The Inspection Period – Process & Timelines

White Mountains AZ Real Estate Inspection Period Guide - Bruce & Pam Wachter with West USA Realty. We provide our clients with the highest possible service and representation. Below we provide an outline of the inspection process when buying or selling White Mountains AZ Real Estate.

All Arizona Residential Purchase Contracts are for the purchase of a property “as is”. Sellers are not obligated to make repairs. However, the Contract also allows for inspections of the premises by the Buyer. Your inspection period is the time allotted per the Contract for you to do “due diligence”; that is, investigate all things material to your decision to go forward with your purchase. All due diligence must be accomplished during the Inspection Period per the Contract.

You will receive from the Seller a disclosure document called the “Sellers Property Disclosure Statement” (SPDS). This document outlines what the Seller materially knows about the property. You will review the disclosure and if you have any questions or need clarification on any items, you will request, through your agent(s), that the Seller answer. You will also receive an Insurance Claims History from the Seller provided by his insurance carrier that indicates the claims history over the time the property was covered under that owner.

Title/Escrow may also send to you, as applicable, CC&Rs, HOA, and other informational Title documents for your review. All questions about these Title documents should be directed to your assigned Escrow Officer or Title Officer.

Your inspection period also includes your Home Inspection by a licensed Home Inspector which must take place during the inspection period. Also may include a termite/pest inspection. You are free to meet your inspector at the property. But it is advised that you attend just the “wrap-up” rather than the entire inspection. The Inspector needs time to concentrate and focus on the home. Likely your agent(s) will also attend the wrap-up. This is a time to ask the Inspector questions, or get clarifications on findings that are important to you.

You will receive the Inspection report as will you agent(s) after the physical inspection. You will go over the results and determine if there are issues you want the seller to address via repair/replacement/remediation. Concentrate on the most important issues. Before the expiration of the inspection period subsequent to your receipt of the Inspection Report, you MAY have contractors or service providers visit the property for repair bid purposes.

Your agent(s) will then prepare a document called “Buyers Inspection Notice Sellers Response” known as the “BINSR”. Here you can do one of several things:

1. Accept the property in its current condition

2. Reject the property and cancel the Contract

3. Request repairs from the Seller

4. Request repairs OR offer the Seller the option of a credit at close of escrow. Repair requests must be clearly presented and refer to the specific issues per the Inspection Report. The BINSR must be submitted to the Seller during the Inspection Period. If you fail to do that, you have agreed to go forward without repairs, and you cannot cancel the Contract without losing your earnest money over condition issues. After submission of the BINSR, the Seller has five (5) days to respond to you. He can:

1. Agree to the repairs

2. Decline to make repairs

3. Do some repairs, but not all

4. Offer a credit in lieu of repairs via an Addendum

5. Repair some issues, offer a credit for those not addressed

6. Not respond. A non-response is a no.

After you receive the Seller’s response, you have five (5) days to decide how to proceed. During this time there may be further negotiations. A failure to respond to the Seller again means that you have agreed to go forward with the purchase and cannot cancel the Contract due to inspection issues. . Repairs will be performed by the Seller in accordance with the controlling section of the Contract. Sellers may perform the work themselves. All work must be in “workman-like manner” per the Contract. Repairs should be finished three days prior to Close of Escrow.

The Home Inspection option is available to you per the Contract, and your agent(s)/broker strongly recommend that you have this done by a professional Home Inspector. However, if you choose NOT to have a home inspection performed, or decide to perform your own home inspection, your agent(s) will require that you sign an Inspection Waiver.

The Contract allows Buyers to perform a “final walkthrough” prior to closing. This should be done several days before closing. Your agent(s) encourages you to do this to assure the property is in “substantially the same” condition as seen, and that the repairs have been completed. You MAY arrange with your Home Inspector to re-inspect repairs. There may be a fee for this. Your agent(s) cannot perform the final walkthrough. You may elect to have a friend/family do this for you if you cannot be present. If you do not conduct a final walkthrough, your agent(s) will ask you to sign a waiver.