With Halloween just around the corner, it is only appropriate we save the most grotesque, frightening, and potentially deal breaking subject for last; mold! Given the climate of the tropical paradise we call home, this lurking menace is ever prevalent, ready to strike when you least expect it. In the previous version of the FAR/BAR contract, Section 12(b) provided no protection from the nightmares this monstrosity sought to inflict on your happy homebuyers. No longer will this invasive terror keep your clients up at night! Have no fear, the Mold Rider is here! This new addition provides expansive protection from this Halloween horror and allows your clients to rest easy knowing that if the home is haunted with mold, they can seek the protection of the newest rider. Let’s take a look at some of the highlights this newest elixir has to offer.
-This rider is specific to the standard version of the FAR/BAR contract, as the AS-IS allows for the buyer to conduct any form of inspection during their inspection period.
-The inspection must be conducted by a “qualified and licensed home inspector, contractor, or other professional. . .”
-A Mold Inspection Period is provided for, with the default timeframe being 20 days. Once the inspection is complete, the buyer must deliver the inspection report to the sellers within the Mold Inspection Period.
-The rider enables the buyer to select a dollar amount that they are willing to pay to remedy any mold infestation and/or damage. If the inspection report determines that the repair cost exceeds that dollar amount, the buyer has the ability to cancel the contract by delivering written notice to the Seller within the Mold Inspection Period.
-If the buyer fails to cancel the contract or conduct the inspection in the timeframe given, the mold contingency is waived and the nightmare continues.
Unfortunately, due to the hot and humid climate, this potential ghoul has the innate ability to haunt any home at any point during the year and wreak havoc in any real estate transaction. Whereas Section 12(b) of the contract does not provide for the inspection of this pesky nightmare, the rider enables buyers to inspect and put at ease any worries or concerns that mold may be lurking in the corners of their new home. This addition provides an adequate avenue for buyers to increase the scope of their inspection while providing them a way to cancel the contract should the cost of repair exceed the amount they are willing to spend to remedy the issue.
This concludes our series on the latest changes to the FAR/BAR contract. As always, should you have any questions or concerns regarding any of the changes discussed in recent weeks, we encourage you to reach out to your local trusted real estate attorney. Happy Halloween!
Jacob Van Duren, Esq, email@example.com
Berlin Patten Ebling, PLLC
This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.
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