Buying a Relocation Owned Property
We want to assure your success when purchasing
a relocation listing. Each relocation company
has slightly different procedures, and brokers
follow laws and practices appropriate to the
State in which the property is located. Following
are typical questions regarding buying a relocation
property with answers that we hope will guide
you to a successful purchase.
How does buying a relocation property
differ from buying a home from a private individual?
The most significant difference is that you
are negotiating with a corporation rather than
an homeowner. Every decision is based on the
net results of the sale. While price is paramount,
every aspect of your offer is taken into consideration
including: the closing date, your financial
strength and contingencies.
Can I write an Offer subject to the sale of
my current home?
Relocation companies will not accept an offer
subject to the sale of another property. Most
relocation companies will consider an offer
that is subject to the successful closing of
the buyer’s property, providing there
is a signed contract and all contingencies have
been met. The relocation company will request
a copy of the contract on your property and
verification that all contingencies have been
met.
What information must I provide along
with my Offer to Purchase?
To expedite acceptance of your offer, obtain
and submit a pre-approval letter from a mortgage
lender to assure the relocation company that
you are financially qualified to complete the
transaction. Also, submit a buyer’s information
form with details about your employment, debt
and current home. Financial ability to perform
is critical to relocation company decisions.
What are extra addenda and inspections
I am asked to sign with a relocation property
Offer?
A priority for relocation companies is disclosure
of every detail known about the property. Toward
this end, each relocation company has their
own Addenda to the Offer that they ask you to
sign. Sometimes, the relocation company has
completed various inspections of the property
that are being provided to you, your signature
acknowledges your receipt and understanding
of the inspection reports. The relocation company
will not execute any contract before all appropriate
signatures and / or initials are made throughout
the Addenda and Attachments.
Does my mortgage lender require anything
special, if I purchase a relocation property?
No. Your lender will need a copy of your executed
Offer with all Addenda and Attachments, once
it is signed by the relocation company. A copy
of the executed Offer is a standard requirement
with any real estate mortgage application. If
you are writing a cash offer, a verification
of funds letter from your financial institution
will be required by the relocation company.
I understand that negotiations and/or
acceptance of my Offer to Purchase will be verbal
from the relocation company, and that it may
take a week or so before I receive a signed
copy of the contract. Is this correct, and is
it legal?
After you submit your written Offer to Purchase
it will be faxed or e-mailed to the relocation
company. Negotiations between you and the relocation
company will be verbal until an agreement is
reached between the parties. Once an agreement
has been reached, any required Counter Offer
will be drafted and signed by you. The relocation
company honors its verbal agreement with you,
but the agreement is subject to review of the
written contract to be sure no issues were overlooked
in verbal discussions. Your original Offer and
the Counter Offer will be sent via overnight
delivery to the relocation company for original
signatures. Most relocation companies require
that all parties move forward with contingencies
from the date of verbal acceptance.
Note: This is standard practice in
the relocation industry. It is suggested that
the acceptance date inserted in the Offer to
Purchase allow up to 7 days for negotiation
and mailing of contracts. If you have questions
regarding legal rights or status of your Offer,
you are advised to seek legal counsel for advice.
If the relocation company provides copies of
property inspections, should I still pay for
my own inspections?
Although the property is being sold “as
is” – in its present condition,
the buyer has the right to have the property
inspected by an inspector to determine the existence
of any structural, mechanical, or electrical
defects. Any defects noted in the inspection
report must be submitted to the seller in writing
according the Addendum dates. The relocation
company’s Addendum will explain the process
between buyer and seller for resolving inspection
issues.
A termite inspection report and a radon
report were included for the relocation property.
Does that mean there are termites and/or radon
on the property?
Not necessarily. Read the report(s) to determine
what the results of each inspection were. It
is general practice for relocation companies,
because they are dealing with the properties
in many climates, to include such testing as
standard procedure. If radon has been detected
the relocation company may elect to mitigate
by installation of a radon reduction system.
OR
Radon mitigation may be addressed by the relocation
company providing a type of guarantee. Typically
the terms of this guarantee are for radon testing
within the first year after closing. If levels
are at or above the EPA recommended level of
4.0 pci/l , mitigation will be completed at
the expense of the relocation company by the
contractor they name. This eliminates negotiation
of radon issues during the transaction, and
assures that you may address radon at a future
date.
Information provided is general in nature and
applies to most relocation transactions. Real
estate laws vary form state to state. Buyer
may want to seek legal counsel for specific
advice.
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