Termite Repairs and the As Is Clause in GCAAR Sales Contract
Hello this is Deirdre Brown your settlement agent serving the District of Columbia, Maryland and Virginia. Today I am going to answer a question that was presented to me on my website.
I had a listing agent reach out to me, she said that there is an As-Is ratified contract. However there are termites. The buyer had a termite inspection and the report shows the presence of termites . The buyer is requesting that the seller pay for the termite treatment and repairs. 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 the GCAAR sales contact, Clause 12 states that if there is a termite inspection that shows evidence of termites then the seller will need to have the repairs or treatment conducted 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, Cluse 3 A and checked the box removing the termite inspection clause, the seller has no obligation under clause12 of the GCAAR sales contract. It was removed from the contract.
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