Gas Line Inspections, Vacant Lots and Auction Contracts
Bill Clifford, Chair
Standard Forms Committee
Gas Line Inspection/Warranties
As an update for the new purchase contract, there has been a question of “Does the contract require a gas line inspection and a gas line warranty?”
The answer is no. If gas line warranties are available in your area, the contract provides a section for the Buyer to request a gas line warranty from the Seller. If gas line warranties are not available in your area, then a gas line inspection would be appropriate.
Some gas warranties require a gas line inspection and if needed, any repairs prior to issuing a warranty.
Some home inspectors, as part of their inspection will do a gas line “sniff test” for leaks. All home inspectors do not do “sniff tests”. Then, the Buyer can request, as part of the Request for Remedy, the repairs necessary to fix the gas leaks. Then, the gas warranty company issues a warranty.
Some gas warranties say, “if there is a leak found during the inspection and we have the house covered from the time it was listed we will fix the leak free of charge for the seller”.
The best advice is to understand what the gas line warranty companies require and what they cover. Then, advise your Buyer and let the Buyer pick the best arrangement for the Buyer.
New Contract for Vacant Lots/Acreage
The residential standard forms committee continues its work on the new contract for the purchase of vacant lots and raw acreage. It is designed to cover those items that are specific to land purchases. It will use the new purchase contract as a template and make the necessary modifications. The committee’s target date is to have the contract reviewed by the Bar Association starting in September (they do not meet June through August). Then, after the Bar Association is finished, it will go before the CBR Directors for approval. We hope to have the contract completed by late fall of this year.
Auction Contract
Also, the committee is working on designing an Auction Contract for properties that will be auctioned off as a form of selling properties. This contract will be out in 2005.
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