Is having termites a valid reason to back out of a contract when buying a house?
Posted on February 17th, 2010 by admin
My realestate agent says the termites are not a "major defect".
You’re real estate agent’s lying to you. They just want their commission. Look, here in California it’s the law that the house must have a termite inspection before the close of escrow. Also, the seller is responsible for making all repairs. Don’t get suckered into buying something that’s not livable.
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February 17th, 2010 at 8:48 pm
I don’t know if you can get out of it but you can certainly postpone it and require the seller to fix the problem…consult a lawyer if you can.
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February 17th, 2010 at 9:24 pm
Termites are not a major defect since the seller can have the house tented and all the lilttle bugs will die. Besides most houses have some sort of termite infestation…so no, its not in any way a valid reason to back out of a purchase contract.
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February 17th, 2010 at 9:45 pm
Laws are different in different states, however if you are the buyer of the home, and the fact that the home had termites was not disclosed to you before the purchase agreement then yes, you can back out of the purchase, however, if the house is paid for and you are moved in you must prove the termites were there before you purchased.
Hope this helps
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February 17th, 2010 at 10:25 pm
It all depends on where you live, and what you have signed so far. If you bought the home contingent on a home inspection, and the home inspection showed termites, than you should be able to back out. There are a lot of variables, but if you have not closed on the home yet, and did not know about the termites, you should be able to back out. Again, all depends on the laws in your state.
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February 17th, 2010 at 10:47 pm
yes, that is a reson you can back out if you were not told of the situation. Many people do it when they get the inspection done on the house. It is one of the most common reasons.
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February 17th, 2010 at 10:59 pm
If it’s in Southern California, all houses will have termite problems. Make sure you the buyer gets a good pest control. There should be a warranty for the first year and look for all the problems you can find and have them fix it.
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February 17th, 2010 at 11:49 pm
You’re real estate agent’s lying to you. They just want their commission. Look, here in California it’s the law that the house must have a termite inspection before the close of escrow. Also, the seller is responsible for making all repairs. Don’t get suckered into buying something that’s not livable.
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February 18th, 2010 at 12:01 am
You will get mixed answers on this.
Everything hinges on the timing of the home inspection – a must have if you want negotiating power in any home purchase.
Contract back-out will depend on the level of termite damage found in the inspection.
If it is treatable you have grounds to negotiate on the price of the house to compensate for the costs of removing the termites and fixing the damage.
If it is severe and the house cannot pass an inspection you may be able to back out as the seller must bring the house up to code before it can be sold. Severe termite infestation could be grounds for termination of negotiations.
Best I can do with this general question, hope this helps though.
I went through this termite business when I bought an old colonial in 2004, we got one free year of termite service and repairs.
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February 18th, 2010 at 12:40 am
TOTALLY!
Unless the seller will completely finance the process of removal and replace/replace for any damage to the property regarding that issue.
Most times, the will reduce the price of sale and "sale as is" .
SO depending on the amount of damage, it may be a great deal.
Only YOU know that one!
Get several bids for services and a trusted home inspector to go behind the walls, floors and the trees in the yard.
First thing- remove all shrubs away from the house by at least 5 feet, not one thing should touch the house.
Good luck- we live in the south and not one house is without them, its just part of the annual maintenance that you must do. So take that into consideration and put at least two services in that bid… it will help ya out a the bargaining table.
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February 18th, 2010 at 1:17 am
If u can, don’t buy the house! Termites r a nightmare! And they are almost impossible to get rid of! The damage they cause is devastating. These people have not had a swarm eat through a wall.
I woke up one morning & the termites came in through the kitchen. It was like a horror movie!
There was a layer of flying ants on the floor slowly moving towards me, refusing to die!!
Remember those r just the ones that made it into the living area…there r millions that r hidden away deep in the wood eating their way through.
Get out of the deal or have them exterminate to your satisfaction.
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February 18th, 2010 at 1:48 am
It depends on what is written in your contract. Most form realtor contracts have termite clauses. Most of the time the buyer has the right to have a termite inspection performed in addition to or as part of a home inspection. If there are termites or termite damage the seller must remediate and if they fail to do so then the buyer can back out and get all of their money back.
If the contract doesn’t specifically address termites but does allow a home inspection for major defects, then termites are definitely considered a major defect. If left unchecked they can destroy a house.
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February 18th, 2010 at 2:05 am
First you need to give the seller reasonable time to correct the problem. If they cannot remedy the problem then yes, you can back out. Bottom line is the lender requires a clean termite report or else they will not lend on the property. This is the most simple answer you will get. If you are leary of your Realtors answers, ask thier broker.
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February 18th, 2010 at 2:30 am
It depends on the severity of the infestation and the damage done.
Houses that have been treated can have evidence of former termite activity which won’t get you out of the contract.
If it currently has termites, is the owner willing to treat it? Is there much damage?
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February 18th, 2010 at 2:52 am
It is major, BUT, just have the seller fix the damage and get rid of the termites… If the damage is very extensive, you might want to get out of the contract.
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http://www.choicefinance.net/
February 18th, 2010 at 3:26 am
-Whether you can withdraw from the contract or not depends on the terms of your contract. (If unsure, have a real estate attorney look at your contract.)
There are some contracts, that have clauses that allow the buyer to cancel if certain conditions are not met. If the inspector finds A TERMITE INFESTATION is a clause that allow you to get out of the deal without penalty.
The Residential Purchase Agreement and Receipt for Deposit contains several provisions that discuss what will happen in the event the sale does not go through.
OH SUSANA!!!!Good luck, do not buy that house, and find another RE Agent!! He/she is a major defect interested only in the commission.
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