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Weekly Membership Newsletter
January 9, 2018 • Stay Connected!
         

QUESTION:  We watched the video this morning that said the buyer's inspection should not be included with the Form 35R. If you are representing the buyer, don’t you want to use the inspection as a tool to make the seller aware of discovered material defects? That way they have to disclose them to future buyers. There is some confusion here.



ANSWER: Buyer's inspection report is for the singular purpose of informing buyer as to the condition of seller's property prior to buyer closing a purchase of seller's property. Seller does not give buyer permission to inspect seller's property so that buyer can then force seller to make repairs as the lesser of two evils perpetrated by buyer. Buyer's inspector could call out any number of asinine issues purportedly impacting seller's home (it happens often) and then the buyer broker who delivers that report to seller and/or listing broker would cripple seller with that report so that seller has to succumb to buyer's demands. That approach is under handed and wrong.
 
Buyer's broker will be a listing broker at some point. And ... buyer will be a seller at some point. When the roles are reversed, will the new seller and listing broker want to be blackmailed in that way? Should a listing broker have to explain to seller that seller must now, for example, include an inspection report with a Form 17 where the previous buyer's inspector found that the "home may be contaminated with mold" when that statement is true of every house on the planet but that statement is likely to send future buyers running for the hills? How should a REALTOR explain that a fellow REALTOR, held to a higher standard of professional care, saddled seller with this obligation so that seller would have to submit to the demands of buyer, regardless of reason?
 
Form 35 specifically excludes any obligation on buyer to include buyer's inspection report with buyer's Form 35R because of the risks to seller. As an industry, we have concluded that the risk to sellers is intolerable. Frankly, if listing brokers become aware that buyer's broker has a reputation for sending entire inspection reports, it should be expected that listing brokers would discourage their sellers from allowing buyers represented by buyer's broker to inspect seller's house. If those buyer wanted to purchase seller's house, listing broker may advise seller that buyer should purchase without conducting an inspection and if buyer was not willing to do that ... then buyer could find another house to purchase. That is how serious this issue should be considered from a seller's perspective.
 
Buyer has a free right to terminate the purchase agreement based on Form 35. If a buyer does not want to purchase the house, then buyer may terminate the agreement. It is wrong to send seller a copy of buyer's inspector's report specifically for the purpose of trying to force seller to take action based on findings reached by buyer's inspector, findings that may or may not be true but that damage seller merely in the delivery of the report.

 

The Legal Hotline Lawyer does not represent Washington REALTORS or its members. To browse through our database of past Q & A's, visit www.warealtor.org. Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. Please submit questions to legalhotline@warealtor.org . Please tell us your NRDS number when you e-mail the Hotline with your question.


 

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Region 12 VP Application Deadline January 15th
The Regional Vice Presidents of the National Association of REALTORS® consist of 13 individuals who are appointed to oversee the work of the National Association in their respective region and act as the representative of the President in such matters as may be assigned to them. Interested in applying for this important position?  The deadline for application is January 15th. Review qualifications & guidelines here.  Find the application here.  For more information please contact Stacie.Weedon@warealtor.org.
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The Tax Cuts and Jobs Act
The National Association of REALTORS® has put together a very helpful webpage detailing an Issue Brief to help you understand what The Tax Cuts and Jobs Act means for homeowners and real estate professionals. They've broken it down for us in very digestible sections...

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Be Prepared for Legislative Day
Download the Washington REALTORS Events App to help you stay connected and access materials during our Legislative Day event next week. Access the agenda, maps, meeting materials, network with other brokers, and more.

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New Year’s Resolution:
Update your REALTOR.com profile...
It is free & effective for members. Add photos of your marketplace, your areas of expertise, plus client recommendations. You may even want to sign up for reviews. Here’s how.

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NAR Leadership Academy Accepting Applications
REALTOR® University is excited to present NAR's 2019 Leadership Academy. Their Leadership Academy identifies, inspires and mentors emerging leaders from the local and state level for the National Association of REALTORS®. The NAR Leadership Academy is now accepting applications for 2019. Deadline is March 9, 2018. Apply today!
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Primary Mortgage Rates Survey
(updated every Thursday)  Source:  Freddie Mac
 
 January 04, 2018      30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.95%  3.38%  3.45%
 Fees & Points  0.5
 0.5
 0.4
 Margin  N/A  N/A  2.75



 December 28, 2017  30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.99%  3.44%  3.47%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.75



 December 21, 2017  30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.94%  3.38%  3.39%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.75



 December 14, 2017  30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.93%  3.36%  3.36%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.75



 December 7, 2017  30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.94%  3.36%  3.35%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.75





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 UPCOMING CLASSES
Date Class Location CE  
25-JAN
Intro to WA Landlord Tenant Law
Seattle
3.0
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26-JAN Current Issues in WA Residential RELangley3.0More info...
26-JANThe Best of the Legal Hotline Langley4.0More info...
31-JAN Regional Professional StandardsOlympia7.5 More info...
14-FEB NAR Code of EthicsBellingham3.0More info...
28-MAR NAR Code of EthicsWalla Walla  3.0 More info...
28-MAR Current Issues in WA RE Walla Walla 3.0More info...
29-MAR Best of the Legal HotlineKennewick4.0More info...


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