Monday, July 15, 2019

Sellers Should Not Be Allowed To Bar Certain Home Inspectors From Their Property

I have written in the past that "Buyers Should Always Hire Their Own Inspectors."  I still agree with every word of this post and urge new readers to review it first in order to put what I am about to say in context.

I have recently become aware that a local real estate agent is barring a certain home inspector from inspecting her clients' properties due to a bad experience with a previous listing.  This home inspector identified defects in his written home inspection report, and the buyers used these defects to back out of their purchase and get their earnest money back.  In other words, the home inspector did exactly what home inspectors are supposed to do - he protected his client from purchasing a property with defects.  The real estate agent lost her commission on that sale, so she is now barring this home inspector from her listings.

Buyers and those who represent them (buyers' agents and attorneys) should know that sellers and their agents have no right to bar certain home inspectors from their properties.  Through accepting an offer contingent upon a home inspection, a seller agrees to allow the buyers' inspectors access to their property.  The only caveat is that the buyers' inspector must be a Wisconsin registered or Wisconsin licensed home inspector.  This is all clearly spelled out in lines 183-185 and lines 195-196 of the WB-11 Residential Offer To Purchase.

Fortunately, this outrageous situation appears to be quite rare.  While many real estate agents will refer unsuspecting buyers to home inspectors who know which side their bread is buttered on and thus will not identify any issues that could jeopardize the sale, this is the first time in fourteen years of practice that I have ever heard of a real estate agent telling buyers that they cannot use a diligent home inspector.  Even real estate agents who sell their own properties and thus have an enormous incentive to preserve the sale at all costs do not try to limit a buyer's choice of home inspector.  Such conduct arguably violates Wis Admin. Code § REEB 24.03(2)(b), which requires real estate licensees to act to protect the public against fraud, misrepresentation, and unethical practices.     

Buyers should not allow sellers to bully them into giving up their choice of home inspector.  Buyers need to work with professionals who are both willing and able to advocate on their behalf.  Please contact me at rudolphkuss@stevensandkuss.com if you need representation during one of the most important purchases of your lifetime.  

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