I’m the listing agent on a property. We are currently under contract and used the 2017 version of the Louisiana Residential Agreement to Buy or Sell.
The buyer conducted their inspections. After the inspections, the buyer’s agent sent me the inspection report – that’s it. The buyer’s agent didn’t submit a request for repairs – the agent only submitted the inspection report.
The due diligence period is set to expire in 24 hours.
What do I do with this? Do my sellers now have 72 hours to respond? Please help!
This scenario happens more often than you’d realize. Sometimes, it’s the result of an inexperienced buyer’s agent not fully understanding what he/she needs to submit following the inspection to negotiate necessary repairs.
Other times, you’re dealing with a very savvy and experienced buyer’s agent who’s trying to get the sellers to bid against themselves.
Based on the information that you’ve provided, the buyers have not complied with Lines 179-181 of the Purchase Agreement. According to Lines 179-181:
Option 2: The BUYER may indicate in writing the deficiencies and desired remedies and the SELLER will within seventy two (72) hours respond in writing as to the SELLER’S willingness to remedy those deficiencies (“SELLER’S Response”).
There is a two part requirement on the part of the buyer: the buyer has to indicate the deficiencies (which they have done by submitting the inspection report) AND the buyer has to request specific remedies!
Once the buyer requests specific remedies, then the seventy-two (72) hour for seller’s response begins.
Since the buyers have not complied with Lines 179-181 of the Purchase Agreement, the buyers run the risk of having to accept the property in its current, “AS IS” condition, unless the buyers formally request repairs or cancel the contract within the due diligence period.
Please see also Lines 192-195 of the PA, wherein the following is stated:
FAILURE TO GIVE WRITTEN NOTICE OF EITHER TERMINATION OR DEFICIENCIES AND DESIRED REMEDIES TO THE SELLER (OR THE SELLER’S DESIGNATED AGENT) AS SET FORTH IN LINES 155 THROUGH 181 WITHIN THE INSPECTION AND DUE DILIGENCE PERIOD SHALL BE DEEMED AS ACCEPTANCE BY THE BUYER OF THE PROPERTY’S CURRENT CONDITION.
(You know the LREC is serious about something when they put it in all caps!!!)
Right now, the buyer’s agent is risking their clients potentially being locked into this deal and not getting any repairs completed at seller’s expense.
But it’s the responsibility of the buyer’s agent to know the steps in the negotiation process and to keep up with deadlines. At this point, the sellers need to sit and wait for the buyer’s next move.