Thread: Don't know whether to be mad or happy?

About a month ago I inspected a home and found severe flashing / stucco problems. After the inspection my clients told me they were backing out of the deal. The following day I received a call from the sellers asking for more information on my inspection. I politely explained I needed permission from my clients before I spoke with them.

I called my clients who stated they attempted to back out of the deal and shared my entire inspection report with the sellers. The sellers responded that they would have the stucco removed, repair any damage to the interior walls and have new Hardi Plank installed. So my clients were going forward with the deal and it was ok to speak with the sellers.

Long story short; after three intrusive moisture testing companies inspected the home and two out of three stated there was severe structural damage the sellers rescinded their offer to repair the home and my clients walked.

Now the sellers have made copies of my report and have included it in their disclosure for anyone looking at the home. So far I've gotten two inspections on other properties from people who looked at this house and took copies of my report.

I'm torn...mad about my inspection report being given out to anyone looking at the house, but happy I'm getting work from it. Nobody has called looking for information about the house in the inspection report.

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Considering you already got 3 inspections, from that one inspection , and most likley your origional customer will be calling you again I would be happy

I see your point, but they sound like very honest sellers. They may feel that the report has to be disclosed (well, maybe not handing out copies...).

it's not your report, you sold it, the buyers gave it away to the sellers, feeel good that the next buyers will go in with eyes wide open

Maybe include verbiage in big bold colored letters at the top of each page of the report that states "USE OF THIS REPORT BY ANYBODY OTHER THAN THE LISTED BUYER ON PAGE #1 IS CONSIDERED THEFT OF SERVICES. THIS REPORT IS NOT INTENDED FOR USE BY THE SELLER(S) OF THE HOUSE IN ANY WAY, SHAPE, OR FORM UNLESS THE SELLER IS THE STATED BUYER ON PAGE #1 OF THIS REPORT".

I know none of this is enforceable but it's a lot like the disclaimer many of us have in our inspection agreements about liability being limited to 2x the inspection fee. It may just be enough to scare some paranoid people away from reusing it or passing it along to others as part of their property disclosure.

Ken,

Your report is your best advertisement. Not sure what there is to be "torn" about.

Don't be torn. You have a marketing agent in that seller. Just make sure your name and contact information is on the report that they are passing out. Your liability lies with the original buyer/client.

The seller may be reacting to full disclosure requirements. Calf. has a law requiring that the information is now historical information and follows the property into the future. The seller may believe that they need to site the source of the disclosed information they are offering.

Ken - maybe the seller is just being smart or had advice to disclose your report.

MN Statute 513.55 -

a) Before signing an agreement to sell or transfer residential real property, the seller shall make a written disclosure to the prospective buyer. The disclosure must include all material facts of which the seller is aware that could adversely and significantly affect: (1) an ordinary buyer’s use and enjoyment of the property; or (2) any intended use of the property of which the seller is aware.

b) The disclosure must be made in good faith and based upon the best of the seller’s knowledge at the time of the disclosure.

Hope all is well!