Termite Repairs and the AS IS Clause in GCAAR Sales Contract

Termite Repairs and the AS IS Clause in GCAAR Sales Contract

In this video Deirdre P Brown answers a listing agent's question. Does a seller have to make termite repairs if the GCAAR Sales Contract is AS IS?

TRANSCRIPT

Hello this is Deirdre Brown your settlement agent  serving Maryland, DC and Virginia. Today we're going to talk about a question that was presented to me on my website close with dee dot com.

I had a listing agent reach out to me she said that she has a ratified contract where the buyer wrote in the contract AS IS. However there are termites. They had a termite inspection and termites will come back. They are asking the seller to repair the wood. She wants to know under the contract, this is a GCAAR Sales Contract,  does the seller need to pay for it. 

The answer to the question is maybe.  What I mean by that is in the GCAAR sales contact, Clause 12 states that if there is a termite inspection that the seller would need to do the repair based on the recommendations of the termite company. However, if the buyer wrote the contract AS IS by using the AS IS Clause in Addendum of Clause A, that paragraph  removed the termite inspection clause from the sales contract and therefore the seller will not have to make repairs.

if you have more title related questions you can reach out to me at closewithdee.com

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