Investor · Excelsior, MN · Member since 2017 · 85 posts · 37 votes
So I am not totally sure if this is way out in left field but has anyone ever purchased an inspection from someone who backed out of a deal due to inspection contingency? My thoughts are that it would be a way for the initial person to recover a few $$ of the inspection cost and it would allow me to put my best foot forward in negotiations. I would already know what is going on with the house and could eliminate that contingency from my offer to make it appear "stronger" to the seller.
Thoughts? How would I go about doing this? Is it just simply a matter of reaching out to the buying agent?
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
9y
In theory, any defect uncovered in an inspection from somebody who backed out is now a material fact that the agent and owner know about and would thus would be legally obligated to disclose to all future buyers. In practice this rarely happens, though.
Who says that the inspection has uncovered any material problems? The buyer could have had another issue and wanted to back out.
I sell my houses waiving all disclosures. I do this because they are investments and I do not know as much about the house as someone who would occupy the house on a full time basis. That just means the buyer will likely get an inspection because I am not claiming anything works.
I have had a person back out of purchasing a house after an inspection and they didn't want to give me the inspection report, said they would sell it to me. This was 10 years ago and my realtor didn't say anything about them having to pass it over and of course I didn't buy it.
If the inspection uncovers a problem that makes the Disclosure Statement incorrect you likely have an obligation to disclose the information or correct your written disclosure statement. Requiring someone to pass on an inspection report seems ridiculous.
In theory, any defect uncovered in an inspection from somebody who backed out is now a material fact that the agent and owner know about and would thus would be legally obligated to disclose to all future buyers. In practice this rarely happens, though.
Who says that the inspection has uncovered any material problems? The buyer could have had another issue and wanted to back out.
I sell my houses waiving all disclosures. I do this because they are investments and I do not know as much about the house as someone who would occupy the house on a full time basis. That just means the buyer will likely get an inspection because I am not claiming anything works.
I have had a person back out of purchasing a house after an inspection and they didn't want to give me the inspection report, said they would sell it to me. This was 10 years ago and my realtor didn't say anything about them having to pass it over and of course I didn't buy it.
If the inspection uncovers a problem that makes the Disclosure Statement incorrect you likely have an obligation to disclose the information or correct your written disclosure statement. Requiring someone to pass on an inspection report seems ridiculous.
I didn't say there were necessarily material defects ... I just said that if there were any that were revealed that they would then legally have to disclose them. You can't just "waive all disclosures" at least not in my market or any other market I know or operate in, unless you are a bank selling a foreclosure (funny how they get special treatment) ... if you don't disclose something and it can later be proven that you the seller knew about it (this is the key, and an inspection report would be a great example), then you are legally on the hook, regardless of if you try to "waive disclosures" or not.
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
9y
@David Faulkner in MN as a seller you can waive all disclosures on a property which is what I do. A realtor can chime in but we have a standard disclosure statement, you can waive the disclosure statement and provide an inspection report, or you can waive it and provide nothing. Believe those are the 3 options.
That being said I can't see how it would be required for a seller to pass on an inspection report if they had it.
you should not have to do so. Inspection is individual for all at that time when inspection inspector arrived to find a different buyer to find a different conclusion.