There is reportedly an emerging trend in real estate where some buyers are inserting clauses into their offers to purchase where the deal is not contingent on the outcome of a building inspection. It is being pitched as a solution to situations in hot markets because the seller will be more likely to accept the offer if there is no chance of a consequence stemming from a building inspection. In my view, the entire purpose of a building inspection is to have the building condition assessed as part of the buying process, which can, and should impact the price paid for the real estate asset. There are potential legal issues as well. What if the building inspection reveals major issues that a buyer alleges should have been disclosed prior to sale. I think there is more potential for buyers to back-out of deals and in some cases face litigation. If there is any legislation or protection for consumers it should be that a grace period be mandated for building inspections so that this consideration is taken away as a bargaining chip by the seller. Remember that sellers are usually buyers once they have sold their property so everyone ultimately benefits from a fair playing field. #recg #commercialvaluations #inspection #property #realestate #building #litigation #brokers
- Demitry Omrin