A buyer in Redding has a C.A.R. RPA with a financing contingency. The buyer's lender requires a satisfactory pest inspection as a condition of the loan. During the pest inspection, active termite infestation is found. Under the C.A.R. RPA, who typically pays for Section 1 termite work (active infestation treatment) in California?
Correct Answer
B) The allocation of Section 1 costs is negotiable between buyer and seller as specified in the C.A.R. RPA
Under the C.A.R. RPA, the allocation of pest inspection and termite treatment costs (both Section 1 for active infestation and Section 2 for preventive work) is a negotiable term between the buyer and seller. The RPA provides a section where the parties specify who pays for each type of work.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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