I am not a lawyer which is a good thing. I just have a feeling that some day there will be litigation because a seller did not have the water turned on for a home inspection.
Many of the "bank owned" properties have been winterized and the water has been turned off by the city because in most cases no one has or will pay the water bill.
The city will come and turn it back on but the property owner has to pay a fee for the service and ask to have the water turned back on. It takes a few days and it is the property owners responsibility not the buyers.
When a buyer makes a home purchase contingent on an inspection both the buyer and seller sign a inspection contingency addendum. On the inspection addendum in the first paragraph it says that the buyer will have a complete home inspection at their own expense. On line 14 of the same document the seller agrees to give the buyers and their inspector reasonable access to the property.
The words complete inspection are not defined any where. Home inspectors consider an inspection of the plumbing, heating and water heater part of a complete inspection. They can not perform a complete inspection with the water turned off and they can not turn it back on if it has been shut off by the city. Some inspectors will not turn on the water inside the home. I have had to do that myself on occasion with the seller permission of course.
The banks know that they own the property, and they know that the water has been shut off, and they know that they signed a legally binding contract that allows for a complete inspection and yet in most cases they do not have the water turned on. The agents who list these homes have the same information but in most cases they will do nothing. It seems that is is up to the buyers and their agent to make it happen.
I won’t go into what could happen if the time period as outlined in the contracts for an inspection runs out. technically if no inspection takes place during that time period the contingency runs out and the buyer and seller have a bi-lateral legally binding contract for the sale of the home.
When buying any home please have it inspected by a professional. If it is a bank owned property have your agent write on the inspection addendum that the water must be turned on for a complete home inspection to take place. Have the inspection period start the day the water is turned on instead of after all parties have signed the purchase agreement.
To all you home sellers out there be you individual or corporate, please have the water turned on for the inspection! If the purchase is FHA the FHA appraiser will NOT inspect it with the water off and the loan will NOT be funded.
I didn’t mean to raise my voice, have a nice day.
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Hi Theresa,
You have quite a point. In our standard form contract in California we have the following language in the Buye’s Investigation paragraph, “Seller shall have water, gas, electricity and all operable pilot lights on for Buyer’s investigations and through the date possession is made available to Buyer.”
Of course, it still happens that a seller, bank or otherwise, slips up but at least the have the contractual responsibility.
Great post.
John Hickey
If at all possible, have the water turned on a week before the home inspection and try to actually use the plumbing for a while. A house that has been vacant with the systems not being used is liable to seem ok during the brief inspection and behave differently after a week’s use.
I know it’s not likely to be viable, but it’s worth a shot.
Thanks for the very helpful hint. I have done short sale transactions but not too many foreclosure transactions so this was a GREAT heads up to help me serve my clients better.
I even like John Hickey’s contract language and may use that in my “additional provisions” since it isn’t standard WI contract language.
Jim – the inspectors say the same thing they would like the water on at least several days before the inspection.
John – I like it.
Kara – short sales and foreclosures have changed much in our jobs.
Like buying a house isn’t stressful enough when you have all the information. Banks are going to have to figure out a better way to sell their foreclosed props.
Same deal in CT. The other frustrating thing is when sellers have their basements loaded with junk and inspectors don’t have clear access to electrical panels, oil tanks, you name it. I often ask several days in advance for the sellers to clear a path, only to find out when we arrive for the inspection that it hasn’t been done. Frustrating…
Good advice but didn’t FHA change their standards to be more in line with conventinal?
Thanks
I think you have given some important information regarding water bill policy ,which may come into affect soon.I too think that its the responsibility of home owner to get it inspected before he sells the property.
ugh……….im a buyer, finally found the house i really want, but it needs to be inspected..inspection cant be completed because the bank wont turn the water on.. they claim they dont have to because the property is bein sold as is is this true?
We are buying a home in foreclosure. It came with a very large water bill. Are we liable for that bill?
Thank You
Joy – Laws are different in each state. Here in Minnesota if you bought title insurance that may help. Sellers are responsible for these bills unless the purchase agreement states otherwise.