Requests for Repairs
Requests for Repairs
Buyer should always use the RR [Request for Repairs] and Seller use the RRRR [Seller Response and Buyer Reply to Request for Repairs] when negotiating any repairs to be completed by Seller.
RR [Request for Repairs] #1 [RR & RRRR to be in sequence.]
- Buyer lists requested repairs.
- If there is no enough room to list all of the requested repairs, the form will generate a TOA [Text Overflow Addendum].
- You may also attach a separate typed list [be sure to get both parties to acknowledge receipt of the attached list, even if they are not agreeing to do all of the repairs].
- Seller responds to the Buyer Request. [Note: As per contract, Seller does not have to respond; however it is usually done using the RR or RRRR.] Seller may check and one of the following options:
- ___Seller agrees to all of Buyer’s Requests and may check box:___(i)Buyer removes the physical inspection contingency and may attach a CR [Contingency Removal] form for Buyer to sign.
- ___Seller does NOT agree to any of Buyer requests.
- ___Seller responds to Buyer’s request on the attached form RRRR.
- If Seller checks the box: “Seller agrees to all of Buyer’s Requests,” then the Buyer should sign & date at the bottom of the RR and the process is complete.
RRRR #1 [Seller Response and Buyer Reply to Request for Repair]
Seller Response to Buyer Requests.
- Seller may may agree to do “All except . . .” listing the repairs they are not agreeing to do.
- Seller may agree to credit Buyer $_____ instead of doing any repairs.
- Seller may agree to reduce the purchase price instead of doing any repairs.
Buyer Reply to Seller Response.
- If Buyer agrees to the Seller Response, Buyer should sign in the “Buyer Reply” section.
- If Seller offers a credit, then an Addendum must be completed confirming the “credit towards Buyer’s closing costs,” which must go to the Lender for approval.
- In such addendum, always state that the credit to Buyer is for Buyer’s closing costs. NEVER state “in lieu of repairs.” A Lender will not accept a credit for repairs to be completed, but will accept a credit towards Buyer’s closing costs.
- If Buyer disagrees with Seller Response, Buyer checks box to withdraw RR #1 and make a new request – RR #2.
- Perhaps Buyer does not accept what Seller is not repairing.
- Perhaps, credit amount is not enough to cover anticipated costs for the repairs.
Remember that the RR & RRRR are not given to the Lender. In that regard, these forms are kind of like “worksheets” for negotiation purposes only.
Never “tie” the RR to the CR [Contingency Removal] stating: “Buyer removes all contingencies subject to the Seller agreeing to Request for Repairs.” This is unenforceable and is not to be done.
RR/RRRR process is to be completed with all negotiations need to be agreed to by all parties before a CR [Contingency Removal] is executed.