It’s almost time to close on the home. Woo Hoo! Your commission check is on its way. You plan to take your clients on a walk-thru so they can confirm that the requested repairs have been made. They can also confirm that the home is in the same or better condition than it was on the day they made the offer.
That is all that the walk-thru confirms. End of Story.
The Verification of Property Condition form (VP) is to be used to list anything noted at the walk-through before you close on the home. Buyers can note repairs that have not yet been made or any new issues that have arisen. However, this form is not an agreement between the buyer and seller that the seller will make any additional amendments or repairs. And, the form specifically states, “a final inspection is not a contingency of purchase or sale.” Specifically: if all of the contingencies have already been removed, then buyers cannot hold up the closing based on something that they saw on the final verification of property condition.
Of course, as a real estate professional, it is your job to make sure everyone is happy and negotiate with the other agent and his (or her) client to remedy any new problem that has arisen. However, don’t think that if you wrote down that the property now has a broken window that this becomes an agreement with the seller to repair the broken window. A separate written agreement needs to be made in order to assure that the seller will pay for the broken window.
This article comes on the heels of several recent experiences with agents and their use of the VP form. If you or any agents you know have questions about the best use of the VP form or any other form in the real estate transaction, feel free to contact the transaction coordinators at Transaction 911.