Can a real estate agent (the selling agent) share an inspection report with a new buyer that the previous buyer paid for without permission?

Asked by KBuyer, Billings, MT Thu Jun 20, 2013

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Kathy Cashmore’s answer
Kathy Cashmo…, Agent, Billings, MT
Mon Jun 24, 2013
I have needed to disclose certain property defects that have become apparent as a result of the previous inspection and in that case I will use portions of that inspection as verification of the same to the new buyer. However, if the new buyer wants the full report in order to save their own money/time in lieu of having a new home inspection done I usually contact the previous buyer's agent to see if their client would like to sell the home inspection to the new buyer (usually at a discounted rate). This seems to work out well for all the parties involved.

Often, I do not have a full copy of the home inspection in the file as the previous buyer's agent only sent along those portions of the inspection that were pertaining to the defects that were written up in the Inspection Notice from the buyers. That is, normally, what I send along to the seller's agent when I have the buyers - not the full report.
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Jonathan Por…, Agent, Billings, MT
Thu Jun 20, 2013
I agree with Larry.

Plus, the home inspection is for the buyer, but if they decide to not buy the home because of something in that report, the report was pretty valuable of itself. Once the buyer moves on will they ever really need that report again?

I have seen buyers give the seller the report for free and move on and I have also seen them sell it to them. It just depends on the buyer.
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Thanks for the response.
We had to move on because we had a contigency and the backup offer came in after the hold period in the buy/sell. The inspection was done before the hold expired to comply with the buy/sell inspection date. There was a lot wrong with the property but we moved forward with a notice and resolved that issue with the seller. However to facilitate communication on what the inspector found -the inspection was given to the selling agent so the seller could view it. The agent is sharing that inspection with the second buyer as is, and without permission. Our agent tried to negotiate a fee for it on our behalf and the agent said that because they have it, they can give it to who they choose. I think they should ask at the least, or offer a small fee. I also think inspectors that agree to offer the same inspection and warranty it to a new buyer is NOT a good way to do business either. It was paid for by someone else and they get to collect double.
Flag Fri Jun 21, 2013
Larry Thomas, Agent, Billings, MT
Thu Jun 20, 2013
I agree with the previous answer.The report is the property of the previous buyer because he/she hired & paid for the inspection. However if the inspection discovered serious damage or repair issues, the selling agent is now aware of those issues and has an obligation to the new buyer to inform them.
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Larry please see response above, and let me know your thoughts too. Thanks.
Flag Fri Jun 21, 2013
Fred Herman, Agent, Staten Island, NY
Thu Jun 20, 2013
In general, No. But the seller's agent has an obligation to let the buyer know about latent defects/problems he/she is aware of.
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