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Does a Seller have to Disclose an Inspection Report He Didn’t Read?

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09/01/2013 | Author: TAR Editorial Staff

My seller received an inspection report from a buyer in a transaction that was terminated. He never opened the report. Does he have to disclose what’s in that report to potential buyers?

A broker or seller who receives an inspection report is charged with knowledge of the information in the report. This is true even if the broker or seller does not open the report. If an inspection report reveals material defects, the seller and the broker are obliged to disclose those defects to subsequent potential buyers.

The seller and broker should provide a copy of the report to the subsequent potential purchaser along with the seller’s disclosure notice, thereby providing all of the information the seller and broker have with regard to any known defects.

Categories: Legal
Tags: legal, disclosure, inspection reports, sellers