Changes to the Residential Purchase Agreement & How They Will Affect Your Escrow
Inspections and Requests for Repairs
There are some new provisions and procedures regarding inspections and repairs in the Residential Purchase Agreement (RPA). Here are some things you should be aware of:
Paragraph 7 deals with who will pay for specific inspections and is very important when it comes to the Termite Inspection Report. There will no longer be a Wood Pest Addendum (WPA) associated with the contract. That means that within Paragraph 7 you will need to specify what inspections will be made and who will pay for the them. This paragraph does not cover who will pay for the repair(s), if any.
Escrow holders will need this information to be sure we have all required inspections accounted for and to charge the appropriate party for the cost of the inspections.
Request for Repairs
Paragraph 14B deals with contingencies, but also states that the buyer must use the Request for Repairs form (RR) to request the seller make and pay for repairs to the property. For example, if there is a termite inspection required and the inspection report identifies recommended work to be performed, the buyer must request that the seller make the repairs according to the proper form (RR), however the Request for Repairs will not be required for our Escrow file. Real Estate Agents must advise the escrow holder who will pay for any repairs shown on invoices deposited during escrow. Escrow will require either an addendum to the RPA or an escrow modification signed by the buyer and seller stating who will pay for the repairs.
We realize that this will change the way we have processed inspections and repairs in the past and we will certainly have the correct forms and requirements in our escrow file before we close your escrow.
Brandon Taitano is an Escrow Officer with West Coast Escrow and works with many real estate agents in the San Diego region. If you or anyone you know needs escrow service, call Brandon at 858-578-7323 or message him on LinkedIn.He is also one of our preferred service providers on Janet’s List app which you can download for iPhone or Android.