Most properties sold by First Preston HT and all HUD-owned properties we sell, are sold in as-is condition. It pays to engage the services of a licensed home inspector to make sure you fully understand the condition of the property you are buying. Since the condition of the properties are not warranted nor do our clients that own the properties pay for corrections of defects or repairs, we strongly advise all potential buyers to obtain a home inspection. Ask your real estate agent or call us at 1-866-56HOMES if you have questions regarding scheduling a home inspection. The process may vary according to the owner of the property.
For HUD-Owned Properties: Your Real Estate Agent must complete an inspection request form (which will be sent, with a copy of the executed contract after the bid has been awarded) and submit it to the appropriate HUD Field Service Manager (FSM) contractor office.
Your real estate agent will work directly with the FSM for permission to have the utilities turned on, submit deposit and/or re-winterization fees. All the coordination will be with the FSM for the collection of these deposits, utilities and other timing issues for the inspection. The FSM will only allow the utilities to be turned on, if the property does not require any repairs to activate the utilities AND it is safe to do so.
Remember, all HUD homes are sold as-is with all faults. As the buyer you may have an inspection done, at your cost – only after the contract has been executed and your real estate agent has received a copy of the fully executed document and received written permission from the FSM to conduct the inspection. HUD will not pay for the repairs indicated in the inspection and the buyer in strictly prohibited from making any repairs on the property until after closing.
For Other Properties: The buyer may complete a home inspection, at the buyer’s expense. The inspection must be completed within 10 days from the time the buyer’s offer is accepted by the seller. Unless negotiated and specified in the executed agreement, any inspection-related repair requests constitutes a change in contractual terms, and opens up all terms for renegotiation. The seller may choose to accept the changes, or to negotiate using methods such as an increase in the purchase price of the property to offset the repair, or by modifying other concessions. If any repairs are required by the buyer’s lender, these repairs will be done at the buyer’s expense.
The seller may also reject the request for contract changes. The buyer may elect to proceed under the original terms provided in the contract, if the contract has not expired. The seller may direct termination if mutual agreement on changes is not reached.