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Is it legal for a listing agent to with hold a prior inspection report that shows major problems? To not even disclose that an inspection has been done?
The only reason we found out that the house had already been inspected, was that we just so happened to choose the same inspector that had looked at the house when it first came on the market. The inspector gave us the origonal report which was very thorough and noted what needed to be done to correct the problems he found. NO effort had been made to correct the problems, unless you count an attempt to cover up/hide some termite damage in the floor joists. Many of the problems found required major work to be done by a contractor.
The listing agent gave us a property disclosure when we went under contract, and none of the problems found by the inspection were noted in the disclosure. Everything was checked "No Problems" or "Unknown". But now we have found out that yes there are problems and yes they did know.
We are out of the contract but we are very upset with this listing agent and thinking about filing a complaint with the R.E. Commission. This has wasted our time, our agents time, our LO's time, our insurance agents time, our inspectors time and it has cost us money. Several other houses we were interested in are now off the market and we've lost valuable time and oppertunities. I understand that things pop up to kill a deal, but this feels like we were flat out lied to and strung along because the agent was perfectly aware of the problems and failed to disclose them.
I should add that the listing agent is trying to pass this house off as acceptable for USDA and VA financing (it will not qualify for these loans with the problems it has).
Unfortunately in most every state disclosure laws mean nothing as there are many ways to get around them and the bad real estate agents are experts at doing it. You should file a complaint with the agents licensing board regardless of what your final goals are for doing it. It is that type of agent that gives the entire industry a very bad name.
When you file the complaint with the licensing agency keep in mind that no state licensing agency (even in Texas) has the powers to force the agent to compensate you for your losses regardless of their size large or small. However if you push it properly the licensing agency can play a large role in convincing the agent or broker to at least compensate you for any money out of pocket such as your inspections, etc., that you incurred. As long as you properly word the complaint and provide supporting information then the agent or broker compensating you will help in their favor when the licensing board gets ready to admnistratively punish them and determine the fine amounts.
Even if you get no monetary compensation from the licensing board complaint you will also have the knowledge that you helped weed out another dirt bag agent!
Is that legal for the inspector go give the buyer a report from another buyer?
I don't know about other states, but here, the original buyer paid for the original inspection report. It sounds to me, solely based on what the OP says, like the inspector, upon realizing that he'd already inspected the house (and when was this? How long ago?), simply gave the new buyer the old inspection report without performing a new inspection (OP, did he charge you for an inspection and actually do it or just give you a report that someone else had paid for and which thus belonged to them?).
Is that legal for the inspector go give the buyer a report from another buyer?
It depends on the state. The OP is in Wyoming where they apparently have no licensing or oversight for inspectors. In Texas the inspectors have to follow a strict confidentiality law and can not release the report, or any details, to anyone else unless the inspector has the approval of their client. Many of these inspectors have it in their inspection agreement contract that the buyers sign and the buyer does not realize how that clause can affect them.
Here in Texas the agents are not held by any such confidentiality law when they are handed an inspection report performed for a previous buyer, regardless if they were part of the transaction or not. In the case of listing agents if they are handed an inspection report that makes a bad house sound good many will put their little cover page on it, another page describing the house, and use it as a marketing tool hoping that the next buyer will rely on it and not have their own inspection. Some of the buyer agents will even try to convince their clients not to have an inspection as well claiming the house was already inspected and why would the buyer want to waste more money on their own inspection.
When it is all said and done, and the poor buyer calls me to help, I get to see these crap reports and hear the stories how their agent and the seller's agent colluded to deceive them into buying the house. To many of those type agents around and they make everyone in the real estate deal look real bad!
It depends on the state. The OP is in Wyoming where they apparently have no licensing or oversight for inspectors. In Texas the inspectors have to follow a strict confidentiality law and can not release the report, or any details, to anyone else unless the inspector has the approval of their client. Many of these inspectors have it in their inspection agreement contract that the buyers sign and the buyer does not realize how that clause can affect them.
Here in Texas the agents are not held by any such confidentiality law when they are handed an inspection report performed for a previous buyer, regardless if they were part of the transaction or not. In the case of listing agents if they are handed an inspection report that makes a bad house sound good many will put their little cover page on it, another page describing the house, and use it as a marketing tool hoping that the next buyer will rely on it and not have their own inspection. Some of the buyer agents will even try to convince their clients not to have an inspection as well claiming the house was already inspected and why would the buyer want to waste more money on their own inspection.
When it is all said and done, and the poor buyer calls me to help, I get to see these crap reports and hear the stories how their agent and the seller's agent colluded to deceive them into buying the house. To many of those type agents around and they make everyone in the real estate deal look real bad!
As a buyer's agent I can say that I have NEVER seen one of these. I have seen pre-inspection reports (and recommend them, but not in order to "fool" the buyer) done by the seller so that there will be no ugly surprises for the seller during a buyer's inspection and so that if something turns up they can get estimates at leisure and decide whether to do the repairs or price accordingly without the pressure of an option period, but I've never seen a previous buyer's inspection (unless you mean one done for the seller when they were a buyer).
What exactly do you do, jbiggs, that buyers call you for help?
Most REO agents specifically tell Buyer agents to not send them any reports.
Most all agents, not just reo, try to tell the buyer agent not to send the report and just cut and paste what the buyer wants fixed. They do this so they do not have to try defending a disclosure complaint later. It seems to be something they teach agents in their training in Texas, and probably every other state as well!
By the way I do recall another article in your TAR rag that specifically dealt with the issue of seller agents who delete inspection reports that are sent to them and later tried claiming since they did not read them they, and their client, were not responsible for knowing the contents of the report. Another one your TAR leagle beagles said to!
As a buyer's agent I can say that I have NEVER seen one of these. I have seen pre-inspection reports (and recommend them, but not in order to "fool" the buyer) done by the seller so that there will be no ugly surprises for the seller during a buyer's inspection and so that if something turns up they can get estimates at leisure and decide whether to do the repairs or price accordingly without the pressure of an option period, but I've never seen a previous buyer's inspection (unless you mean one done for the seller when they were a buyer).
I'm talking about bad reports both from previous buyers and these ignorant (deceptive?) inspectors who perform glowing reports for sellers to use as marketing tools. They're rampant up here in the DFW area! The agent will take a glowing report and put it on display at the house so potential buyers can pick them up and take them away with them as part of a marketing package.
What exactly do you do, jbiggs, that buyers call you for help?
I do all types of things for the buyers, before and after they already own the money pit! If you wrap up everything I do into one title it would be "Well Informed Consumer Advocate". All of it legal so don't bother worrying if I am violating yours or any other licensing laws. Can't very well be a consumer advocate if I'm violating laws now can I?
I wasn't worried at all about you violating any licensing laws - what on earth did I say that made you think that? It just occurred to me that you are so obviously bitter and biased about agents and that you say you see something all the time that I've never seen even once (a previous buyer's inspection report) and that you speak of buyers coming to you for help that perhaps you were in a business that only sees the very small segment of the industry that is bad and are also one of those people who thinks that that one segment represents the whole. It's understandable, of course, but biased, nonetheless.
I do note that you oh so carefully avoided answering a direct question about what you do to help buyers, though, that they come to you after the fact (and now you say before). Why would that be?
Most all agents, not just reo, try to tell the buyer agent not to send the report and just cut and paste what the buyer wants fixed. They do this so they do not have to try defending a disclosure complaint later. It seems to be something they teach agents in their training in Texas, and probably every other state as well!
By the way I do recall another article in your TAR rag that specifically dealt with the issue of seller agents who delete inspection reports that are sent to them and later tried claiming since they did not read them they, and their client, were not responsible for knowing the contents of the report. Another one your TAR leagle beagles said to!
Pretty much vague claims by someone who proclaims to be an "expert". Almost every Inspection one of my buyers has had done goes to the Listing agent to verify the needed repairs. They are never refused and I've never been told not to send except on foreclosures.
Maybe you'd like to link to some of these articles you've mentioned.
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