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Prior to closing, it
is common for lenders to require inspections of the premises for
various types of conditions in order to ensure that the structure
is sound and that its systems are in good working order. Buyers
may also request inspections to make certain that the structure
and its operating systems and appliances do not have any critical
defects that were not known at the time they decided to purchase
the property.
Some of the many inspections
that can be performed are as follows: Septic Inspections - The waste
system is inspected by an engineer to verify the good working order
of waste disposal; Well Water - Test can be performed by engineers
to ascertain the quality of the water servicing the premises; Engineering
- An engineer examines structural soundness and describes electrical,
plumbing and similar systems; Pest Inspections - Private contractors
inspect the premises for infestation and possible damage caused
by termites and other pests.
Lenders often require
additional inspecting when making particular types of loans. Construction
Mortgage - When lending funds for new construction, the lender will
require an inspection upon the completion of each phase of the construction
before disbursing funds for the next phase. New Construction/Permanent
Financing - If recently constructed, the lender may require verification
that the construction is complete and that the premises are suitable
for occupancy.
It is advisable for the
buyer to re-inspect the premises immediately prior to the closing
to be certain that it is essentially in the same condition as it
was at the time the contract was executed. Buyers should check to
see that no significant damage has been done to the premises in
the intervening time and that the fixtures and items to be included
in the sale have not been removed from the premises.
Portions of
this page are reprinted with the permission of CATIC.
The information
you obtain at this site is not, nor is it intended to be legal advice.
You should consult an attorney for individual advice regarding your
own situation.
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