What Is a Maintenance Agreement?

>A maintenance agreement is a contract between you and your real estate vendor that specifies ongoing maintenance services and other obligations. These services are typically minor repairs and replacements that would be required on a regular basis without being paid for. However, they aren't included in the purchase contract. This means that if you don't fulfill your maintenance agreement obligations, you could be on the hook for the cost of repairs or replacements.Maintenance agreements are a common addendum to real estate purchase contracts. They can be helpful for sellers who want to ensure that the property is adequately maintained throughout the ownership period. Buyers may also find maintenance agreements helpful because they can reduce their risk if the property needs repairs before the sale closes. However, maintenance agreements are not a requirement for buying a home and should not be a deal breaker if they’re not included in the purchase contract. The following article explains more about maintenance agreements and how they can help you in your real estate transaction.

What are the benefits of a maintenance agreement?

The main benefit of a maintenance agreement is that it can help you avoid unexpected expenses. If a vendor fails to properly maintain the property before the sale closes, you could be on the hook for repairs. You can use a maintenance agreement to ensure that the vendor is held accountable for making all necessary repairs and keeping the property in good repair.Maintenance agreements are also helpful when you’re trying to sell a home. If the property has been on the market for several months and the seller hasn’t been able to find a buyer, a maintenance agreement may entice prospective buyers to make an offer. Even if the property is in good condition and doesn't need repairs, a maintenance agreement can help you close the sale quickly. A prospective buyer may see a maintenance agreement as an added bonus and a sign that the seller cares about the property.

Drawbacks to a maintenance agreement

Maintenance agreements can be helpful, but you should only sign one if it benefits both you and the seller. If you’re buying a home and don’t include a maintenance agreement in the purchase contract, you can’t be held accountable for repairs. However, if you find out that the property needs repairs after you close the sale, the vendor may not be able to provide you with the necessary repairs. If the seller isn't able to provide the repairs, you may be on the hook for the cost.Another drawback of a maintenance agreement is that you may be required to pay a higher price for the property. If you’re buying a home that doesn't require repairs and the seller is asking for a maintenance agreement, it may be a red flag that the property isn't in good condition. If you’re willing to pay more for the home, you can negotiate to have the vendor provide you with a maintenance agreement.

When is a maintenance agreement required?

A maintenance agreement is only required if the vendor fails to properly maintain the property before the sale closes. If the vendor makes the necessary repairs and the property is still in good condition, you shouldn't have to sign a maintenance agreement. However, if the property isn't in good condition, you may be required to sign a maintenance agreement.If the seller fails to make the necessary repairs and fails to disclose that the property isn't in good condition, you may have a case for breach of contract. If you have a maintenance agreement, you can use it as evidence that the seller failed to uphold their end of the deal.

How to negotiate a maintenance agreement

If you’re buying a home that requires repairs and the seller isn't willing to provide these repairs, you can ask the vendor to sign a maintenance agreement. You should bring up the issue of a maintenance agreement when you’re discussing the sale contract. If you’re buying a home from a vendor and you don't have a maintenance agreement, you should ask the seller to add one to the contract.If the vendor refuses to sign a maintenance agreement, you can still get the repairs done. You can hire a contractor to make the repairs and then submit the invoices to the vendor. If the vendor refuses to pay for the repairs, they may be liable for the cost.

Conclusion

Maintenance agreements are a common addendum to real estate purchase contracts. They can be helpful for sellers who want to ensure that the property is adequately maintained throughout the ownership period. Buyers may also find maintenance agreements helpful because they can reduce their risk if the property needs repairs before the sale closes. However, maintenance agreements are not a requirement for buying a home and should not be a deal breaker if they’re not included in the purchase contract. The following article explains more about maintenance agreements and how they can help you in your real estate transaction.

Frequently Asked Question

What are the most common HVAC Problems?
When your HVAC takes an unexpected break, it is going to be a problem. Then you ask yourself, how did this happen? Review your HVAC maintenance history or the lack of it. Have you been religious in changing the dirty air filters? Commonly, it has something to do with its pilot or ignition. Otherwise, it could be the thermostat. If it has been serving you for a long time, then probably, it is a matter of mechanical wear and tears. Have you heard unusual furnace noises lately? That must be it. Have you smelled any burnt plastic? It could also be its fuses, tripped breakers, or a dirty condenser or evaporator coils. If you have any of these, better call a repair serviceman near you.
Why is an HVAC repair very expensive?
HVAC repairs are quite costly due to the expensive parts of most units. It also matters on the area where you live as this will vary on the cost of living as well as the size of your HVAC. It also takes time to do an HVAC repair because the technician has to go through his checklist when inspecting a unit. Thus, a per-hour fee on repair would indeed be very costly.
What are the signs that my HVAC is broken?
Have you felt the air seems warmer than usual? The airflow seems insufficient? Bad odors and unusual noises? Water leaks and high humidity? If yes, then you probably need to have your HVAC checked.
What does HVAC maintenance include?
HVAC maintenance includes coil cleaning, draining, an inspection of connections, thermostat function, refrigerant pressure monitoring, and motor operations.
What are the most common AC repairs?
Most AC repairs only need to have their Air filters replaced at least 4 times in a year. That is every 90 days or 3 months. Thermostat replacement ranks second, and then there’s defrost control, condensation drain, condenser fan replacement, compressor, coil cleaning, and capacitor replacement.