Tip #4 – Get on equal (or near-equal) footing with the “right to cure” defects
In the standard WI Offer to Purchase, any defects found during your inspection or testing are only required to be cured in a “good and workmanlike manner” with evidence of completion provided by Seller no later than 3 days before closing.
In a hot market where Sellers hold the leverage, this language can put a Buyer in the awkward position of having to just trust how those items get fixed.
For example, what is the definition of “good and workmanlike manner”?
Good question. It’s not defined.
And what constitutes a “defect”? The WI Offer to Purchase defines a “defect” on line 182 as “a condition that would have a significant adverse effect on the value of the Property; that would significantly impair the health or safety of future occupants of the Property; or that if not repaired, removed or replaced would significantly shorten or adversely affect the expected normal life of the premises.”
Not very specific. What does “significantly” mean exactly?
If you have to give the Seller the Right to Cure defects, consider directing your agent or attorney to insert some additional language that requires both Seller and Buyer to agree on the method used to cure any defects and the contractor hired.
You can also add that the work be completed and evidence of payment provided at least 7 to 10 days prior to closing.
The recurring theme in these tips is “allow enough time.” A bit of planning beforehand can keep you from compromising on important things before the house is yours. Visit our complete list of tips for a winning offer to learn more.
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