What can an agent do if buyer waives home inspection?

Gita, interesting to my mind as representing the seller if the buyer waives inspection in this state it is 'buyer beware' and it is the duty of the buyers agent to do due diligence.  I have had 1 buyer that did bring up a deficient condition at closing (issue happened 2 days prior to closing)...closing took 3 hours and the listing agent contributed part of his commission to the buyer to get the deal closed...can be dicey.

Well said Gita.  I'm with you on this one.  A home inspection is very important for many reasons.  I've never had a customer refuse one.

Thanks for the article. I just assisted with my first "as is" property and we have scheduled a home inspection.  It is an estate sale and the property was bought in 1963.  The house looks great but like all the iceberg photos we see, my buyer was concerned about hidden problems.  So we wrote into the offer  an "as is" home inspection contingency.  Great for us.  We get to explore this gem on March 5th. 

If you represent the buyers and they do not want a home inspection you need to have them sign a waiver of such service.   Home inspection, mold, survey, radon, erosion, termite,  whatever you as their agent think they should have to protect them in the deal. 

Good morning Gita,

We have a state form also for a buyer to sign if they are going to waive inspections. We always recommend the buyer to get an inspection..if they choose not to they will sign off ....which reduces our liability.

Good information for prospective home buyers.  We always try to convince purchasers to have a professional home inspection.  Our experience is that most of the local investors do not opt for a home inspection.

Gita, excellent information.  Though I'm not sure how much protection a buyer who waives inspections will ultimately receive if issues come up.

Good morning, Gita.... I've had this situation in the past and I had language in the purchase and sales agreement that covered the seller and the listing agent from any repercussions later.... it was spelled out in detail.

This is great advice Gita.  The only time I don't make a huge deal about an inspection is when the buyer is a contractor that is buying the house to "flip" and has already gone through the house carefully.  Otherwise no one should skip this vital step!

Hi Gita I always encourage a home inspection , even if it is an as is sale. If the buyers still don't want to spend the money on a home inspection I always make sure to document their decision and  notify all parties thet they have  waived their right to an inspection: lawyers, realtors, sellers.  

Show me the house fax. How does anyone ever totally know what is lurking, if the place is haunted, etc until after the test ride ends. And they own the sticks and bricks.

Gita,

TX also has a waiver form.

You are always doing what's best for your clients in PA!

Buyers should be proud to work with you.

Hi Gita,

Congrats on the Featured post.

There are still a lot of Realtors here in Carlsbad that still get a "WAIVER" signed by the buyer. Just to find out things down the road. The buyers are relying heavily on the word of the Realtors. The Realtors tell the buyer  things like "it's a very good home" or

"there was an inspection a couple months ago and there was nothing found"

Or, "I know the sellers and if there was anything that should have been in the disclosure it would be in there"

I have heard all kinds of things from a buyer who was talked into signing a waiver. I am involved in a lawsuit now that was just the case.

ALWAYS get a home inspection no matter what.

Have a very good day in Bucks County, Pa.

Best, Clint McKie

Gita I always recomend my buyer clients get a home inspection. Even with a new built. But in Texas we do have a state approved form for waiving that right. If the buyer waives their right to an inspection after signing the form it is not the respondsibility of the buyers agent.

Gita, I really hope your feelings on this issue are contagious! This could be a truly benificial epidermic for all concerned in real estate transactions.

PS: Check again, it looks like you ARE featured.

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I cannot remember a single time that my buyer decided not to get a home inspection...but occasionally they will try to cut corners on getting a survey or something like that.

In that case, I send them an e-mail with my "professional opinion"  asking them to re-confirm that they are relying on their own expertise and choose not to do the test or whatever it is.

Then I print out their response and put in their file.

Talking to them and what you say, will mean NOTHING in court.  If there is some verbage buried in the contract, I do not consider that good enough, because  if you are indeed representing the buyer than you need to aditionally point it out to them and not ASSUME that they read it, or understand the pitfalls.

Get it in writing!

Eve in Orlando

Gita, Great post! having the waiver form signed is so important if the buyers are waiving the home inspection. It can protect the agent in the long run.

Great advise. It's best for the buyers to get the home inspection, but unfortunately some choose not to. The waiver at least offers some protection.

Hello Gita,

If I can make a suggestion that might help?  Choose a well written inspection report from a very detailed inspection of a previous home you have dealt with that was supposedly a gem or very good property but after the inspection it was learned to be different.  Contact the Home Inspector and ask them to sanitize the personal information and any necessary photos to protect the current owners of the home.  Create a home inspection information package to include the report, the listing information (sanitized as well), a copy of the home inspection waiver form or clause explaining it too, and either your written article or one from another source explaining the importance of a home inspection.  Provide that to your client when you sign them on and make a point to review it as well as the remainder of your agreement, operational details, etc.  Have the client sign they received that home inspection package along with the agreement paperwork.

With this information the client can see first hand just how important a home inspection can be.  If they choose to still waive the home inspection then you have done everything you possibly can to ensure they understand the importance of a home inspection.  From there it is completely up to them, and you are also well covered in that area if the client has any issues afterward as a result of waiving their rights.

We do everything we can to get a buyer to do an inspection. If they opt not to do one, we explain that they do so at their own risk. We had a buyer not do an inspection and later during remodeling found extensive termite damage. An inspection would have discovered this and may have saved him thousands of dollars. It was hard not to tell him, 'We told you so".

Gita, sounds like you have all your bases covered.

In North Carolina we have a due diligence period which allows the potential buyer to have every inspection imaginable.  Prior to the end of Due Diligence they can get out for any reason, or no reason.  Once that runs out they are pretty much stuck.

If my folks refuse a home inspection I tell them they better have an iron stomach.

As Eve indicated, document it all!!!

Howdy,

Like others, I have never had a client who hasn't done an inspection.  On occasion however, during an inspection, the offer has been terminated along with the rest of the inspection!  Coldwell Banker has a form that if used should the buyer opt not to do inspections.  If you have such a buyer and don't have a company form, reach out to your board or association.  This is another important part of your paper trail.

I think you are doing all you should and have the perfect outlook to properly serve your clients.  Very few buyers waive the inspection in this area.  If fact, some still have inspections when they plan major renovations or even tear downs.

I tell them a lot of what the inspector does and why they should get the inspection.  BUT if they still refuse I will have them sign a waiver which states they are not having an inspection done against my advice.

Gita, thanks for the post, good information from everyone

Gita ~ Documenting that they made the choice is the only way to go.

I totally agree with you. Even if the seller is acquainted in any way shape or form,i.e. relative, neighbor, co-worker and always ask if there is a sellers disclosure so the buyer knows exactly what they're up against. If the buyer still insists on no inspection, I have them sign a waiver. I have suggested to the buyer often to atleast get a free estimate on the foundation. If it's free why not.Often they go ahead and pay for the inspection. I retrieve all information I can about the property, such as windstorm insurance, permits that may have applied for and approved or not. 95% of the time after gathering this information, they will go ahead with an inspection. One buyer backed out when the seller found out he was going to have an inspection. They worked with each other and the seller said to the buyer, "I've told you what there is to know about the house." Just didn't tell him the 800 sf add-on wasn't permitted. My buyer went onto another house and had an inspector already lined up. We closed on that one. All kinds of paperwork provided. The prior house belonging to theco-worker burned because of improper wiring to the add-on.

I have them agree to the home inspection prior to making the offer.  If they elect to waive the home inspection, we have a waiver form that they must sign, which points out the importance of the home inspection, the major pitfalls, etc....

I strongly suggest to potential sellers to have a home inspection and fix everything that comes up, that way they have a comfort feeling when negotiating the sales agreement that they will not be making additional price reduction or paying for work to be done.  It makes everything a little easier.

It is best for eveyone to cover themselves.

I agree with Matt, #44 - No home inspection, therefore no pest and dryrot report to give to the buyers lender when they ask for it, no way to effectively refer to professional inspection report to ask seller for repairs upfront which may be lender required repairs later in the transaction. The only time to waive inspection is a contractor buying house with cash and they have inspected it themselves.

worth  repetition... get a policy in your office to get this type of thing in writing, a waiver form is very worth while your file and to reiterate taht you did in deed suggest one and it was their sole decision to waive one.

Thanks for sharing Gita.  I had a couple buyers who did not want to have inspections done and I was really worried about it.  I did exactly what Mike & Eve (#28) did by getting in writing that I recommended a home inspection be done and the buyer waived their right to do so.  The last thing you want is something to happen after the fact and have your client come after you.  CYA.

In our California state forms there is a true GEM of a form called a "Buyers Inspection Elections" form with 31 types of inspection services available ranging from Asbestos to Zoning.  The buyer checks each box (Yes or No) indicating that they understand an inspection service is both available and recommended by the brokers involved.  

When a buyer wants to waive their inspection, I always have them sign an Inspection Waiver Form.  Unfortunately after they move in and things begin to break down, they always wants to blame the seller or the agent.  When that happens, I refer them back to that signed inspection wavier form.

Hi Gita,

You may want to share some real life stories with your buyers (and sellers).  I'm sure your local home inspectors can fill you in on items that may be of particular concern in your area.  Just two weeks ago in Southern California, I came across a furnance that was the subject of a recall about twenty years ago.  The system was still functional -- but this model has been responsible for over 50 house fires in California. 

A good home inspector will likely find areas of concern that most others are not going to be aware of. 

We have several disclosures that would cover this issue and most that refuse sign off several times on it.

You can take that horse to water, but you can't make it drink! Fortunately, I don't often encounter someone who won't do an inspection, especially once I've explained why it's important (same with surveys). But if they choose in the end not to do so, I also have them sign a document that shows I discussed it with them, made them aware that the service is available and that they declined it. You want that protection if they come back at you one day and insist you never told them about having an inspection.

Obviously you can't force a client to get a home inspection.  But there is a problem with this that affects you.  Home inspections by licensed inspectors was invented to protect Realtors from being accused of knowing a property had structural and mechanical issues but didn't reveal them to his client.

I never had a client refuse a home inspection.

That being the case, if I ever had/have I would call my Errors and Omissions carrier and ask what they suggested since they are the ones who will be at risk.  Perhaps they have a disclosure/hold harmless form that, signed, woulr protect the agent and them as the insurer.

Nevertheless, if they do or don't, you at least put them on notice, and if they didn't react and a suit were later filed, they couldn't legitimately put the blame on you.<!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:TrackMoves/> <w:TrackFormatting/> <w:PunctuationKerning/> <w:ValidateAgainstSchemas/> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:DoNotPromoteQF/> <w:LidThemeOther>EN-US</w:LidThemeOther> <w:LidThemeAsian>X-NONE</w:LidThemeAsian> <w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> <w:DontGrowAutofit/> <w:SplitPgBreakAndParaMark/> <w:DontVertAlignCellWithSp/> <w:DontBreakConstrainedForcedTables/> <w:DontVertAlignInTxbx/> <w:Word11KerningPairs/> <w:CachedColBalance/> </w:Compatibility> <w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel> <m:mathPr> <m:mathFont m:val="Cambria Math"/> <m:brkBin m:val="before"/> <m:brkBinSub m:val="--"/> <m:smallFrac m:val="off"/> <m:dispDef/> <m:lMargin m:val="0"/> <m:rMargin m:val="0"/> <m:defJc m:val="centerGroup"/> <m:wrapIndent m:val="1440"/> <m:intLim m:val="subSup"/> <m:naryLim m:val="undOvr"/> </m:mathPr></w:WordDocument> </xml><![endif]-->

I agree, never a good idea for a buyer to waive their right to a home inspection. I like the idea of referencing photos from the home inspection. Nice post.

Home inspections were just coming into use when I let my license go away, so we didn't have many of them. But I'll always remember Janice.

She had an inspection on thefirst home she purchased through me. Unfortunately, the inspector noted that the attic fan was in working order - when there was NO attic fan. (And judging from the decidedly unladylike language she used when attacking the listing agent, the attic fan was was important to her.)

So - since the inspector on the first house had been "incompetent," she decided not to have an inspection on the next house. She did it herself. The problems she discovered after the purchase ranged from carpenter ants in the attic to a light fixture over the kitchen range that had never been connected to the panel box, to a heating system that just plain didn't work!

Yes - get an inspection! (But get references.)

As many have pointed out, document - document - document that they have been offered and encouraged to have an Inspection, but have refused! CYA

Alabama is still a Buyer Beware State, but, I don't take chances! Even a Dismissed Lawsuit can cost $$ and much bad publicity in a small town.

It is definitely important to have the buyer document that he waived the inspection.  I have them sign two documents acknowledging that they are waiving an inspection.

This happened with one of my listings. The buyer waived all inspections, then a few weeks after closing he started whining about this that or the other thing.  If he had been my client, I would have had him sign a waiver that he was strongly advised to have a home inspection and that he declined.  We do have it occasionally but it is rare.

perhaps relay to the buyers some stories about how a buyer was really saved by getting an inspection...especially on an older home

Hi Gita, we have a standard waiver we make them buyers sign.

Gita  One story I like to tell is an investor wanted to buy a foreclosure.  On my advice I suggested the house would need new windows, paint, roof was questionable...but let's hire an inspector.  The inspector "red flagged" saying it would be cheaper to tear it down than fix all the problems.  My client thinks the inspector and I walk on water.  Lost the sale but still have my client!  Works for me every time.  Great blog

The home inspection is a contingency to an offer to purchase. From the listing side, the less contingencies the more flexible my sellers tend to be with price. Strongly suggesting a home inspection is more of a CYA for the agent than necessarily working in the best interest of the buyer. Otherwise we would be recommending an electrician, a plumber, a roofer, a heating and cooling person, a structural engineer, a pest inspector, a septic person and a private lab to test the water. Oh- and a radon (the computer type, not the packet that hangs in the basement for a couple days and you don't know if the seller moved it outside for most of that time), and a lead paint inspection. Maybe some soil samples in the yard- never know what that property was used for 50 or 75 years ago. THAT would really be looking out for the best interest of the buyers - if they could afford it.

Not all buyers are alike. Some know more about building and maintaining houses than many general home inspectors. Some will benefit from having a general home inspection. With the low inventory we are experiencing, a home inspection contingency could cost someone the house they really wanted. And I've rarely run across any unexpected problems during a home inspection. My buyers and I tend to go through anything they will write on quite thoroughly before making an offer. I don't hold myself out to be a home inspector or builder, but part of an agents job is to point out potential issues. It doesn't take a builder's licence to see water marks 2 feet up a basement wall.