Buyer May Want To Waive Home Inspection

Question: In a recent column you said that, if the seller was unhappy with the sale price of the home and as a result would not allow a home inspection by the buyer, the buyer could waive the home inspection. In other words, you said that the buyer should “suck it up” because the seller wanted more money! You obviously do not understand the terms of the AAR Purchase Contract. First, the seller has signed the AAR Purchase Contract, and therefore has agreed to all terms and conditions, including a home inspection by the buyer. Second, lines 302-303 of the AAR Purchase Contract explicitly states that the “seller shall make the Premises available for all inspections and walkthroughs upon reasonable notice by Buyer.” Why do we have a legally binding AAR Purchase Contract at all if you give this type of advice to sellers, buyers, and real estate agents? You’re basically saying that anyone at any time can “change their mind” after signing the AAR Purchase Contract. Maybe you should re-read and fully understand the AAR Purchase Contract before publishing this misinformation.

Answer: Thank you for your comments, which were shared by several other readers of this column. First, if there is a breach of the AAR Purchase Contract by one party, and this breach is not cured within the three-day cure period in the AAR Purchase Contract, the non-breaching party has two options: (1) waive the breach of the AAR Purchase Contract, or (2) pursue legal remedies with their lawyer to enforce the AAR Purchase Contract, e.g., get a court-ordered home inspection. Second, as I said in my recent column, if the seller refuses a home inspection, but the buyer is happy with the purchase price, and the home and landscaping look well-maintained, the buyer may want to waive the home inspection. Finally, if a home inspection is waived, but at the close of escrow the seller refuses to sign the deed to the home, the buyer will then have to hire a lawyer to file a lawsuit to get a court order for a deed to the home, and to record a Lis Pendens to prevent a sale of the home to another buyer for a higher price.