June 5th, 2017 at 10:07 am

Question: A buyer and seller are in a pending sales transaction. The buyer obtains a termite report from XYZ Termite Company. The buyer uses the C.A.R. Request for Repairs form to ask for the seller to pay for Section 1 work as specified in the attached XYZ report, and to provide a termite certification. The seller agrees. Is the seller required to use XYZ for the termite work and certification?

Answer: Most likely no, but the RR language is not 100% clear. C.A.R.’s Request for Repairs (Form RR) requires the seller to “pay to have Section 1 work completed as specified in the attached Pest Control Report dated ______ prepared by _______.” The most likely interpretation of that provision is that the seller must pay for the work specified in the XYZ report, not that the seller must use XYZ for the work. The RR further states that, “If Buyer requests either Section 1 or Section 2 work above, Seller shall, no later than 5 (or __) Days Prior to Close of Escrow, Deliver to Buyer a written pest control certification showing the corrective work has been completed.” Again, the most likely interpretation is that the seller need not use XYZ for the certification.

Of course, as buyers’ agents, we often want the seller to use a specific termite company because we know that the company is reputable and will take care of any problems that may later arise. In that situation, before you submit the RR to the seller for consideration, simply insert another sentence clarifying that the seller must use that specific termite company for the work and certification.

-Thank you to Nick Cacarnakis (Beverly Hills Manager) for suggesting this week’s legal tip.

Copyright© 2017 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of June 5, 2017. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.

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