Can a seller refuse to allow property inspections?

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Red Sold rider on a For Sale sign with a family in the background.

08/05/2016 | Author: TAR Legal Staff

My seller accepted an offer on his property listed “as is” and now he doesn’t want to make the property available for inspections. I know he can refuse to make repairs, but can he also refuse to let the buyer inspect the home?

No. If you used the One to Four Family Residential Contract (Resale), the seller cannot refuse to make the property available for inspections. That form includes a paragraph that states that the seller has to give the buyer or the buyer’s agent access to the property at reasonable times and allow for it to be inspected. Refusing to grant the buyer access could result in your seller being found in default unless that section of the contract was modified.

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Categories: Legal, Sellers
Tags: legal faq, legal, sellers, forms, contracts, inspection


Comments

brad hughes on 08/15/2016

While I find the comments and answers interesting on situational advice in the FAQ section,  I wonder how many people end up confused or read a bad answer and think that is the correct answer. Maybe would be better to label the question and then provide the correct answer.

Denise Askea on 08/15/2016

The point I was trying to make is that you do not have to provide the actual report; if it is the buyers inspection report, it is not the sellers report to disseminate to other parties.  What you do have to do, however, is disclose any information that you, as the seller, are now aware of as a result of that report.

debbie russell on 08/13/2016

No you do not wait till after there is an executed contract with the next buyer to disclose the inspection report - you make it available to anyone who asks for it and you make it available to anyone who does not ask for it.  You would not withhold the inspection report until after there is a new executed contract with a buyer.

Denise Askea on 08/12/2016

If a seller has an inspection report, they are not required to share the actual report, however they are required to disclose any defectes noted in the report to future prospective buyers.  This applies whether the inspection was done by a potential buyer or if the seller ordered a pre-listing inspection.  A good practice is to update the sellers disclosure for future transactions.

Mike McEwen on 08/12/2016

I’m w/ you, Sha.

Sha Hair on 08/12/2016

Mike:
I think we are on the same page here. It is always better to disclose everything up front. That is why I always share inspection reports if we have them, but only after an executed contract with the next buyer.

Mike McEwen on 08/12/2016

A seller is not legally required to share an inspection report, but if he does not reveal all defect issues that the report covers, he is looking at a DTPA suit.  The smartest thing he can do is share the report and also repair all significant issues.

Mike McEwen on 08/12/2016

The “as is” clause really has nothing to do w/ inspections.  The purpose of that clause is to allow a seller to not make repairs if he does not want to.  On the other side, the termination option, in addition to other provisions, allows a buyer to terminate a contract if a seller is not willing to remediate an issue w/ the property.  These two features simply protect both parties.

Sha Hair on 08/12/2016

In regard to sharing the inspection report, it is required to be disclosed in the seller’s disclosure notice on page 4, section 7 if current buyer backs out and you get a subsequent buyer.  I don’t know legally if after disclosure it would need to be shared, but a good rule of thumb is to disclose what you have/know and not have to worry in the future about issues that were not disclosed in that particular report.

Stephen Williams on 08/12/2016

Regarding a previous comment Ms. Russell stated below:

“...the seller still MUST share that inspection report to all future buyers.” 

I’m just asking to educate myself.  I don’t know the answer.  But is that the law?  Where is it established that a seller must share an inspection report to all future buyers?

Thanks for any clarification anyone can give me on this question.

VIRGIL Eaves on 08/11/2016

Excellent question by Brad Corrier.  I would love to get an nswer to it.

Carmen Cowles on 08/11/2016

I have never had a problem with the seller sefusing to aloud inspections even if buyer signs the contract ass is.

Mike McEwen on 08/05/2016

FROM THE TAR NARRATIVE:  Refusing to grant the buyer access could result in your seller being found in default unless that section of the contract was modified.

Mike McEwen on 08/05/2016

If a seller modifies the contract to stipulate that inspections may not be performed and the buyer agrees, then no inspections may be performed.  This would be ill-advised, but it all depends upon what the parties have agreed to.

Debbie Russell on 08/05/2016

As is has nothing to do with the buyer doing their due diligence.  Even if no option period was purchased a buyer still has the right to conduct inspections and if the buyer throws the inspection report in the seller’s face or the seller’s agents face then the seller still MUST share that inspection report to all future buyers.  Even after the option period is over the buyer has the right to conduct inspections.  The buyer will no longer have the right to terminate for and and or no reason.  The buyer’s opportunity for due diligence ends at closing and funding and not prior.  In my humble opinion.

Mike McEwen on 08/05/2016

While it is not a good idea, a seller could instruct the agent to strike out the language regarding the seller’s permitting inspections.  If the buyer agrees then there is a contract prohibiting inspections.

Brad Corrier on 08/05/2016

While a seller can not refuse to allow access for inspections can a seller refuse to allow a specific inspector or company from inspecting the home?  If a seller has had a bad relationship with a particular inspector they may feel like that inspector would be bias toward their home.  In this instance can the seller specify that certain inspectors will not be allowed and if they can do this what is the proper protocol to allow for this?


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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