There always seems to be confusion when it comes to functional defect, also known as working or cosmetic condition. This issue typically comes up when the parties have received the inspection report. Buyers like to consider everything a defect and sellers don’t want to consider anything.
Here is FAR 9 definition; “working condition” means operating in the manner in which the item was designed to operate. “Cosmetic conditions” means aesthetic imperfections that do not affect the working condition of the item, an example of a few of those items the FAR 9 lists are pitted marcite, worn spots, caulking in bathrooms and cracked mirrors. While other contracts may include bathroom caulking because it will eventually cause water damage, other contracts do not include missing or torn screens.
To cut down on the confusion read the “Warranty and Repair” section of the contract being used in the deal to clarify it for you and have buyer and sellers refer to it when they have questions.
Here is FAR 9 definition; “working condition” means operating in the manner in which the item was designed to operate. “Cosmetic conditions” means aesthetic imperfections that do not affect the working condition of the item, an example of a few of those items the FAR 9 lists are pitted marcite, worn spots, caulking in bathrooms and cracked mirrors. While other contracts may include bathroom caulking because it will eventually cause water damage, other contracts do not include missing or torn screens.
To cut down on the confusion read the “Warranty and Repair” section of the contract being used in the deal to clarify it for you and have buyer and sellers refer to it when they have questions.
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