A seller told me she won’t make repairs to her property and she wants the MLS listing to state she will only consider offers that say the property will be sold “as is” in the blank in Paragraph 7D(2) of the TREC One to Four Family Residential Contract (Resale). The seller also refuses to let a buyer have the property inspected under Paragraph 7A or a termination option under Paragraph 23. Can the seller make these demands?

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  • A seller told me she won’t make repairs to her property and she wants the MLS listing to state she will only consider offers that say the property will be sold “as is” in the blank in Paragraph 7D(2) of the TREC One to Four Family Residential Contract (Resale). The seller also refuses to let a buyer have the property inspected under Paragraph 7A or a termination option under Paragraph 23. Can the seller make these demands?

While a seller can make conditions on accepting an offer or in permitting an offer to be submitted, these requirements would seem to be inadvisable.

Paragraph 7D(1) states that the “buyer accepts the property as is” at the time of the execution of the contract. Additional language in Paragraph 7D is unnecessary, but a seller could request you indicate on the MLS that the property is being sold as is.

Although a seller could refuse to permit a buyer to have inspections or a right to terminate under the termination option, it is generally not a good idea to try to prevent a buyer from having a right to freely inspect the home. Preventing a buyer from an inspection increases the seller’s risk of a subsequent claim that she withheld information about the condition of the property. Furthermore, most homebuyers are going to be reluctant to buy a home without a right to inspect the home and without an option to terminate the contract if they are not satisfied about the condition of the property. Permitting the buyer to inspect a property doesn’t obligate a seller to agree to repairs.

Discuss these points with your client. Explain you aren’t an attorney and you are prohibited from practicing law, and that she is asking you to make significant changes to the standard contract form that go well beyond a factual statement or business detail, which could venture into the practice of law. Therefore, she needs to hire an attorney to draft the provisions in the contract that she will want at that time.

Before the seller refuses to permit any inspections, suggest she discuss this with an attorney. It’s likely that her attorney will counsel her to permit inspections.

You could also consider refusing to accept this listing, so you don’t waste your time and resources listing a property that will be difficult to sell.

Source: TAR

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