March 28th, 2016 at 10:16 pm
Question: My buyer has been in escrow for 3 weeks. We just got an amended TDS from the other side stating that the built-in dishwasher does not work anymore, even though it was working fine when the buyer entered into the purchase agreement. The listing agent said the seller is not required to repair the dishwasher because the seller provides no warranty for items included in the sale under paragraph 8B(6) of the RPA. The listing agent also said that if my buyer is unhappy about this, he can cancel. Is the seller required to repair the dishwasher?
Answer: Yes. First, the listing agent misquoted paragraph 8B(6) which actually states that the items included in the sale “are transferred without Seller warranty” and a transfer has not yet occurred in our situation. Second, paragraph 11 of the RPA is? more? on point. It? states that the property “is to be maintained in substantially the same condition as on the date of Acceptance.” Given that the dishwasher was working on the date of acceptance, the seller is required to repair it to return it to substantially the same condition as on the date of acceptance. Alternatively, the buyer may prefer trying to negotiate a credit from the seller in lieu of repair.
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