Buyers

The information provided here are merely suggestions. Please do not assume them as facts until you verify them independently.

While selling a home on your own may be a good idea if you're willing to work at it, BUYING a home on your own can be disastrous. It's hard to know what lurks within. Beautiful paint and strategically placed items can hide many defects. Even professional home inspectors can't detect many hidden or obscure problems. Buying a bad home is not easily remedied.

However, if you're a handy sort and can repair most everything yourself, you might come out ahead if you exercise these legal rights you have.

Always check with an attorney regarding legal questions as laws do change and can vary from from state to state.

Inspection Period	In California, the buyer has 17 days from the day the offer is accepted to inspect the property. This period can be negotiated to any length agreeable to both parties, but make sure it's in writing! During this period, buyer should have the property inspected by licensed professionals. Any problems discovered is followed by a "Request for Repairs". In CA, sellers are not required to repair anything but must disclose all material facts regarding the property. When seller says sale is "As Is", it really means "As Disclosed" legally. Within this inspection period, buyer can cancel the offer for any reason without penalty. After this period, buyer may lose the deposit money if the offer is cancelled in breach of contract.
Seller's Disclosure	Seller must disclose all material facts about the property in writing within 7 days of the accepted offer. If seller fails to meet this deadline, buyer may request an extension of the inspection/discovery period accordingly or cancel the offer. Items for disclosure include, but not limited to, any and all defects; problems unique to neighborhood; recent insurance claims; appliances and other items included in the sale price; roof condition, etc. This list should be extensive. After all, buyer should know exactly what he/she is buying. If seller fails to disclose everything properly, buyer has 3 years to seek legal action regardless of intent. If buyer can show that seller knowingly hides material facts, buyer can sue seller for fraud which carries a much stiffer penalty.
Loan Contingency	Most buyers take out a mortgage to pay for the purchase. It's wise to stipulate in the offer that loan contingency is in effect until funded. This protects the buyer should you run into problem with the loan, which happens frequently. When stipulating loan contingency, buyer should indicate the maximum interest rate and points he/she is willing to pay along with the amount of the loan. Should lender later says that the loan will have a higher rate or point, buyer can opt out or agree to pay the higher costs.
Natural Hazards	Seller is required to provide disclosure regarding any natural hazard such as flood zone, earthquake zone, proximity to airport, presence of toxic waste, etc. Because of the complexity and extensive research needed for this type of disclosure, it is usually provided by a professional service, paid by the seller. (Seller and buyer should make sure that the company used for this disclosure is fully insured against errors and omissions.)
Title Insurance	Choosing a good escrow officer is your best bet. He/she will make sure that the title is legally, accurately and properly transferred and properly insured. After all, you don't want to find out later that someone else has claim (partial or whole) on your property.
Selling Price	This is rather subjective and hard to pin down. It's really the point where seller and buyer meet. However, a professional appraisal is required by lender before approval of the loan. Appraisal can be paid for by either seller or buyer, but is usually ordered by the lender. Some lenders may accept an appraisal recently done but most lenders have strict requirements and will order their own appraisal according to their rules. Lenders want sufficient equity before making the loan. Lower risk means better interest rate, while acceptable higher risk means higher interest rate and points.