What does the Terms of Sale mean in a real estate listing?
Yes that is generally what that means. The listing agent could say that for usually one of two reasons … 1) this is the most important one – FHA loans require that the house pass an FHA inspection that covers safety, structure and mechanicals. If the house is not wired properly, has a non-working furnace, has peeling paint, has cracks in the foundation, missing fixtures, etc., it won’t pass the inspection. If a house doesn’t pass the inspection, generally the seller is required to repair the items prior to a closing. The listing agent may know up front that the house will not pass an inspection and that the seller is not willing to repair any items that don’t pass. You will almost always run into this on foreclosure listings. 2) The listing agent is what I call “old school” and doesn’t know enough about FHA loans so s/he automatically thinks they are problems. It used to be that FHA loans were only used for people with absolutely terrible credit so they were considered “shaky deals”.
