Who owns the appraisal, the pest inspection report, the radon report, the whole house inspection report? Buyers and/or homeowners often believe that they do. Ownership would infer that they can then pass on that report to other parties.
A homeowner who plans to list her house may have various inspections done in order to get the house market ready and price it. She then wants to allow potential buyers to use those reports.
The bank orders an appraisal and then gives a copy to the buyer. Buyer's agent provides a copy of the appraisal to the seller's agent. When the contract in place fails, the seller then wants to provide that appraisal to subsequent buyers.
A homeowner pays for and receives a radon report which a buyer under contract specified as a contract condition. The buyer then fails to obtain financing.
A seller was provided a copy of a home inspection report as supporting evidence for a buyer who asked for repairs and then failed to obtain financing.
In all four of those instances, the seller wants to reuse a professional report in subsequent negotiations. The same may be true for appraisals and surveys. In other words, the homeowner wants to use the report for something other than its original intent.
The problem comes when the reports are copyrighted, and most are. Only the entity which ordered the report has the right to use it and then only for its originally intended purpose.
In the case of the appraisal, it is the lender who actually owns the appraisal--not the buyer, who is the one who eventually pays for it. Generally speaking, the other reports are owned by the entity that paid for it, but they are for one-time use. They cannot be reused to avoid paying another fee.
This is very often an unpopular reality for all parties, except for inspectors and appraisers whose interests are protected by copyright law. Before you pass on a report to another party, be sure you have the right to do so.
Comments (1)Subscribe to CommentsComment