Question: During the inspection period the Buyer discovers
that the air conditioning unit is not in working condition as
required by Lines 271-275 of the Contract. The Seller and Buyer
enter into an amendment to the Contract that, in lieu of the Seller
repairing the air conditioning unit to working condition, the
Seller will pay $1,000 to the Buyer. Can this amendment to the
Contract eliminate the Seller’s warranty that the air conditioning
unit will be in working condition at close of escrow?
Answer: Yes. Unless an amendment to the Contract is unlawful,
the Seller and Buyer have the right to amend the Contract. No
law requires that the air conditioning unit be in working condition
at close of escrow. Therefore, the Seller and Buyer can amend
the Contract to eliminate this warranty obligation.
