“Drive by only?” “Offer subject to inspection?”

“Drive by only? Offer subject to inspection? What? Are you kidding me? I can't see the property? How can I write an offer?”

This has often thrown buyers for a loop!

 Usually agents will modify or add some verbiage into the offer stating… “Buyer(s) have not seen the property, and this offer is subject to inspection.” However, this is actually redundant and unnecessary.

Fear NOT! "ALL" offers on a standard California Residential Purchase Agreement (C.A.R. Form RPA) and Residential Income Property Purchase Agreement (C.A.R. Form RIPA) are subject to *inspection!

*Unless you remove or somehow modify paragraph 14.B /(C.A.R. Form RPA) or paragraph 19.B/(C.A.R. Form RIPA). These paragraphs are often modified for aggressive offer tactics, but seldom removed entirely.

Q: So why is seeing the property restricted this way?

A: The most prominent reason is to minimize tenant coordination (Usually requiring a 24-hour written notice per the standard Residential Lease/C.A.R Form LR) and disruption. (Tenants can be stressed by showings and the future uncertainty.)

The seller(s) don't want to coordinate with one, two, three, etc., tenants to show the property unless buyer(s) are serious and, in some cases, deemed qualified by the seller(s).

So, the bottom line is... fear not investors and property ladder steppers, write your offers and let them fly. These are the three most common outcomes of this scary and blind offer scenario:

1) You love it! Good thing you wrote an offer.

2) YOU HATE IT! Quit or cancel your contract. If the listing agent and seller(s) went to the point of actually accepting and returning an accepted offer to you, then make sure you go through the simple formality of canceling in writing, Cancellation of Contract (C.A.R. Form CC). Again, this is a right afforded the buyer in paragraph 14 per the C.A.R Form RPA-CA and paragraph 19 C.A.R. Form RIPA.

3) Something in the middle. You want it (IF) the price was better or certain repairs are agreed upon by seller(s). Well, it’s time to negotiate. I hope you have a good agent. :-)

Please let me know via email if you found this interesting? pmk@usamoves.com

Usamoves CalDre# 01395096

2017 Usamoves All rights reserved. CalDre#01395096

Disclaimer: This article is meant to generally inform at a basic level and by no means is deemed guidance to any principle who we do not directly and currently represent. Readers agree to hold harmless Paul Kubisen/ Broker / Usamoves LLC from and against any and all liability and or loss as a result of using information without the consul of a Real Estate Broker.