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HOME INSPECTIONS - SHOULD THE AGENT ATTEND???

June 30th, 2010 by admin

Of course an agent should attend and MANAGE the home inspection.  We are not mere agents for the buyer or the seller.  We represent them with a duty of fiduciary.  The home inspector is not a fiduciary.  We cannot protect our buyer or seller client in any inspection if we are not there.  An agent who does not attend the home inspection fails to manage the home inspection contingency to the CONTRACT OF SALE.

The home inspection process begins with a review of the “home inspection contingency” which is an addendum to and part of the Contract of Sale.  It’s important to review that contingency so that the buyer, seller and inspector understands the limits of the home inspection with respect to defects and maintenance.  

Items such as a gas furnace with a cracked furnace wall is a defect and should be written as a necessary repair to be done by the seller under the home inspection contingency.  However, unless a defect can be identified by the home inspector, the contingency does not cover “maintenance” and therefore, an inspector who writes “have unit serviced by licensed HVAC company” should explain to the buyer that making that note is for the buyer to perform regular maintenance on an annual basis.  Without the buyer’s agent at the inspection, buyers assume that whatever the inspector writes, must be done by the seller.  Nothing is farther from fact.  The seller doesn’t have to make any repairs.   The buyer may be able to void the contract, but there are nothing automatic about repairs pursuant to a home inspection.

If the agent for the seller or buyer does not attend the home inspection, there is no management of the contract and home inspection process.  The home inspector is not advised that the “maintenance” comment by the inspector refers to after settlement.  The buyer will think that, because the home inspector wrote it, the SELLER MUST HAVE THE UNIT SERVICED BY A LICENSED COMPANY.  

This is just one example of contract confusion that can be avoided if the agent is there to manage the inspection process. 

PROPERTY CONDITION STATEMENT.  The agent for he buyer will have the Contract of Sale of which the Property Condition Statement is a part.  If the home inspector finds a serious defect in the property, leaking roof, leaking foundation, poorly cooling air conditioning unit, etc., and the seller failed to disclose the defect in the Property Condition Statement, the agent for the buyer will be able to identify the discrepancy.  The home inspector cannot. 

The above is just one example of the importance of an agent attending, observing, and understanding the home inspection findings and how the home inspection process and contingency relates to the Contract of Sale. 

Agents do not perform home inspections but we manage the Contract of Sale of which the home inspection contingency is a pertinent part. 

That’s our job.

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