We’ve talked before about the inspection period as initiated by the Arizona Association of REALTORS Residential Resale Purchase Contract – the boilerplate calls for a 10-day inspection period but this can be shortened, lengthened or in some cases eliminated by what else is written in the contract or, in the case of a bank owned home, in the addenda.
At the end of the inspection period there normally are three choices for a buyer – accept the home as is, cancel the contract and have the earnest money returned, or ask for repairs. Whatever decision is made, it’s indicated on AAR’s Buyers Inspection Notice and Seller Response form. This also is the form where the buyer can notify the seller of any non-working warranted items – plumbing, electrical, and several others – that will need to be in working order at the close.
(Keep in mind that on a bank owned home purchase, which nearly invariably is an as is sale, a buyer still can ask for repairs but it’s much like asking my children to pick up their rooms – in the realm of possibility but not going to happen in this lifetime or the next.)
Once the sellers receive the BINSR from the buyer, they have five days to decide what if any repairs they are going to take care of. If they agree to all the repairs, the transaction moves forward. If they agree to none or only some of the repairs, the buyers then have five days to decide if they still want the house.
Those are the basics … so what happens in the form isn’t sent to the other party by the deadline? The defaults:
In the case of the BINSR at the end of the inspection period, if the buyer doesn’t give the seller a BINSR it means he or she is accepting the house as is.
If a seller has a BINSR in hand and doesn’t respond within the five days, it means the seller will not be making any repairs to the property.
Though it’s been known to happen, you really don’t want the state of the transaction to rely on the defaults.
So, there’s the overview? Got other questions … let us know!