Over the course of the next several blog posts, I will be sharing some sample forms that may be helpful to homeowners and investors working with contractors. If you have any forms or clauses that you find useful, please feel free to leave a comment below or private message me at HomeLandInvestment@gmail.com.
Here is an addendum that builds in various protections and penalties:
Repairs And Inspection Agreement
I agree to complete the repairs on the attached schedule in a manner acceptable to the owner and any city inspector by the completion date indicated and if I do not complete the repairs properly or on time, the owner may void my option to purchase and no earnest money will be returned to me if this occurs.
The owner will designate an inspector to come to the property and verify any or all the repairs have been completed on the attached schedule. When I request an inspection, I understand a trip to the house will cost me $100 per inspection, whether I pass or fail the inspection and it’s in my best interest not to order an inspection until all items applicable are 100% complete.
The fee for the inspection will be deducted from any funds being extended to me for materials, if applicable or collected on site if not.
If I fail the inspection, I must complete the items requested by the inspector within 10 days or order another inspection at an additional $100 fee and continue to do so until all items are complete and improved.
I’m aware the inspector may choose to inspect the house without my request in which case I am not responsible for the $100 fee.
I may not place any kind of mechanics lien on the property or cloud the title in any way. If I do so, I agree to pay a $10,000 penalty to the owner plus any and all other remedies allowed by law and release the lien immediately upon the owner’s request.
Property Address _________________________________________________________
As always, be sure to have any legal forms reviewed by your attorney or legal counsel, as I cannot advise on any legal matters.