We have a condo transaction in which a seven-year-old pest report was referenced in an obscure clause in an obscure addendum, and, of course, the lender is asking for both the report and a “clearance.” The highly skilled and seasoned selling agent is flabbergasted (to put it mildly) that the lender would ask for something so ridiculous.
But this is just the nature of the business right now, and reason for another reminder: No matter how “AS IS” a transaction is; no matter how many times you plaster “AS IS” all over a contract, if any reports are referenced anywhere in a contract (no matter how obscure the report or the reference), the lender will likely call for that report, and a “clearance” (even if the transaction is clearly “as is”).
Do not reference reports anywhere in an “as is” contract. If a report must be referenced in an “as is” deal, reference it in addenda that the lender will not see.
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