Stacy: Hello everyone and welcome to another episode of “Between Two Brokers.” You
guys are in for a treat because we’ve got a dear Schmoopy today.
Stacy: It’s Schmoopy time. Hold on. I lost it. No, I got it. Okay. Okay. Thank you so
much dear listener for writing and don’t forget to send your questions into podcast @smithspencer.com.
Stacy: Dear Schmoopy, this is long. I’m gonna read real fast. I just had a CL-100 done
during due diligence. And another one done within a week of closing. The inspector raved over the overall condition of the exterior of the house that it looked great down there nice and dry. I read the inspection and it did mention an old water ring under the master bedroom, some light fungal growth. The yes box for damage was checked, but I didn’t panic because it didn’t have past termite damage or current evidence of termites. So we get to the Friday before closing, the attorney’s office calls and asks if I will be getting the CL-100 clear before closing. Imagine trying to find a contractor to inspect, address issues and clear the CL-100 on a weekend before a Monday morning closing.
Don’t do Monday morning closings, y ‘all. Or Friday afternoon closings. Schmoopy, I know I messed up, but I was there for both inspections and was verbally given such a bright, sunny impression of the overall condition.
Okay. You also can’t take anybody’s word for anything. Can you take your dear listeners through the scenario and explain how CL-100’s work? I certainly learned my lesson, but the rest of your listeners would benefit from your explanation and okay.
Erin: Yeah. She knows she messed up.
Stacy: She knows she messed up. Yeah.
Erin: Yeah. So CL-100’s work like this.
There’s a list of questions and places that the inspector has to look at. Then there’s a column for yes boxes and a column for no boxes. If any of the yes boxes are checked other than something was inaccessible blocked by structures. So the yes boxes that are bad are high moisture moisture readings, active termites, non -active termites, damage, fungal growth, and then there might be like one more. But anyway, if any of the yes boxes are checked you’ve got to get a clearance letter or the buyers have to be willing to strike the CL -100 contingency from the contract in order for you to close.
Stacy: Which is why we do not write our contracts contingent upon a CL -100. The
mess that you’re dealing with would have been, would have been avoided if you would have asked for repairs during a due diligence period.
The other mistake here is that you don’t have Cynthia involved. Cynthia reads the report and says we don’t get the CL -100 cleared. That’s what she does and then she takes care of getting it cleared. So you need to have a transaction coordinator checking behind you. You have too many responsibilities and you’re there having conversations with your buyer and they’re decorating the house and you know it’s easy to get these things messed up but you can’t overlook anything.
Erin: Yeah and good inspectors will say oh it was you know nothing huge nothing bad
you know but you always have to read the inspection report and look for any issues that a) your buyers might have a problem with or b) that will keep you from closing like a yes checks box on a on a CL -100.
I think he was right in saying nothing’s a big deal because it’s not a big deal it
would probably be easy to get that cleared but just because he gave it a raving
review doesn’t mean you don’t have to read the reports.
Stacy: Yes and then the other thing is as a listing agent when anybody makes rights a
contract with me that’s contingent upon a CL -100 I strike through it and I tell them they have to do it during due diligence. That’s it. Like I don’t deal with this horseship, okay?
Erin: I also shame on the listing agent because they should know also, hey, we got a
CL-100, that’s not clear. We need a clearance letter, so two agents missed it.
Stacy: Yeah, well.
Erin: But it would have been, you need a Cynthia.
Stacy: You need a Cynthia, yeah. And that’s why you work for Smith Spencer.
Erin: But you know what? The lesson is in the sting and she will never make that
Stacy: That’s true, that’s what I tell everyone. Once you have been sick to your
stomach for a couple days because of a mistake you’ve made, it won’t ever happen again. It’s happened to me a thousand times.
Erin: Tuition in the school of life. And whenever I make a boo boo, I pay for it. I
come out of pocket to fix it.
Stacy: You make boo boo’s?
Erin: I think like one time I made a boo boo. (laughing)
Stacy: She’s so perfect. Anyway, anything else to add on that?
Stacy: Yeah. Okay, well thank you so much for writing in. Don’t forget to write your
questions into podcast@smithspencer .com. Keep them coming, we appreciate it so much. Don’t forget to rate, review and subscribe and tune in next time.