Every day we receive numerous questions about key components of the FRBAR Residential Contract for Sale and Purchase (Standard and AS IS) – namely Inspection, Finance, Property Maintenance, Assessments, etc. However, rarely do we questions surrounding Section 10 (Disclosures) of the Contract. Most readers just view paragraphs 10(a) – 10(j) as merely things for the Buyer to be aware of; but what happens when one of those disclosures actually becomes a sticking point in your deal? By way of example, let’s assume you have a Standard FRBAR Contract and your client decides to conduct a Radon test during the inspection period. Assume that the Radon test comes back with elevated radon levels. Your Buyer now wants to get out of the contract or mandate that the Seller remediate the issue. Unfortunately, the Standard FRBAR Contract does not help a Buyer in this instance. The Radon Gas disclosure is a statutorily required disclosure when dealing with the sale of real estate. The disclosure does not require the Seller to actually remedy the problem or allow the Buyer to terminate the Contract if one is present. Further, Section 12 (Property Inspection and Repair) of the Contract does not appear to provide any relief for the Buyer as well, as this section does not address elevated radon gas matters. So how do you prevent something like this from affecting your real estate closing? We would suggest that you have your Buyer consult with a local real estate attorney prior to executing a contract to craft language that modifies Paragraph 12(b)(ii) in a way that requires the Property to be at or below acceptable radon gas levels.
Berlin Patten Ebling, PLLC
Article Authored by Jamie A. Ebling, Esq. email@example.com
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