BUYER INSPECTION NOTICE SELLERS RESPONSE (BINSR):
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The inspection period is a contingency with the purchase contract that allows the buyer the time to perform all the necessary inspections on the property. During this time it allows the buyer to discover all about the property and gives the buyer the opportunity to take the property “AS IS”, ask the seller to make repairs, or cancel the contract.
It is very important to have a licensed agent that knows what they are doing to guide both buyer or seller through the inspection period.
Once an offer is accepted by the seller, there is a due diligence period, which is specified in the purchase contract. The standard period is 10 days. The inspection time period is up to the buyer and can be changed to fit the situation. Depending on the circumstances, a shorter or longer time frame may make sense.
The countdown of inspection days starts the day after the contract is accepted. Let’s say the seller accepts your offer on Sunday. Day 1 of the inspection period would start at 12 a.m. Monday and end 10 days later, at 12 p.m. on the second Wednesday.
During the due diligence time period, it is important to stay on task and complete all necessary inspections within the given time period. If inspections are not performed and the BINSR is not delivered to the seller by the deadline, the buyer then elects to proceed with the transaction without corrections of any disapproved items.
During the inspection period, the seller provides to the buyer the Seller Property Disclosure Statement (SPDS). The SPDS is an important document that should be reviewed during the inspection period. It can help point the buyer to items that may be of concern.
To see a copy of a BINSR you can review in advance CLICK HERE.
DUE DILIGENCE CHECKLIST
- Check comparable values through a Comparative Market Analysis (CMA).
- Check to see if the house is in a floodplain.
- Obtain Seller Property Disclosure Statement (SPDS) from the seller through listing agent.
- Check to see if there is a termite warranty.
- Check for building permits issued for any prior modifications of the home.
- Acquire and read Covenants, Conditions, & Restrictions (CC&Rs). These are limits and rules placed on a group of homes by a builder, developer, neighborhood association, or homeowners’ association. When buying a property in a shared community, a buyer may give up certain freedoms.
- Obtain a home inspection from a licensed home inspector.
- Complete other recommended property inspections:
- Termite inspection (required for certain types of loan programs)
- Roof inspection
- HVAC system inspection
- Pool inspection
- Any other specific areas of concern
