What Sellers Should Know About the Inspection Period
In my previous article Inspection Periods in Florida Sale Contracts for Buyers I explained the Inspection Period from the Buyer’s perspective and how it provides an opportunity to thoroughly evaluate a property before moving forward with the purchase. In this article, we’ll look at the process from the Seller’s perspective and discuss how to respond when a Buyer requests repairs or repair credits under an “As Is” contract.
The Seller’s Responsibilities During the Inspection Period
The Seller must cooperate and make the property available for a Buyer’s inspection. The Seller must disclose any known issues and/or material facts about the property. I always attend the Buyer’s inspection and request that the inspector perform a “wrap-up” or “summary” at the end of the inspection so I can make a note of any important findings. After the inspection, the Buyer will either accept the property “As Is” or if there are any significant problems that were not readily and visibly observable or disclosed prior to the Inspection, the Buyer might request a credit at closing or for the Seller to make repairs prior to closing.
The actual dollar amount of the credit can be negotiated between the Buyer and Seller with the assistance of their Realtor(s). If the Seller does not agree to provide a credit or do repairs, then the Buyer is entitled to a refund of their full deposit as long as the Inspection Period of the AS IS contract has not expired. I recommend a Release and Cancellation form be executed for the protection of all parties. However, the Buyer may not choose to exercise their option to be released from the contract and will proceed with the transaction.
Should Sellers Review the Buyer’s Inspection Report?
It is customary for the Buyer to provide the Seller with the Inspection Report when requesting a credit or repairs. I recently had a colleague who lives in another state discuss an alternate method when representing a Seller; they do not review the Inspection Report – rather, they obtain the desired dollar amount for a credit or the Buyer’s repair list. The reasoning is if they are not provided with an Inspection report and the current deal falls through, then the Seller or Seller’s Realtor is not obligated to disclose any issues found by the former Buyer’s inspector to the next Buyer.
Have Questions About Buying or Selling a Home?
Whether you’re purchasing your first home, preparing to sell, or simply have questions about Florida’s “As Is” contract and the inspection process, I’m here to help. Every real estate transaction is unique, and having an experienced Realtor by your side can make all the difference.
If you’re thinking about buying or selling in Hobe Sound, Jupiter, Stuart, Palm Beach Gardens, or the surrounding South Florida communities, I’d be happy to guide you through every step of the process. Contact me today to discuss your real estate goals and let’s make your next move a successful one.
