fax: 215-701-5910
Copyright 2008
Miriam N. Jacobson
miriam@mnjlaw.com
www.mnjlaw.com