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You are selling a home and buyer's have their inspection done. As the seller, it is your right to refuse to make repairs. So if you refuse to make any repairs, what protections do you have within the closing documents? Can the seller have an attorney write up documents for the buyer to sign, that they have had their inspection and are buying ther home basically as is? Basically, how does one protect themselves from this? What language protects the seller.
Another question....An agent "encourages" an inspector to place items on the repair inspection list that really don't need to be done. What recourse can you do to combat this?
A woman sells her home and implied that she would agree to have most of the repairs done. A sort of kind gesture to her buyers, but not in the contract language anywhere. Inspection comes back (its the third one on the home in a month) and it lists many very expensive repairs that the previous two inspections done just weeks earlier did not have. She calls out her own inspector, who was angry and said this was a classic case of a buyer's agent persuading an inspector to add stuff that is not needed, likely to get the home price lowered.
Now, despite their being no language in the contract, (just that kind gesture) buyers are angry that she is not agreeing to repairs. In fact, she declined all repairs under the advise of counsel. Do the buyer's have any recourse? Does the seller have any legal questions to be answered by the buyer's agent?
All of these issues should be addressed in the purchase contract. At least in AZ, no verbal agreements are binding. This is as situation where a FSBO seller may get into trouble if they don't have their contract set up to cover these situations. Our standard Realtor contract and addenda document the buyer's inspection repair requests and the seller's response, with specific actions to be taken. The buyer can cancel or accept repairs (or no repairs) offered in writing by the seller. "Implied" repairs are not an acceptable response.
The seller's recourse is the right to refuse any repairs requested by the buyer. Of course, the buyer can also cancel the contract if this is not acceptable.
First of all contracts are different from state to state. In some states there is a repair amount automatically written in such as "seller to complete no more than $1,000 in repairs." What state you are in is important. In Oregon and most West coast states we do "as-is" contracts. The buyer can ask for repairs but there is no contractual obligation to do so. It's a negotiation. I think the East coast states tend to have a repair amount in their contracts.
Second, I have never seen or heard of a "repair inspection list." What home inspectors do is write down everything that needs to be taken care of regardless of how big or small. Inspectors don't negotiate repairs, real estate agents do. It doesn't matter that the repair doesn't need to be done, it is still the inspector's job to note it.
Third, why in the world has a home had three inspections in one month? That is a serious transaction red flag to me. What's that about?
Fourth, read the contract. Out here we have a clause that states that the buyer is not relying on any oral representations (such as telling people you will do repairs) if they aren't in the contract. I'd bet the contract has a clause like that too.
Fifth, it sounds like the seller has legal counsel who has actually read the contract. If the woman feels she has good representation she should do what her attorney tells her to do.
Sixth, whether or not the buyers have recourse depends on whether the contract says they do.
Seventh, what do you mean does the seller have any legal questions to be answered by the buyer's agent? I don't understand that phrasing.
Silverfall is correct, it all depends on your state and what is written in your contracts. My discussion was specific to Arizona as an example and may not apply in your situation. He is also correct that the inspection repair list (I think you mean the buyer's repair request list) is prepared by the buyer's agent and the buyer. The inspector only reports the issues found, it's up to the agent/buyer to decide what to do with the report items.
Inspectors don't negotiate repairs, real estate agents do. It doesn't matter that the repair doesn't need to be done, it is still the inspector's job to note it.
Seven good questions,SF.
As an aside, in my neck of the woods, inspections are negotiated between attorneys, on behalf of the principals. Many agent refuse to get involved.
Last edited by middle-aged mom; 09-16-2009 at 08:27 PM..
Another question....An agent "encourages" an inspector to place items on the repair inspection list that really don't need to be done. What recourse can you do to combat this?
She calls out her own inspector, who was angry and said this was a classic case of a buyer's agent persuading an inspector to add stuff that is not needed, likely to get the home price lowered.
Sounds like the seller's inspector is speculating, here. Inspectors report their findings. They do not fabricate issues to appease buyers or their agents. Routine maintenance issues as well as more substantial problems are typically reported by inspectors.
Sounds like the seller's inspector is speculating, here. Inspectors report their findings. They do not fabricate issues to appease buyers or their agents. Routine maintenance issues as well as more substantial problems are typically reported by inspectors.
If you really believe this, I got some beach front property..........
I could write a book on the bad inspection reports I've seen inspectors write, with intent to manipulate. Many have been fined, shut down, and even prosecuted for fraud.
Seriously be real. While most inspectors are ethical, many are not, or cave to pressures presented from wanting business. Its long been known that real hard nosed inspectors who report every finding are not on most realtors recommended lists. The ones who are more laid back, easy going.......well, they tend to be on everyone's list!!!!!!!!!!!
If you really believe this, I got some beach front property..........
I could write a book on the bad inspection reports I've seen inspectors write, with intent to manipulate. Many have been fined, shut down, and even prosecuted for fraud.
Seriously be real. While most inspectors are ethical, many are not, or cave to pressures presented from wanting business. Its long been known that real hard nosed inspectors who report every finding are not on most realtors recommended lists. The ones who are more laid back, easy going.......well, they tend to be on everyone's list!!!!!!!!!!!
Sure. It has been known by the unknowing nearly as long as that other legend, the one where the guy wakes up in the tub full of ice and a kidney is missing....
Articulate, thorough, and skilled inspectors who write a coherent and complete report that includes documentation with photos get all the work they need.
Puffballs tend to get work because they are free to work. Today, tomorrow, whenever, because no agent in their right mind will recommend them.
Inspectors do NOT break deals with skill. Deal-Breaker inspectors tend to be drama kings who preen for their audience and instill unnecessary fear in clients via their behavior and demeanor.
I want the thorough, skilled, knowledgeable, and articulate inspector for my clients. Every time. It is part of my function to help them find that guy, IMO, and in the opinion of any skilled agent.
Sure. It has been known by the unknowing nearly as long as that other legend, the one where the guy wakes up in the tub full of ice and a kidney is missing....
Articulate, thorough, and skilled inspectors who write a coherent and complete report that includes documentation with photos get all the work they need.
Puffballs tend to get work because they are free to work. Today, tomorrow, whenever, because no agent in their right mind will recommend them.
Inspectors do NOT break deals with skill. Deal-Breaker inspectors tend to be drama kings who preen for their audience and instill unnecessary fear in clients via their behavior and demeanor.
I want the thorough, skilled, knowledgeable, and articulate inspector for my clients. Every time. It is part of my function to help them find that guy, IMO, and in the opinion of any skilled agent.
If you really believe this diatribe, have the county inspector out to inspect all the homes you are trying to sell! Nuff said? Cat got your tongue? I've followed behind "realtors recommended inspectors" with a county inspector. Average additional findings on existing homes? 43 items!
Its something many will be reading about soon enough.
And here is a sound piece of advise for ANYONE out there buying a home. Never, I repeat NEVER, use an agent's recommended inspector, unless you really, really, really trust and know your agent.
Call the city, or county and ask who they recommend. Then call other inspectors and ask them who is the toughest inspector out there.
I do not believe an inspector is out there to be a deal killer, or he'd be out of a job fast.
I do not believe an inspector is out there to rubber stamp houses either.
We are all humans, and we all make mistakes. Just some mistakes cost more money than others.
I do not supervise home inspectors. I sit and hold flashlights, clipboards, pens, cameras...
If you see such horrible behavior, report it. I think if you don't report it, you are an accessory.
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