Real Estate Contract: Does the Buyer's Agent Need Written Permission for Inspection Report to Seller?
When it comes to the term 7.0 real estate contract, which is commonly used in states like Illinois, there's often confusion regarding the necessity for written permission from both the buyer and the seller to share the inspection report with the seller. However, this debate often revolves around the rights and responsibilities related to inspection reports and their distribution.
Understanding the Purchase and Sale Agreement
The 7.0 Real Estate Contract (or any similar form used in real estate transactions) is typically created by real estate attorneys and revised periodically. In states such as Illinois, the contract is often used to outline the terms and conditions of a property sale. The inspection report, which is a crucial document during the purchase process, is often owned by the person who paid for it, usually the buyer.
Requirement for Written Authorization
Many experienced buyers' agents follow the standard practice of obtaining written authorization from the buyer before sharing the inspection report with the seller. This step is important because the seller has the right to inspect the report, especially if any necessary repairs are being negotiated. Inspectors typically won't send a copy of the report to the buyer's agent without explicit written permission from the buyer.
Communication and Mutual Understanding
When a buyer requests repairs based on the inspection report, the sales contract often needs to be amended. The seller will likely want to review the report before agreeing to such amendments. In most cases, the buyer's agent will send the report to the seller and then arrange a meeting or call to discuss the findings and what repairs can or cannot proceed.
It's standard practice for the buyer to provide written consent to the seller's agent. This consent is usually in the form of an email or some other documented message. The seller might request a receipt of the report as a formal acknowledgment of receiving it. This written confirmation can help avoid any misunderstandings and ensure both parties are aligned on the inspection findings and the proposed repairs.
Additional Considerations
A Property Inspection, which includes an inspection of "improvements" such as buildings, fences, and other fixtures, must be written into the text of the Purchase Sale Agreement. Depending on who pays for the inspection, the inspector may need to obtain written authorization from the seller for the inspection to proceed. If the seller is or will be paying for any required repairs, they may receive a copy of the inspection report.
In cases where the inspection report is shared, the copying or sharing should be based on a "need to know" principle. This means that only those who need to review the report for necessary decision-making should have access to it.
Conclusion
The key takeaway is that while the seller doesn't need to explicitly give permission to receive the inspection report, they do have the right to know and ensure they are informed about the condition of the property. Proper communication and documentation, such as written consent and a signed receipt, help maintain transparency and prevent disputes during the real estate transaction.