Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners)

Spam prevention
Rainmaker
693,580
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Praful Thakkar 

A home buyer may back out of the purchase contract based on a "home inspection for informational purposes only," provided you included a home inspection contingency.   Otherwise, this language is on par with an "as-is" transaction.   

Even with "as-is" listings, nothing prevents a buyer from attempting to negotiate repairs.  

This comment addresses the import of these terms, not the wisdom of their use.

Feb 27, 2021 05:39 PM
Rainmaker
1,750,451
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
The House Kat

It would depend on what the rest of that paragraph in the contract stated, but my read of "Home Inspection for Informational Purposes Only" is that the buyer will not ask for any repairs.

Feb 27, 2021 03:59 PM
Ambassador
2,984,770
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

What does the contract say?  

Inspection contingencies may mean something different in one state than another. 

In California, buyers have various contingencies. Property condition is one of them.  If the contingency has not been removed, the buyer can release the contract. 

If "Home Inspection For Informational Purposes Only" is contained in the inspection report, I'd ask the inspector to clarify the intended meaning. 

 

Feb 27, 2021 04:48 PM
Rainmaker
5,280,802
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Praful,

You have answers from Kathleen Daniels, Probate & Trust Specialist and Kat Palmiotti . No need to repeat...It is is nice to see you here again.  A

Feb 27, 2021 04:55 PM
Rainmaker
1,153,173
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Welcome Back Praful Thakkar 

Contract aside, it means they are doing due diligence but not planning to submit a request for repairs. (Less Contingencies).

Feb 27, 2021 06:01 PM
Rainmaker
856,422
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Contractual options vary from state to state and transaction to transaction.

The Home Inspection can provide "Information"...I would hope so...but what you can do with that information will depend on the terms of the contact.

 

Feb 27, 2021 05:48 PM
Rainmaker
390,075
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

Maryland REALTORS® has an "AS-IS" inspection form that the Buyer is able to do what ever inspections they prefer for X # of days at their sole discretion. If they find unacceptable they may declare the contract null & void.

Feb 28, 2021 03:59 AM
Rainmaker
672,597
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

Welcome back! It depends on your contract.

Feb 27, 2021 06:03 PM
Rainmaker
957,748
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

The buyer is implying they will not come back looking for concessions for repairs. We must go back to the contract documents for conclusive language regarding this. 

Feb 28, 2021 05:57 AM
Rainmaker
810,901
Peter Mohylsky. Broker Associate
PrimeSouth Properties - Santa Rosa Beach, FL
THE BEACH IS OPEN AND WAITING FOR YOU

I have never seen that phrase.

Feb 28, 2021 03:58 AM
Rainmaker
476,494
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

Welcome back Praful Thakkar.  I guess that can be interpreted so many ways.  We need more info or the rest of the sentences that came with it or the scenario.  For example, a listing agent giving a copy of a home inspection to a buyer's agent and inform the buyer's agent that this home inspection is for informational purposes only.  In other words, if a buyer decides NOT to do a home inspection and just depends on that inspection, seller is at no fault because it is informational only. He didn't "force" the buyer to accept the inspection.

In my area, we have option period, which is an unrestricted right to terminate. In other words, buyer can terminate for any reason within that time frame specified as the option period on the contract regardless there's an inspection or not. 

Feb 28, 2021 06:04 PM
Rainmaker
3,825,970
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

We are a due diligence state and the buyer can back out for any or no reason and the reason does not need to be provided. Buyer forfeits the due diligence fee in this regard. Our contracts which state sale is as is and inspections that say for informational purposes only have no impact on a buyer's ability to pull out.

Feb 28, 2021 05:40 AM
Rainmaker
700,675
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

I would read that to mean they want to make sure nothing is seriously wrong with the house. Sometimes buyers waive the repair request. However, they want to make sure there isn't anything such as structural or mold to keep them from moving forward.

Feb 28, 2021 05:35 AM
Rainmaker
2,004,837
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Sounds like an As Is Deal

Feb 28, 2021 05:14 AM
Rainmaker
3,946,880
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

I have never seen that phrase. Sounds like "As is" but buyer may perform an inspection to know what they will have to address. To me, it sounds silly!

Feb 28, 2021 04:25 AM
Ambassador
5,138,434
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

In todays market we do see that.

Feb 27, 2021 07:31 PM
Rainmaker
4,658,527
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I know each of our states have different views of many items in our contracts.  In Colorado, would mean they will do an inspection, ask for nothing, but can use this section to terminate.

Feb 28, 2021 06:50 AM
Rainmaker
578,254
Ernie Steele
Berkshire Hathaway HomeServices Homesale Realty - Lebanon, PA
Call me, let's get started!!! 717-273-3774

In my area, if the phrase "home inspection for informational purposes only" is put into the listing information in the MLS, the sale is "AS IS, WHERE IS, HOW IS", there's no 'out' unless the mortgage is refused by the lender. 

We also use the phrase "seller will make NO repairs"

Feb 28, 2021 06:40 AM
Rainmaker
3,290,482
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

That is what it is suppose to be, but in reality they can then get out through say the mortgage contingency by vaiours ways if they find something they dont like

Feb 28, 2021 06:06 AM
Ambassador
3,198,736
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

That's what it sounds like to me.  I saw this happening back on 04 to 05 quite often.  Of course it would all be spelled out in language that is easy to understand for both buyers and seller.

Feb 28, 2021 11:23 AM
Rainmaker
1,352,748
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

It reinforces the "as-is" language of the contract and that the seller will not do any repairs.  Nothing prevents a buyer from asking for repairs (so long as that contingency is in place), however the seller is not obligated (ever) to make repairs and this helps reinforce that.  It's usually placed in a counter offer after the line "Seller will not make any repairs."

 

It's more common in the beginning of a hot seller's market with multiple offers.

Feb 28, 2021 08:18 AM
Ambassador
3,280,898
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

In our area, it means buyers purchasing in an HOA community are attepmting to use their right to void under HOA docs as a way to slide out if they don't like the inspection.  It's one of the reasons I have HOA docs IN HAND before hitting the market.

Feb 28, 2021 08:12 AM
Rainmaker
1,686,132
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

well, I'm sure a buyers  agent could write that in on an 'as-is' situation. 

Maybe that means the buyer won't go back to the seller for any repairs?

In IL, that doesn't mean anything. They can still back out if it is not acceptable.

Feb 28, 2021 06:39 AM
Rainmaker
801,457
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I think it means the seller is not inclined to do anything about any possible findings, but not sure.

Mar 01, 2021 12:09 PM
Rainmaker
861,390
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Reads very much like every AUCTION property I've seen for sale.
However, 'for informational purposes only'  in an MLS sale means  "I don't have time for that."

Mar 01, 2021 05:16 AM
Rainmaker
743,924
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

Means that the seller isn't opening their wallet for anything but unfortunately the buyer can still back out (unless that was tweaked during attorney review). 

Mar 01, 2021 04:50 AM