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10. HOME WARRANTY PLAN / AS-IS CONDITION OF PROPERTY.
Discussion.
The form has changed a little bit, and the Seller's warranties about the condition of the property have changed a lot. Essentially the Seller is no longer personally obligated to warranty that all the systems are functioning and all features are in their proper functioning state.
The Buyer can obviously still ask the Seller to repair a defect or correct a situation as a condition of the purchase; and the Seller can agree or disagree. But the property is now sold as is.
The seller is required to fully disclose all facts known by the Seller, latent or obvious.
The Buyer likewise has a period of time that can be used to thoroughly and completely inspect the property.
There's not much change in the Home Warranty provisions. Sections 10.2 and 10.3 survive Closing.
... and here are Section 10's -- beginning with the new REPC and followed by the old REPC:
new REPC:
10. HOME WARRANTY PLAN / AS-IS CONDITION OF PROPERTY.
10.1 Home Warranty Plan.A one-year Home Warranty Plan [ ] WILL [ ] WILL NOT be included in this transaction. If included, the Home Warranty Plan shall be ordered by [ ] Buyer [ ] Seller and shall be issued by a company selected by [ ] Buyer [ ] Seller. The cost of the Home Warranty Plan shall not exceed $ ____ and shall be paid for at Settlement by [ ] Buyer [ ] Seller.
10.2 Condition of Property/Buyer Acknowledgments. Buyer acknowledges and agrees that in reference to the physical condition of the Property: (a) Buyer is purchasing the Property in its “As-Is” condition without expressed or implied warranties of any kind; (b) Buyer shall have, during Buyer’s Due Diligence as referenced in Section 8.1, an opportunity to completely inspect and evaluate the condition of the Property; and (c) if based on the Buyer’s Due Diligence, Buyer elects to proceed with the purchase of the Property, Buyer is relying wholly on Buyer’s own judgment and that of any contractors or inspectors engaged by Buyer to review, evaluate and inspect the Property.
10.3 Condition of Property/Seller Acknowledgments. Seller acknowledges and agrees that in reference to the physical condition of the Property, Seller agrees to: (a) disclose in writing to Buyer defects in the Property known to Seller that materially affect the value of the Property that cannot be discovered by a reasonable inspection by an ordinary prudent Buyer; (b) carefully review, complete, and provide to Buyer a written Seller property condition disclosure as stated in section 7(a); and (c) deliver the Property to Buyer in substantially the same general condition as it was on the date of Acceptance, as defined in Section 23, ordinary wear and tear excepted. The provisions of Sections 10.2 and 10.3 shall survive Closing.
old REPC:
10. SELLER WARRANTIES & REPRESENTATIONS.
10.1 Condition of Title. Seller represents that Seller has fee title to the Property and will convey good and marketable title to Buyer at Closing by general warranty deed. Buyer agrees, however, to accept title to the Property subject to the following matters of record: easements, deed restrictions, CC&R’s (meaning covenants, conditions and restrictions), and rights-of-way; and subject to the contents of the Commitment for Title Insurance as agreed to by Buyer under Section 8. Buyer also agrees to take the Property subject to existing leases affecting the Property and not expiring prior to Closing. Buyer agrees to be responsible for taxes, assessments, homeowners association dues, utilities, and other services provided to the Property after Closing. Except for any loan(s) specifically assumed by Buyer under Section 2.1(c), Seller will cause to be paid off by Closing all mortgages, trust deeds, judgments, mechanic's liens, tax liens and warrants. Seller will cause to be paid current by Closing all assessments and homeowners association dues.
10.2 Condition of Property. Seller warrants that the Property will be in the following condition ON THE DATE SELLER DELIVERS PHYSICAL POSSESSION TO BUYER:
(a) the Property shall be broom-clean and free of debris and personal belongings. Any Seller or tenant moving-related damage to the Property shall be repaired at Seller's expense;
(b) the heating, cooling, electrical, plumbing and sprinkler systems and fixtures, and the appliances and fireplaces will be in working order and fit for their intended purposes;
(c) the roof and foundation shall be free of leaks known to Seller;
(d) any private well or septic tank serving the Property shall have applicable permits, and shall be in working order and fit for its intended purpose; and
(e) the Property and improvements, including the landscaping, will be in the same general condition as they were on the date of Acceptance.
10.3 Home Warranty Plan.The “Home Warranty Plan” referenced in this Section 10.3 is separate from the warranties provided by Seller under Sections 10.1 and 10.2 above. (Check applicable boxes): A one-year Home Warranty Plan [ ] WILL [] WILL NOT be included in this transaction. If included, the Home Warranty Plan shall be ordered by [ ] Buyer [ ] Seller and shall be issued by a company selected by [ ] Buyer [ ] Seller. The cost of the Home Warranty Plan shall not exceed $_______ and shall be paid for at Settlement by [ ] Buyer [ ] Seller.
I’m remarking on the new REPC changes as I see them. This isn't legal advice.
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Next up ...Section 17: ATTORNEY FEES AND COSTS/GOVERNING LAW and Section 18: NOTICES.
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