Seller's agent wants my home inspection

General Real Estate Investing
1

Hi Guys, I’m posting here because my buyer’s agent is awful. Anyhoo, she told me that the seller’s agent wants my home inspection report. (she also said that if their ‘new’ buyer doesn’t buy the house, the seller’s agent could keep my escrow funds tied up until someone else comes along. )

She’s been so shiester-y I don’t know what to believe.
RN

2

Need more info.

Was there a problem found at the house???

If there was? Of course the sellers agent is going to want to see it, they might now have to DISCLOSE a problem to potential future buyers.

If you have a legit problem found in the home, what kind of agreement did you sign? Some have clauses that will let you out.

3

Agreed. In Texas for example, the buyer could request from the seller to do repairs up to 5% of the cost of the house or the buyer can walk away. If you are trying to use the escape clause just to walk away, then you picked the wrong fight… Escrow requires both parties agreement to be released.

Now, if you have a valid reason to walk away, then talk to seller agent’s broker to see how you can resolve it.

4

I’m not sure I see things as everyone else does…and of course, all of this varies by state, but your written contract is going to have all of this in there.

On the inspection, I don’t think you’re under any obligation to give it to the seller, assuming that you paid for it. If you paid for it, it’s yours.

If you are using the inspection to get out of a contract, then they might be curious to know what is in there. Of course, if they find out everything that’s wrong with the house, they will then be obligated to disclose all of these things to future buyers. In some respects, seeing the report creates more liability for them. I actually find it curious that they are asking for it.

If the inspection revealed some defects that you don’t want to fix, you will need to look at the contract to determine your outs. Usually the contract will state, however, that you have “X” days to negotiate repairs requested based on the inspection, and if you can’t come to terms, then the contract dies. At that point, you should get your earnest money back after both parties sign the termination and release.

If you are concerned with the agent’s performance, ask to speak to the broker.

What exactly did you find?

5

Unless you are a real estate agent. An agent as a duty to disclose. Just one reason not to have a license.

BTW if you are buying a house and are trying to get a price reduction based on the inspection. When you fax in your request to have the price lowered, include in the fax (with date and time stamp) a copy of the inspection report. Since the agent now knows of all defects if he doesn’t sell to you he now has to disclose to everybody after you that want to buy the house.

6

There’s a few posts here that need clarification.

  1. It’s not a law or even a right that you can back out if repairs exceed 5% unless your contrat says this. For clarification, if a buyer used the 1-4 family TREC contract (provided by Texas Real Estate Commission), there’s a clause in Paragraph 7 that states that if lender required repairs exceed 5% of the total purchase price, the buyer can back out of the contact and get their earnest back.

The section also says that neither party is obligated to complete lender-required repairs. If you are not using the TREC purchase contract, have not included this clause or are not using a lender, you can’t just back out.

  1. On the duty to disclose…most states require full disclosure of known material defects in a 1-4 family property by the seller. There are exceptions for completing a written disclosure for REOs, estates/trustees, commercial property, etc. but sellers usually have to disclose any known defects or it’s fraud. Doesn’t matter if you are licensed or not. Non-disclosure of defects is probably the #1 reason for buyer/seller lawsuits.

You don’t have to provide your inspection to the other agent since you paid for it, but it helps validate your case. Most buyers attach the appropriate pages, but do not send the full inspection to prevent the seller from re-using it for free. On a side note, the owner also now has notice of defects in the property, so even if you don’t follow through, they now have to disclose them from here on out.

7

There were several issues found:

roof layers 3 shingle deep. max is 2 layers. some sagging of the roof, indicating possible rot, (not he main roof, the overhang)

one of his crew removed the asbestos insulation from the steam pipe - this was outside of the house in the storage area, but the inspector indicated that they could have tracked asbestos in the house.

there was a leak in the basement near /from the waste pipe. (100 yr old house. ) the main bath leaked at the drains for both the bathtub and the sink.

the inspector also noted someone check the breaker panel. there were 3 radiators in the house not working or not working properly.

i also had a radon test. showed acceptable levels.

I’m awaiting my esscrow funds to be returned. He wasn’t willing to do any repairs, although all I asked for were the “livables” to be done - working bath, proper waste water removal to avoid flooding the basement, and proper electrical function.

I’m glad to be out of the contract. Thanks for your replies.