Home-Buying Process:
Home Inspections
Limits of Liability
If the inspection meets your satisfaction and you choose to purchase the house, you and the seller will agree on the limit of liability. A limit of liability states a dollar amount the seller agrees to pay for repairs prior to the purchase. Your inspection report will state which repairs are needed. The seller will pay for repairs up to the liability cap. If the repairs needed exceed the cost of the liability cap, the seller is not obligated to pay for repairs. At the same time, you, as a buyer are not obligated to purchase the house. This is why it is important that you do your homework when choosing a home inspector and make sure you are informed of all repair expenses. Also, be certain that all details of “What ifs…” are stated in the contract.
References:
New Mexico Mortgage Finance Authority. (2003). You can own your home workbook. Author.
New Mexico Environmental Department. (2004). New Mexico Radiation Control Bureau; Indoor radon outreach program [Electronic version]. Retrieved September 14, 2004, from http://www.nmenv.state.nm.us/nmrcb/radon.html.
Shaw, Bryan W. & Denny, Monica, L. (1999). L-5337 Home safety – Radon gas [Electronic version]. Retrieved September 14, 2004, from Texas A&M University, Cooperative Extension Web site: http://tcebookstore.org/pubinfo.cfm?pubid=1110.
U. S. Inspect. (2004). Termite inspection [Electronic version]. Retrieved September 14, 2004, from http://www.usinspect.com/FAQs/TermiteFAQs.asp.
Unites States Department of Housing and Urban Development. (2001). Termites and other wood-destroying insects. [Electronic version]. Retrieved September 14, 2004, from http://www.hud.gov/offices/hsg/sfh/circ/atl/atlrev2.cfm.
Unites States Environmental Protection Agency. (2004). Lead in paint, dust and soil. [Electronic version]. Retrieved September 14, 2004, from http://www.epa.gov/lead/.
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