If a transaction falls through based on an inspection, are the seller and listing agent required to reveal those defects to a subsequent buyer?
Yes. The sellers should adjust the seller disclosure sheet, unless they have the problems repaired. If the problems are NOT repaired, the listing agent MUST disclose those items, even if the seller doesn’t. A buyer has a home inspected and that inspection reveals lots of problems. The buyer wants out of the transaction, based on the report, so a copy is given to the seller. The seller puts the house back on the market and reveals the defects. Can the seller show a subsequent buyer the report, or is it “owned” by the first buyer? Per Betsy Urbance: “If a buyer gives the seller a copy of the report, I assume the seller can use it for his information. However, my guess is that the inspector has limited the scope and permissible use of the report to the buyer who paid for it, and there will be language in the report to that effect. That is one concern. In addition, it is quite possible that the inspector has a copyright on the report, either at common law or by registration.
Related Questions
- If a transaction falls through based on an inspection, are the seller and listing agent required to reveal those defects to a subsequent buyer?
- What happens if a seller cancels the transaction, does not send the wine to Vinfolio, or one or more bottles fail Vinfolios inspection?
- What is the responsibility of the Seller’s Agent in a real estate transaction?
