i'm selling a house as is, the buyers accepted as is and conducted termite and foundation inspection on their

Asked by Calif Home Owner, 95125 Wed Jun 17, 2009

own. 1. did they need my permission to do the inspections? 2. am i obligated to read the reports? 3. is my real estate agent obligated to see and send me the reports from the buyers?

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Kawain Payne’s answer
Kawain Payne, Agent, Seal Beach, CA
Sun Dec 16, 2012
Buyer does not need your permission to conduct an inspection. You are to give them access to the property to conduct the inspection. Selling a home "AS IS" is a myth.

Homes are sold "as disclosed".. You should not hide any facts you know about the condition of the property.

You should get a copy of teh report, and you should READ it.
0 votes
Sara Greenwo…, Agent, San Jose, CA
Tue Feb 16, 2010
If you're going to sell your home 'As Is', it is best to get very detailed inspections of the property. I recommend Property Inspection, Pest Inspection, Pool inspection (if there is a pool on the property) and Roof inspection. If you know that the integrity of the foundation may be questionable, hire an expert to inspect it.

The buyers do not need your permission to do inspections. It is their right. Most buyers will share the reports with you (the seller), especially if something in the report comes back as 'servicable'.

Just because you listed your home 'for sale in 'AS IS' condition' does not mean that the buyer has to buy it; the buyer has every right to cancel the contract during the inspection contingency if there are problems that they were not aware of when the contract was ratified. It's always a 'shame on you' if you list your home without conducting inspections. Selling a property 'as is' does not mean that the buyer must commit ... just means that they are going into contract with the right to investigate more.
Web Reference:  http://www.saragreenwood.com
1 vote
Declancroghan, Home Buyer, San Jose, CA
Fri Oct 28, 2016
Regardless of all of that. The Law is that you must disclose all known material facts about the property. If your house has such problems, you know and you don't tell the buyer, then you are liable. Also, it is impossible to know what 'as is' means until you do your due diligence. The Agent has a fiduciary duty to the client. We're not selling fruit here. For most people their home is their single biggest investment and equity.

Hope that helps.
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Liz Oreglia, Agent, SAN JOSE, CA
Tue Jul 16, 2013
Are you selling your home with a licensed Real Estate Agent who is explaining to you the complete process when selling a home? It doesn't sound like it. When you sell your home it is important that you perform the necessary inspections but that you are aware the buyers will do the same. Any new information, or repairs could result in the buyers coming back and renegotiating before contingencies are removed. This is why it is important to have a realtor that is an excellent negotiator as myself to help secure your list price!
Liz Oreglia
Intero Real Estate Services
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Sat Oct 20, 2012
A buyer has every right do their inspections, when you signed the contract you agreed to give the buyer access, As Is or not.

California law requires that when a Buyer does Inspections, a Seller should get a copy of the reports on their property

Good luck

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Lisa Wiseman, Agent, San Jose, CA
Wed Oct 17, 2012
I echo Sara's comments. Every buyer has the right to conduct investigations, unless they have removed
their contingencies (they can still do them, however they then cannot cancel for reasons related to the property). It is a common misconception that 'as is' means there are no property contingencies. It basically means that the seller does not have to pay for any repairs, however they buyer has the right to complete their inspections and lower their asking price for any significant findings. If they do this, you have the right to see the inspections. Read the 'as is' section of your contract for confirmation.
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Robert Lei, Agent, Cupertino, CA
Mon Oct 15, 2012
I hope I don't sound too harsh, but I want to give you an honest answer without sugar-coating it.

Sounds like either your agent didn't explain to you the full meaning of AS-IS or he/she did, but you weren't listening.

1. The buyers are not only ALLOWED to do their own inspections, they are ENCOURAGED to do their own inspections, ESPECIALLY because it is an AS-IS sale.
2. What do you hope to achieve by purposefully avoiding reading them? Even if you don't read them, the buyer and everyone else still is allowed and ENCOURAGED to read them.
3. Whether or not you or your agent read the reports, the reports still exist. The buyer read them and if their inspectors found something major that your inspector missed then they have every right to back out of the deal. Not only that, but if these buyers back out of the transaction, you and your agent are required to show all FUTURE buyers the reports done by the PREVIOUS buyer who backed out.

This might sound harsh to you because you were the seller. However, when it's YOUR turn to be the BUYER, you will be glad that you have the same opportunity to do your own investigation before buying.
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Joe Salcedo, , San Jose, CA
Fri Oct 30, 2009
Good Morning,

You selling your house in "" AS IS CONDITION" you can do that as long as you
disclose to the buyers provided that you have those inspections ready for review
or let them do thier inspections prior to close of escrow, the reason behind this
is no one to be blamed later on. Agai n you can sell your property provided you
have all inspection the property inspection report, termite report, roof report and
0 votes
Terri Vellios, Agent, Campbell, CA
Sat Jun 20, 2009
When I hear questions like this the first thing I ask is; "What does the contract say?" The second question is, "Why do you ask? What are your concerns?"

In both the CAR and PRDS contracts the seller agrees to allow the buyer to conduct inspections (some exclusions regarding code enforcement and damage is made) In the PRDS contract it also states the Buyer is to Furnish the Seller copies of any reports.

Your agent is obligated to send you copies of any reports received. You and your agent are not obligated per contract to read their inspections. I would however, advise you to read them - in the event of errors or safety issues reported, re-negotiation of the contract (possibly second opinion), or contract failure for future disclosure.
Web Reference:  http://www.terrivellios.com
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Mark Burns, , Cupertino, CA
Wed Jun 17, 2009
1) It sounds like they didn't ask when it was convenient to stop by, they just came by and did the inspections.
2) You can ignore the reports but they are important when making disclosures to the next buyer if this buyer doesn't close.
3) Your agent can ignore them too.

Are these answers good common sense? No. Read the reports. It's in your best interest to do so. In regards to #1 in particular, polite behaviour is sometimes lacking in a real estate transaction.

Generally a seller is obligated to grant 'reasonable access' to the buyer for any additional inspections the buyer may desire. The buyer may, in fact, remove all of their contingencies and continue to obtain additional inspections even up to the close of escrow. Do people do that? Sometimes. They may be getting bids or a second opinion for repairs to the foundation and the termite problems. Or the roof, or the kitchen, or just about anything.

Is it going to close or do you foresee the buyer coming back and asking for repairs or credits despite buying it as-is?

Many times a buyer finds new items at the property that were previously undisclosed and unknown to the seller and the listing agent at the time the contract was accepted. At this point 3 things can happen:

1) The buyer can request the new items be repaired or be given a credit.
2) The buyer can inform the seller that they will not be removing their contingency and effectively the sale will end up being canceled.
3) The buyer can close escrow with the newly discovered defects and not have any repairs or credits given.

Usually #1 or #3 end up being the result. #2 leaves a seller with new items to disclose to the next buyer. This could cause harm to the seller by way of a delay in finding a new buyer and potentially receiving a lower price for the property.

If the seller says no to #1 the buyer has the choice of closing or canceling. Then the seller has to consider what might happen if they end up with #2.

Your agent will (hopefully) be able to advise further on these issues and the consequences that may follow depending on your actions.

Or it may just close with both parties being satisfied with the deal.

Reading the contract and having your agent explain it is truly important. If your agent can't do that, have a competent real estate attorney advise you. Not just any attorney but someone who specializes in residential real estate issues in Silicon Valley. That rules out friends, family members, and others who know enough to be dangerous but not helpful.

Mark Burns, Realtor
Coldwell Banker - Premier
President - PRDS. Contracts and forms for Silicon Valley Real Estate 2008, 2009
President - Silicon Valley Association of Realtors 2007
DRE # 00896552 licensed since 1985
Web Reference:  http://www.markburns.com
0 votes
Steven Ornel…, Agent, Fremont, CA
Wed Jun 17, 2009
Hi "CHO",

1) When selling a home using the CAR Residential Purchase Agreement, "as is" does not mean that the Buyer has no investigative rights, nor investigative findings cannot be a basis for a request for repairs in order for the investigation contingency to be removed. Para 7 and Para 14B cover this topic.

2) Para 9B requires that the Buyer, at no cost to the Seller, provide complete copies of all investigative reports. I’m not sure whether you are obligated to read any Buyer reports, a lawyer would have to comment on whether not reading the reports is a problem, but certainly not providing the reports to subsequent future Buyers would likely introduce non-disclosure liability for you.

3) Yes, if your agent receives Buyer reports these should be provided to you.

When in doubt – DISCLOSE!

Best, Steve
0 votes
Rebekah Owen,…, Agent, San Jose, CA
Wed Jun 17, 2009

1) You want them to do inspections - otherwise ANYTHING THEY EVER FIND THEY'LL BLAME ON YOU! Without inspections you are liable until a few years AFTER they FIND a problem - that can be a VERY LONG TIME! Remember this is California - the only place where there are more attorneys than Realtors.

2) You don't have to read anything.
3) You can get the reports if you want them.

Now - let me ask YOU a question; if you have an agent - why are you not getting advice from them, someone representing your interests, vs a bunch of crazy people on the internet that may or may NOT know what they are talking about???

0 votes
The Medford…, Agent, Fremont, CA
Wed Jun 17, 2009

You have three questions:

1. Did they need my permission to do the inspections?

As a seller in the state of California, you are required by the contract and obligated by same to provide full access to the buyer so they can examine the property thoroughly – this includes inspections. You do not need to grant them permission; the contract already does that for you. Buyers need to be able to fully assess the condition of the property even if they are buying it “AS-IS.” There are numerous sections of the contract and disclosure documents warning the buyers to secure inspections by licensed individuals. It’s your responsibility to ensure that they have access to do so in a timely fashion.

2. Am I obligated to read the reports?

Once an inspection has been performed, the report becomes a part of the public record for the transaction. If the buyers back out because of any findings in the reports, you, as the seller, are obligated to fully disclose this to the next buyer and provide them with copies of any existing reports. It might seem unfair, but under California disclosure law, it is very real. To hide any inspection reports or known facts is illegal. Since the inspection reports are a part of the transaction records, you should not only read them, but your agent should require you to sign a receipt for them as well.

3. Is my real estate agent obligated to see and send me the reports from the buyers?

Yes, your Realtor must provide you with copies of any inspection reports and ask that you sign a receipt stating that you have received a copy. In addition, any diligent agent reads ALL the documentation that is pertinent to a specific transaction: inspection reports would certainly fall under this category.

Let me know if you have any other questions in this regard.

Web Reference:  http://www.carlmedford.com
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