CAN HEIRS SELL PROPERTY "AS IS" WITHOUT TERMITE INSPECTION?

DEAR BOB: I have an elderly relative who has owned several rental houses for many years. These properties are not well kept. When she passes on and the heirs sell the properties, will the heirs have to have termite inspections or can the heirs sell them "as is"? --Larry W.

DEAR LARRY: Most states do not require a pest control (termite) inspection. But a few do. A local realty agent where the properties are located can tell you if a termite inspection is required.

But virtually every home buyer insists on such an inspection so you should expect the buyers to include inspection contingency clauses in their purchase offers.

Heirs frequently sell inherited properties "as is." The very good reason is the heirs usually don't know the condition of the properties so they don't want to incur liability for incorrect statements.

An "as is" sale means the seller must disclose to the buyer all known property defects but the seller doesn't have to pay for any repairs.

However, offering a property for sale "as is" is like waving a red flag in the buyer's fact warning "watch out there might be something seriously wrong with this house."

A better approach is to put a property on the market for sale, disclose all known defects, and see what happens. If the buyer's professional termite inspection reveals serious damage, then the seller can decide to either give the buyer a repair credit or not.

(For more information on Bob Bruss publications, visit his
Real Estate Center).

Copyright 2006 Inman News