Property Inspection condition

[Randy]

Here is the scenario:

Purchase contract drafted up and signed, with conditions of financing and home inspection. Let's say price was $200K

Had the inspection, and indicated that there was some major repairs required (i.e. replace roof). As a result, we were not willing to pay the full price, and advised the realtor that we would like to offer $190K.

Seller does not accept new pricing (note, no new purchase contract was drafted - this is verbal).

The realtor would now like a copy of the inspection report (which was at our expense). The purchase contract has the following term:

- In the even the Buyer does not give the notice to waive/release the Condition, the Seller is entitled to a copy of the complete inspection report.

However, I do not recall saying/signing that we waive or not waive the home inspection condition. We simply said we would like to offer the new amount (or does the new offer imply that we don't waive the condition?). Are there any sign off to waive or not waive this condition?

[Weapon_R]

By counter-offering, you have made a completely new offer. Since you did not give notice to waive the condition according to the original contract, you need to give the seller a copy of the complete inspection report. Note that you may be held liable for breach of contract if the report does not indicate the repairs for which you originally decided to counter offer.

[HRD2PLZ]

If you and the seller do not come to an agreement because of the roof issue (or whatever the defect is) and you do not waive conditions you will have to give them the property inspection report. Property inspections can be tricky, if the seller doesn't deem your reasons valid (i.e. the roof was in obvious need of replacement) then there could be legal ramifications. The purpose of a property inspection is to identify defects in a property which the average person may not have seen or was not aware about. Many people (not saying you are a part of this group) will use inspections as a way to try and negotiate a lower price for the home.

I recently had an inspector in on a property I had purchased for myself. I was aware there was some things that would need to be done, its an older home. The inspector pointed out a few things I was unaware of and when it came time to waive the condition, I just waived it. The inspection didn't identify any major defects in the home... no surprises, I was happy.

To answer your question though, you do have to either sign the Notice waiving conditions or sign the non-waiver of conditions and back out of the sale. You should discuss this with your Realtor though as he/she will be able to advise you how to proceed.

[Randy]

Thanks for the info!

The roof was the main thing that came up in the inspection. Was told several time that there was no leaks in the house, yet the inspector was very confident that there are signs of leakage. When asked again, the Sellers then mentioned, oh yes, there was, but it has been fixed/repaired. Inspector acknowledges that repairs were made, but could not comment on the quality of work.

The one thing I was puzzled with was that the realtor (dual agency agreement) requested the report, but I didn't sign any notice waiving the condition, or sign any non-waiver of conditions. For all I know, I could have waived the inspection condition, and fail the financing condition. Therefore, not required to provide the home inspection report.

Lesson learned I guess!

[tm.88]

When the listing Realtor filled out the listing contract there is a section that asks are you aware of any defects with the property. Seeing as they told you that they did know but they fixed it i would check to see if anything was done in terms of repairs. If not then they (sellers) are in breach of contract for giving false information on the listing contract.

Also, i never advise for verbal offers, even though a verbal contract can be held up in court, it is not worth the hassle. A new offer would not of been needed either. You can just cross out a section, re write it and initial it.

[HRD2PLZ]

Originally posted by tm.88


Also, i never advise for verbal offers, even though a verbal contract can be held up in court, it is not worth the hassle. A new offer would not of been needed either. You can just cross out a section, re write it and initial it.

Whenever an issue comes up in a property inspection the negotiation is verbal. The buyer will ask the seller for an adjustment on price for the amount that needs to be repaired, meet half way, etc and if the seller agrees the adjustment is made on an Amendment to the Purchase Contract.

To the OP, you could always request that the seller provide proof (i.e. receipts) from the actual repairs.