Buyers Inspection Notice….Sellers Response
What It Is And What You Need to Know About It
What to know about the Buyer’s Inspection Notice Seller’s Response or “BINSR” when buying a home in Arizona.
It is an important form in every Arizona real estate transaction. Home buyers use it to request repairs based on the home inspections they have done.
It is an addendum to the Arizona Association of Realtors Residential Purchase Contract. The Buyers Inspection Notice is an organized way for Buyer to request repairs and the Seller to respond to that request.
Even when a buyer doesn’t do any inspections, the BINSR is still used. In this case, the buyer indicates on the BINSR that they are accepting the premises “AS IS”. No repairs requested.
The Buyers Inspection Notice identifies all repairs the buyer wants the seller to do. It must be in the hands of the seller before the end of the inspection period.
If NOT, the buyer waives their right to request repairs by the seller.
The Inspection Is Done….Now What?
Upon receiving the Tucson home inspection Report, the Buyer has 3 courses of action. Each of these actions requires the Buyers Inspection Notice.
1- Accept the home without requesting any repairs and proceed to closing.
2 – Reject the home based upon the issues raised by the inspection.
3 – Formally request the seller to make stated repairs to the home.
When The Buyer selects #3
We will prepare the “Buyer Inspection Notice Seller Response” form. It identifies all repairs the buyer want the seller to make.
The Seller now has 3 options:
1 – Agree to make all requested repairs and proceed with the sale.
2 – Agree to make some, but not all, of the requested repairs.
3 – Refuse to make any repairs.
Should the Seller select either option 2 or 3;
The Buyer now has TWO (2) options
1 – Cancel the contract due to the Sellers not making all repairs
2 – Accept the Seller not making repairs and proceed with the purchase.
While this process sounds complicated it is actually straightforward.
The Arizona residential purchase contract sets forth all standard timelines. But if agreed to, the buyer and seller can agree to change them.
We are, of course, there to explain and review the options available in each step in the process.
In Arizona a home inspection occurs when a buyer makes an offer on a property and the seller accepts the offer.
The buyer has 10 days to hire a home inspector and complete all inspections.
Once agreed upon, the seller is to complete all agreed to repairs before close of escrow. The seller must also provide paid receipts for the repairs to buyer 3 days before the close of escrow.
But sometimes contractor scheduling gets in the way of meeting the deadline. And sometimes Buyers want to close escrow before the seller completes the repairs.
There are many reasons for this, but it is never a good idea to do it.
So, what are the risks?
The Scenario:
After the home inspection and Buyers Inspection Notice submission, the Seller agreed to complete a roof repair requested by the Buyer.
But due to scheduling, the roof contractor could not complete the repairs before the close of escrow. But the buyer still wants to close on time and move in.
So what do they do now?
The seller purposes, and the Buyer agrees, a perfect solution. The seller will pay the roof contractor’s invoice to repair the roof at close of escrow. Making the payment from the proceeds from the sale of their home.
Then the contractor will complete the repair after the close of escrow.
The Seller asks the roofing contractor to submit an invoice. The key point here – it is not a proposal!
Sounds like a good plan, right? WRONG!
Almost all the risk is on the buyer with this plan of action.
What are the risks?
For one, the roofing contractor gets paid at close of escrow. Before completing the work
Since the contractor has the money, they could delay the repair work. They might schedule new work ahead of the buyer’s home. Remember, the work is already paid for.
The contractor might not complete the job or not complete it in a workmanlike manner.
NOTE – Seller and Buyer could agree to an “escrow hold-back” at close of escrow. The escrow company holds the funds. In this situation, the roofing contractor would not be paid until the repairs were completed to the Buyer’s satisfaction. Any cost over runs would still be the Buyers responsibility.
DANGER!
What if the job needs more work to complete. More than the contractor got paid. These added costs will be the Buyers responsibility.
Our recommendation is ALWAYS wait for the repairs before closing escrow.
How?
The simplest way is for the Buyer and Seller to extend the close of escrow date. This allows the work to get done AND the Buyer to do a final inspection or “walk through”.
Inspections All Buyers Should Consider
Tucson Termite Inspection and Tucson Roof Inspection also provide valuable information to the Buyer’s purchase decision. Some Buyers want to have Tucson Radon Inspection or Tucson Mold Inspection.
If suggested by the Tucson Home Inspection a Tucson Structural Inspection or Tucson Pool Inspection may be required.
Should the property have a septic system a Tucson Septic Inspection will be required.
Each Tucson home inspection follows standards established by the American Society Of Home Inspectors. These standards are adopted from the American Society of Home Inspectors (ASHI) 1992 Standards of Practice.
The more inspections, the more issues will discovered. The Buyers Inspection Notice communicates the requested repairs to the seller.
Considering A Home In Tucson, AZ?
Are you thinking of buying a home in the greater Tucson area? Finding the right home can be a challenging process. But we can make the process much less stressful for you.
We have been Tucson Realtors since 2002. We know Tucson and the Tucson Real Estate market. As a top Realtor duo, we invest the time to understand your home buying interests and desires.
At our first meeting, we will review the current real estate market with you. Show you the market data and then walk you through the Arizona home buying process.
Why? We want you to know what to expect. And what to plan for.
Interested in new construction? We’ll brief you on buying a new construction home. And what’s unique about the process. And even though it is new construction, we recommend you have a home inspection.
For us, you are not another real estate transaction. You are a client and, future friend. We strive to create a relationship that continues long after you move into your home.
Our goal is to provide insight, advice and the highest level of professional services to you. We want you to be proud to recommend us to your family, friends and acquaintances.
Review our profiles. Check out our backgrounds, education, and certifications.
We are here to help you “know what you need to know” to buy a home in Tucson, AZ. We provide you information on Tucson events, places to shop and restaurants. Our resources include contractors, electricians, and home services.
Best of all, our professional service backgrounds mean we put you first!
Conclusion
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