Planning for a Home Inspection in Texas

You have cleaned outside and inside to make your house attractive to buyers. You may have even gotten rid of a few things. But don’t forget to prepare for the home inspection.

Whether a buyer is planning to live in the house or rent it, he or she will need to be assured of which systems work and which don’t. If the buyer isn’t happy with the outcome of the home inspection, they may cancel the contract or ask to renegotiate the price, as the home inspection is a contingency in most contracts.

One of the first actions to be taken once a contract to sell the property is signed is that the seller must provide a Seller’s Disclosure of the property condition in writing to the purchaser.

“Seller disclosures in Texas are governed by Texas Property Code Section §5.008. That statute provides: ‘A seller of residential real property comprising not more than one dwelling unit located in this state shall give to the purchaser of the property a written notice’ of material defects in the property. The statute asks sellers to use the disclosure form developed by the Texas Real Estate Commission (TREC), which is a state agency charged with generally overseeing the real estate market.

“This form must be delivered to the buyer ‘on or before the effective date’ of the property purchase contract. In other words, you cannot have the buyer sign the purchase contract and become bound by it, and then a week later, hand the buyer a disclosure form saying that the electricity in the house does not work.” 1

Failure by the seller to accurately disclose known property defects can result in serious legal issues for the seller. A seller can be sued for misrepresentation, fraud, and even violation of the Texas Deceptive Trade Practices Act for intentional concealment of known property defects that go undisclosed.

I have consulted with numerous homeowners over the past several years who were sold properties, sometimes by investors, only to discover that serious property defects were covered up cosmetically and not disclosed. Such actions by sellers have often resulted in extended litigation, costing both sides a great deal of money.

The inspector’s job then is to report all deficiencies and/or safety violations according to code, so everything will be inspected, not just the items identified in the Seller’s Disclosure of property condition.

You may expect that the foundation, shingles, gutters, toilets, plumbing and electrical will be checked. But don’t forget that the not-so-obvious will be reported, such as cracks, water stains, broken windows, and improper venting.

To be competitive, you’ll want to prepare for the home inspection by following these guidelines.

1. Sometimes inspectors are early, so be prepared . . . you probably don’t want to see someone poking around outside your bathroom window while you are brushing your teeth.

2. You know to clean the house; however, to make it easy for the inspector, you may want to go the extra mile, such as cleaning or changing filters, replacing batteries in smoke detectors if needed, replacing torn screens, and trimming trees near the roof.

3. Even if you have moved prior to selling the home, the utilities must remain connected so the dishwasher, furnace, stove, A/C and receptacles can be checked.

4. Ensure all pilot lights are lit.

5. Make access easy to the A/C, furnace, water heater, garage, basement and attic. This includes removing brush, snow, trash cans, and the like. Provide the garage remote/key as well as keys to any additional buildings. Electrical boxes and sprinkler systems must be available for inspection. Unlock gates.

6. If you have replaced the roof, furnace, A/C or other item, fixed a leaky faucet, or have proof of an insurance claim, give the inspector the documentation.

7. You and your pets should leave the house for at least three hours.

If there are any items that do not pass inspection, you must decide whether to make the repairs and not take a chance on losing a prospective buyer or try to negotiate with a buyer. For example, you may agree to fix some items or reduce the price of the home to the degree necessary for the repairs to be made.

Being prepared for the home inspection is an important step in the sales process and will give you an advantage in a competitive housing market!

1Farkas, Brian. “Selling a Texas Home: What Are My Disclosure Obligations?” https://www.nolo.com/legal-encyclopedia/selling-texas-home-disclosure-obligations.html

References

Farkas, Brian. “Selling a Texas Home: What Are My Disclosure Obligations?” https://www.nolo.com/legal-encyclopedia/selling-texas-home-disclosure-obligations.html

Gordon, Lisa (2017, March 14). “Selling Your House? Better Prepare for the Home Inspection”. https://www.realtor.com/advice/sell/prepare-home-inspection/

Weintraub, Elizabeth (2018, August 24). “How to Get Ready for a Home Inspection”. https://www.thebalance.com/get-ready-for-a-home-inspection-1798690

Zillow’s Home Sellers Guide. “How to Prepare for a Home Inspection” https://www.nolo.com/legal-encyclopedia/selling-texas-home-disclosure-obligations.html