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.

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.

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. 

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

Welcome Back Praful Thakkar 

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

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.

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.

Welcome back! It depends on your contract.

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. 

I have never seen that phrase.

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. 

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.

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.

Sounds like an As Is Deal

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!

In todays market we do see that.

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.

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"

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

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.

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.

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.

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.

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

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."

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).