Purchasing a house? Know what you'll sign

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Posted on Mon, Mar. 27, 2006

Purchasing a house? Know what you'll sign

BY DEB GRUVERThe Wichita Eagle

http://www.bradenton.com/mld/bradenton/news/nation/14194006.htm

Bradenton Herald - FL

The recent court case of a Wichita house infested with mold is a

strong reminder that consumers need to understand the documents they

sign when buying a house.

The Kansas Court of Appeals recently overturned a judgment against

Ron and Tyler, who sold a house in 1998 to Bill and Jeanine

. Ron Tyler is a co-founder of the Residence Inn chain, and

Bill is a former chief executive of Co.

The es sued in 2003 after discovering mold was growing in

walls of the stucco house on Perth Court near 13th and Oliver. It

was so bad, they claimed, that they had to move out.

A jury ruled in their favor in 2004 and ordered more than $1 million

in damages. But the Court of Appeals overturned the ruling because

the buyers signed a property acceptance agreement, a document saying

they accepted the house in its current condition " and will make no

further claims or demands upon the seller or his agent... . " A

lawyer for the es says he expects a further appeal to the

Kansas Supreme Court.

The document the es signed is standard at residential real

estate closings, say Wichita real estate agents.

But there are a lot of steps before that point that can help protect

consumers.

When someone decides to sell a house, he or she fills out what is

called a property condition report. It's then that the seller should

reveal whether the house has had problems such as roof leaks,

foundation issues or plumbing woes.

" You should carefully review the property condition report, " said

Alan Huffman, president of Key Management and the Wichita Area

Association of Realtors. " Review that and be sure you're comfortable

with what's on there. If anything is noted, look at it yourself. "

Huffman also recommends that buyers get a house inspection, which is

optional and typically costs less than $500.

An inspector will examine the house you are considering buying and

look for problem areas. He or she will prepare a report for the

buyer's review, noting any recommended repairs.

House buyers should, if possible, be present at the inspection.

Huffman recommends working with a certified house inspector. Find

out how long the inspector has been in the business. Ask for

references.

Major red flags in houses include signs of settling such as cracks

in walls and the foundation and water stains beneath windows and on

ceilings.

" Look at the equipment such as the water heater and furnace, "

Huffman said. " Even if you're untrained, you can tell if they are

new or really old. "

After the inspection, your next step is to negotiate repairs. The

seller may not want to bother hiring professionals to fix problems

and could agree to lower the price.

If you agree to have repairs made, your next step is to have the

repairs inspected, experts say.

Make sure you are satisfied with the repairs before signing off on

anything.

Another key step is to walk through the house just before closing to

make sure it is in the same condition as when you last saw it.

If the house is relatively new -- less than 25 years old, for

example -- you also can buy a warranty that will cover some

problems. Make sure you understand the limits of any warranty. Some

sellers offer the warranties as an incentive.

Huffman said the mold case is " obviously a lesson for everybody

buying a home to be sure what you're signing and be careful what

you're signing. "

" I think it was the right decision from what I've heard, " he said of

the case.

Raudonis, chief executive of the Wichita Area Association of

Realtors, said she would " rely on a professional to ask questions. "

" They do this every day, " she said. " Education is part of their job.

I don't think a first-time home buyer knows what questions to ask. "

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Reach Deb Gruver at (316) 268-6400 or dgruver@....