Vince Hoehn of CENTURY 21 Pierce Realty LLC, Manitowish Waters, WI

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Vince's Northwoods Notes

Vince's Northwoods Notes blog is dedicated to providing market statistics, real estate news and listings, and community information relevant to Manitowish Waters and the surrounding communities of Northern Wisconsin.

The home inspection contingency as a hot topic - who would have thought?

The blog post on home inspections and the home inspection contingency that I posted on May 29th has been receiving a surprising number of views (for one of my blog posts, anyway).  Apparently this is a real estate topic which generates a large number of online searches for answers to questions that folks have about the home inspection process.  I don't know if the searchers ever found the answers that they were looking for, but thanks to the stats section of my website, I do know the questions that they were asking.

When I access the stats for my website, one of the things I may view is the actual queries that visitors typed into their search engine of choice that ultimately lead them to my site.  On the average, two searches relevant to inspection issues a day have been bringing visitors to my blog post.  Besides the expected searches for "home inspection contingencies", "negotiate home inspection contingency", "as is inspection contingency", "home inspection deadlines", etc., here are some actual and quite specific queries typed into the search box (usually Google) that recently brought people to my blog post:

  • "does seller have right to see home inspection"
  • "what does it mean if buyer does not submit inspection report to seller"
  • "what does seller shall not have right to cure"
  • "after home inspection, who talk to seller"

I find these specific questions interesting as such questions reveal the depth of understanding of the topic by the questioner.  I believe my blog post covers the topic quite well, but it never hurts to review and reinforce, so let's go over them quickly. 

But first, a caveat:  My answers are based on an offer to purchase written using Wisconsin's WB-11 Residential Offer to Purchase with no modification of the pre-printed language.  As always, the language of the actual contract, whatever it may be, controls.

1.  "does seller have right to see home inspection"    If, by this question, the writer is asking if the seller has the right to be present during the home inspection, the answer is "Yes" as the seller can't be compelled to leave his/her home, but the seller can do nothing to interfere with the home inspection process. Or more likely, if by this question the writer is asking if the buyer has to provide a copy of the inspection report to the seller, the answer is also "Yes."   (At least in Wisconsin.  The WI purchase contract states "Buyer agrees to promptly provide copies of all such inspection reports to Seller, and listing broker if property is listed.")

2.  "what does it mean if buyer does not submit inspection report to seller"    If the buyer does not submit the inspection report and a notice of defects within the required number of days after acceptance, the contingency is deemed satisfied

3.   "what does seller shall not have right to cure"    The seller either does or does not have the right to cure. The provisions of the contract determine which is true. Curing refers to correcting the defects in a good and workmanlike manner and delivering to the buyer a written report detailing work performed no later than three days prior to closing. If the seller has the right to cure, after receiving a notice of defects, the seller has the option to either elect to cure or not to cure. If the seller elects not to, the offer is null and void. If the buyer properly delivers a notice of defects, and the seller does not have the right to cure, the offer is null and void. 

4.  "after home inspection, who talk with seller"    I am not sure what the writer is asking here. In all matters concerning the transaction, the seller's contact person is their listing agent. If the buyer provides a notice of defects and a copy of the inspection report, the listing agent and seller would together review the report and notice and ascertain that the defects listed were indeed defects as defined by the contract and secondly, determine the seller's response to the notice.

 

 

Published Monday, August 03, 2009 1:34 PM by Vince Hoehn

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Sharon said:

We have just gone into escrow to sell our home (not in Wisconsin).  The buyers have indicated that they will not conduct a home inspection.  This seems unusual and not "best practice" on their part.  Is there anything we need to do to protect ourselves as sellers in this instance?  Does this leave us open to litigation in any way?

March 18, 2010 7:39 AM
 

Vince Hoehn said:

Sharon,

The answers to your questions depend upon the terms and conditions of your specific contract.  Contract forms vary from state to state, and beyond that, the terms and conditions written into them vary according to local practice.  I will base my answers upon my understanding of Wisconsin real estate law.

To answer your second question first, I can think of one scenario wherein the buyer's decision to forego a professional home inspection (I agree with you -- often times not the best decision) might result in increased risk to you.  It revolves around the Real Estate Condition Report that I assume that you filled out at time of listing and is now part of the contract.  Let's imagine a situation wherein your home has a substantial defect of which you are either unaware, knew about and failed to disclose, or knew about and disclosed but failed to disclose the true nature and extent of the defect.  Let's further imagine that this defect would have been uncovered during a home inspection (and properly disposed of through negotiations before matters got to this point) or, in this case, will become known to the buyer shortly after moving in.

Given this situation, some buyers will blame themselves because it was their decision not to have a home inspection, some buyers will get angry and blame the seller and move on, and some buyers will get angry and blame the seller and then contact their attorney.  Even if you were blissfully unaware of this hypothetical defect it will make no difference; the buyer will argue that you should have been aware of it and disclosed it fully.

Anybody can sue anybody anytime for anything.  That said, my layman's sense of the situation would lead me to believe that the risk of litigation brought against you in this situation would be small as it seems to me that you have a good grasp of how residential sales transactions are supposed to proceed, and given that knowledge, would have properly disclosed via the real estate condition report.

Your first question is one that I cannot comment upon -- that is a matter for an attorney once the contract is written and accepted.  Your attorney may also have a different opinion of risk level given your specific circumstances.

March 19, 2010 5:01 PM
 

Vince's Northwoods Notes said:

I note that one of my posts on the home inspection contingency is closing in on 10,000 views (Google

March 5, 2011 10:10 AM

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About Vince Hoehn

REALTOR associate at CENTURY 21 Pierce Realty of Mercer and Manitowish Waters, Wisconsin. (715) 543-2384 / (800) 440-7879 vince@c21piercerealty.com