Inspection Reports and Repair Bids: Know the Difference

Q: In the inspection contingency contained in OREF 001 – Residential Real Estate Sale Agreement there is language that states that unless the seller requests a copy of the inspection report, the buyer is not supposed to send it to the seller. I have two questions. First, if the buyer does send the report to the seller without a written request from the seller, does that void the inspection contingency? Second, are bids for repairs considered inspection reports and therefore forbidden from being sent to the seller without a written request?

A: No. Providing the inspection report to the seller without a written request does not void the inspection contingency. While doing so breaches the terms of the Sale Agreement, the Agreement does not provide that this action terminates or waives the buyer’s inspection rights. If the seller believes they were damaged by the disclosure, any resulting dispute would be addressed under the Agreement’s Dispute Resolution provisions.

Repair bids, estimates, and contractor proposals are not inspection reports. As a result, the restriction on providing inspection reports does not apply to those documents. If the buyer wishes to support a repair request with bids or estimates, they may provide those documents along with the Buyer’s Repair Addendum without violating the Sale Agreement.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.