New construction: as is vs subject to

[ebennett]

So I am doing a 1004 purchase for a new build and the house has been completed to the builders contract except for the sodding/landscaping. I made the report "subject to completion plans", made note of the agreement for landscaping, and submitted it.

Here in Ohio, putting down sod in the winter is pretty difficult so the client kicked back and said the money will be put in escrow holdback and to put a cost to cure on the report for the landscaping.

My question is, once I put that cost to cure as a condition adjustment for the cost of landscaping, does that mean I change the report to "as is" now, or keep it "subject to", because it still technically isn't done to their agreement.

Thanks for insight, I know it's a rookie question but this is my first new build over the winter.

 

[Terrel L. Shields]

So what is the lender - FNMA? FHA? VA? or in house (IAG)?

 

[ebennett]

So what is the lender - FNMA? FHA? VA? or in house (IAG)?

FNMA, sorry. Details that should have been included

 

[Dublin ohio]

I have run into same situation on the last 5 completions. Some do not have driveways because asphalt plants close down in the winter. I always mark no on the 1004d. Explain. Sometimes my clients want a estimate of a "cost to cure" for escrow purposes. But that is stated in the 1004d. I have one client that gives me their typical draw percentage for those items. So I will state that subject is 98% or 99% complete. It is their decision to escrow. I would not add cost to cure to my original report. It is after the fact. If they want you to change the report to "as is". It would be a new assignment and appraisal.

 

[Dublin ohio]

After rereading your op. You could change it to as is with new signature date and cost to cure. Kind of makes no sense. Unless lender is going to release escrow without a 1004d in the future

 

[glenn walker]

So I am doing a 1004 purchase for a new build and the house has been completed to the builders contract except for the sodding/landscaping. I made the report "subject to completion plans", made note of the agreement for landscaping, and submitted it.

Here in Ohio, putting down sod in the winter is pretty difficult so the client kicked back and said the money will be put in escrow holdback and to put a cost to cure on the report for the landscaping.

My question is, once I put that cost to cure as a condition adjustment for the cost of landscaping, does that mean I change the report to "as is" now, or keep it "subject to", because it still technically isn't done to their agreement.

Thanks for insight, I know it's a rookie question but this is my first new build over the winter.

There is no cost to cure on a escrow hold back those funds will not be released or disbursed to the Builder or borrower until its been completed. So big deal if its a new assignment change the signature date and be done.

 

[J Grant]

So I am doing a 1004 purchase for a new build and the house has been completed to the builders contract except for the sodding/landscaping. I made the report "subject to completion plans", made note of the agreement for landscaping, and submitted it.

Here in Ohio, putting down sod in the winter is pretty difficult so the client kicked back and said the money will be put in escrow holdback and to put a cost to cure on the report for the landscaping.

My question is, once I put that cost to cure as a condition adjustment for the cost of landscaping, does that mean I change the report to "as is" now, or keep it "subject to", because it still technically isn't done to their agreement.

Thanks for insight, I know it's a rookie question but this is my first new build over the winter.

No need to make a cost to cure adjustment in grid. Just explain, the subject is complete except the sod/landscape, cost to cure aprox X $ range to put sod down, and the $ for it will be held in escrow for sod installation when ground thaws. Change it to as is. THE END.

 

[J Grant]

So I am doing a 1004 purchase for a new build and the house has been completed to the builders contract except for the sodding/landscaping. I made the report "subject to completion plans", made note of the agreement for landscaping, and submitted it.

Here in Ohio, putting down sod in the winter is pretty difficult so the client kicked back and said the money will be put in escrow holdback and to put a cost to cure on the report for the landscaping.

My question is, once I put that cost to cure as a condition adjustment for the cost of landscaping, does that mean I change the report to "as is" now, or keep it "subject to", because it still technically isn't done to their agreement.

Thanks for insight, I know it's a rookie question but this is my first new build over the winter.

they changed their agreement when they agreed to put the amount of $ in escrow for sod/landscape.

 

[Tim Hicks (Texas)]

Keep it "subject to" with a cost to cure. That is what it is. They will send you out to do a final when sod is completed to close the escrow. They want a cost to cure to know what to hold out from the builder.

 

[jay trotta]

So I am doing a 1004 purchase for a new build and the house has been completed to the builders contract except for the sodding/landscaping. I made the report "subject to completion plans", made note of the agreement for landscaping, and submitted it.

Here in Ohio, putting down sod in the winter is pretty difficult so the client kicked back and said the money will be put in escrow holdback and to put a cost to cure on the report for the landscaping.

My question is, once I put that cost to cure as a condition adjustment for the cost of landscaping, does that mean I change the report to "as is" now, or keep it "subject to", because it still technically isn't done to their agreement.

Thanks for insight, I know it's a rookie question but this is my first new build over the winter.

Highlighted for your review;
1) Per builders contract was the "landscaping" a line item with a cost ?
2) What did you put as a "cost to cure" ? Is that supported by the builders line item ?
3) Why would You change "subject to" if it is not completed ?

Just some thoughts for you to consider; did an adddition/alteration in 2020 and will be doing a Final Inspection this week (it was subject to) - sometimes things take a while, we have no control over that.

Come back soon, be sure to wear armorall, it can get heavy here.......lol