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Updated almost 4 years ago on . Most recent reply

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Tara Piantanida-Kelly
  • Investor
  • Caledonia, NY
41
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114
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Seller's agent shared buyer's inspection report without consent

Tara Piantanida-Kelly
  • Investor
  • Caledonia, NY
Posted

We are the buyers in a 4-property multi-family deal.  The property inspector we usually use wasn't available. The seller's agent/listing agent recommended someone she's used before, and we agreed to hire him for the job. He requested/demanded full payment ($1,500) before the reports were delivered. We complied (that's on us) and paid him $1,500 on Monday, October 26. He delivered four reports on Monday, October 26 - to the seller's agent. By Wednesday, we still hadn't seen any reports, so we asked about them. The seller's agent then forwarded the reports to me on Wednesday afternoon. The email she forwarded to me shows that she sent the reports to her client, the seller, as soon as she received them on Monday. 

She shouldn't have received the reports at all, and we called the property inspector about it. The property inspector said something about thinking that the seller's agent was representing us, and he apologized. On a scale of inappropriate to unethical to illegal, 1) where does the property inspector fall on sending the reports to the seller's agent and 2) where does the seller's agent fall on sharing our inspection reports with her client without our consent? 

I really just want to know what kind of leverage it gives us in renegotiating the deal. (The inspection reports showed some things that need addressing immediately.)  What would you do? Seller's concessions? Ask the seller to cover the cost of the four appraisals (about $1400) to compensate? I'd love to hear your thoughts. 

Most Popular Reply

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Will Fraser
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
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Will Fraser
  • Real Estate Broker
  • Salt Lake City & Oklahoma City
Replied

Hi @Tara Piantanida-Kelly, I'm sorry to hear about your frustrating surprise here!

The fact that the seller obtained it from the inspector seems like the piece of the puzzle that is most regrettable here.  Depending on your state's specific real estate contract the inspection report may be required or expected to be provided to the seller, as it is in my state (though this is a little known fact).  

I personally wouldn't push on it at all, but would speak again with the inspector and emphasize how inappropriate that was. 

I personally provide the inspection report to the listing agent and seller every time so that they can understand how reasonable I'm being by not asking them to fix all of the things that need to be repaired on the home.  Perhaps them having a few extra days to stew on the report will work out to your benefit in the end.

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