DON'T
BOTCH THE HOME INSPECTION RESPONSE
NOTICE AND DELIVERY PROVISIONS VARY IN MD, DC, and VA
We recently had an issue involving a property located in Montgomery County. The parties were in the process of negotiating the Home Inspection Contingency. The agent representing the buyer sent a repair list in writing (as an attachment signed by the buyer) via email to the agent representing the seller. The listing agent responded by forwarding to the buyer's agent an email communication between himself and his seller client agreeing to provide a credit toward repairs for the buyer.
Was this response proper under the Contract?
In order to answer this question we need to read the appropriate addenda in the contract. They are very different in MD, DC and VA. In all three jurisdictions, Notice must be in writing. In MD and DC, Delivery of Notice can be sent to either the Seller/Buyer or the agent representing them. In VA, Delivery of Notice is to the Seller/Buyer at their property address, fax or email, with "Courtesy" (not required) copy being sent to the agents. In MD, DC and VA, Notice may be delivered via email but in MD and DC there is also an additional requirement the email must include an "attachment with an actual copy of the executed instruments being transmitted."
In our case this difference is very important. By only providing the email communication without the repair list as an attachment, the listing agent did not deliver proper notice. Pursuant to the Home Inspection Contingency in the Addendum of Clauses, "Failure of either party to respond within 3 days after Delivery of Notice from the other party will result in acceptance by both parties of the terms of the most recent Notice." By not responding properly pursuant to the jurisdictional addendum, the listing agent put his client in a bad position; a position which could result in the Seller's obligation to complete all of the repairs on the Buyer's list. Ouch!
Your partners at KVS are always available to answer your contract questions, so don't hesitate to ask us if you are in doubt. Whether current or new forms we are here to put you and your clients in a good position and keep you out of a bad one.
This article was created by Kantoroom, Vitale + Stanton,
LLC and was republished with their permission. http://www.kvslawgroup.com/
NOTICE AND DELIVERY PROVISIONS VARY IN MD, DC, and VA
We recently had an issue involving a property located in Montgomery County. The parties were in the process of negotiating the Home Inspection Contingency. The agent representing the buyer sent a repair list in writing (as an attachment signed by the buyer) via email to the agent representing the seller. The listing agent responded by forwarding to the buyer's agent an email communication between himself and his seller client agreeing to provide a credit toward repairs for the buyer.
Was this response proper under the Contract?
In order to answer this question we need to read the appropriate addenda in the contract. They are very different in MD, DC and VA. In all three jurisdictions, Notice must be in writing. In MD and DC, Delivery of Notice can be sent to either the Seller/Buyer or the agent representing them. In VA, Delivery of Notice is to the Seller/Buyer at their property address, fax or email, with "Courtesy" (not required) copy being sent to the agents. In MD, DC and VA, Notice may be delivered via email but in MD and DC there is also an additional requirement the email must include an "attachment with an actual copy of the executed instruments being transmitted."
In our case this difference is very important. By only providing the email communication without the repair list as an attachment, the listing agent did not deliver proper notice. Pursuant to the Home Inspection Contingency in the Addendum of Clauses, "Failure of either party to respond within 3 days after Delivery of Notice from the other party will result in acceptance by both parties of the terms of the most recent Notice." By not responding properly pursuant to the jurisdictional addendum, the listing agent put his client in a bad position; a position which could result in the Seller's obligation to complete all of the repairs on the Buyer's list. Ouch!
Your partners at KVS are always available to answer your contract questions, so don't hesitate to ask us if you are in doubt. Whether current or new forms we are here to put you and your clients in a good position and keep you out of a bad one.
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