Do Pre-Inspections need to be disclosed?
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Dear Phyllis,
We have lived in our 85-year-old Glendale home for 40 years. Last year, on our Realtor’s advice, we ordered a pre-inspection before listing the property for sale. We listed the home in September. Before we held a single open house, our agent urged us to accept an offer from a flipper. Because we were unsure whose interests the agent was representing, we canceled the listing.
We still want to sell the home, and we need to know whether we must disclose the pre-inspection. The inspector was very critical, but we repaired some of the items before listing. We did not address other comments, such as the note about our water heater being “old,” even though it works fine. Nothing to hide
Dear Nothing to hide,
I understand that you paid for the pre-inspection for your benefit. You are required by law to disclose to your buyer material facts regarding defects, deficiencies, etc. within the time frame specified in the California Real Estate Purchase Contract.
Pre-inspections must be disclosed. You can hire the inspector to return and re-inspect the home. The inspector can note which items you have repaired and which remain. You can then provide both reports to the buyer.
Providing an inspection report to the buyer during offer negotiations should avoid the need for any renegotiation after the buyer conducts his own inspection. Likely, your buyer will hire their own inspector to check the home. Their inspector will also note that the water heater is near the end of its lifespan.
Or you could copy all the defects and deficiencies noted on the report and make notes of which items were repaired, by whom, and when. Remember, if you overlook an item on the report, you may have liability at a later date.
I am not an attorney, but I am concerned that if you fail to disclose this inspection, you may have a big liability, especially if the buyer were somehow (and it has happened) to end up with a copy of your pre-inspection. When it comes to disclosures, it’s better to be safe than sorry.
Thanks,
Phyllis
