During the inspection period, the buyer retained a home inspector who produced a written report identifying a property defect of which the seller was previously unaware. Pursuant to lines 194 – 195 of the Arizona Residential Resale Real Estate Purchase Contract (purchase contract), the buyer provided the seller with a copy of the inspection report and then timely canceled the purchase contract based on the results of the home inspection. Thereafter, the seller entered into a contract with a new buyer.
Issue: Must the seller provide the new buyer with a physical copy of the first buyer’s home inspection report? Can Another Buyer Access The Home Inspection Report?
Answer: No. Although sellers have a duty to disclose known facts materially affecting the value of the property that are not readily observable, the seller is not obligated to provide the new buyer with a copy of the first buyer’s home inspection report. In fact, the better practice is for the seller to update their Seller’s Property Disclosure Statement (SPDS) to ensure that it includes the information contained on the inspection report, and then provide the updated SPDS to the new buyer. Although Arizona statute does not preclude the seller from conveying the actual report, doing so may lead the buyer to rely on that report and not obtain their own independent inspection. Since the first home inspector owes no duty to the new buyer, it is best for the buyer to obtain their own home inspection.
This tip is provided from Show Appeal Realty.
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