IS WAIVING INSPECTIONS WORTH IT IN THE LONG RUN?
IS WAIVING INSPECTIONS WORTH IT IN THE LONG RUN?
By: Jose L. Parra, Esq.
March 1, 2022
With the recent turn of events surrounding the explosion of the real estate market, it appears that many buyers are eager to purchase real estate at whatever cost necessary. Some buyers have gone to the extreme of waiving the ability to conduct an inspection of the real property to incentivize a seller to sell to that buyer.
Is this approach wise? Given that an inspection can reveal issues or defects relevant to a property, a buyer may waive their right to sue for any defects by failing to conduct the necessary investigation of the real property. The fundamental legal question is whether the failure to conduct an inspection limits a buyer from suing a seller for undisclosed defects. California Civil Code Section 2079.5 states: “Nothing in this article relieves a buyer or prospective buyer of the duty to exercise reasonable care to protect himself or herself, including those facts which are known to or within the diligent attention and observation of the buyer or prospective buyer.”
Section 2079.5 serves to put a buyer on notice of the importance of their duty: “Nothing … relieves a buyer or prospective buyer of the duty to exercise reasonable care to protect himself or herself.” The California Association of Realtors’ form titled “California Residential Purchase Agreement” also contains a number of advisories concerning a buyer’s duty to investigate the real property for sale. Therefore, if a buyer elects to proceed with a sale without conducting an inspection, a buyer will most likely confront many challenges in showing that they were not aware of any defects before purchase. Of course, a buyer can rely on the disclosures made by a seller concerning defects; however, a buyer would have the difficult task of showing that these defects were not “known to or within the diligent attention and observation of the buyer or prospective buyer.”
Simply stated, it does not appear that waiving inspections is worth it in the long run. If defects arise after the buyer acquires the property without conducting the necessary inspections, a buyer may find themselves without any legal recourse.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.
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IS WAIVING INSPECTIONS WORTH IT IN THE LONG RUN?
By: Jose L. Parra, Esq.
March 1, 2022
With the recent turn of events surrounding the explosion of the real estate market, it appears that many buyers are eager to purchase real estate at whatever cost necessary. Some buyers have gone to the extreme of waiving the ability to conduct an inspection of the real property to incentivize a seller to sell to that buyer.
Is this approach wise? Given that an inspection can reveal issues or defects relevant to a property, a buyer may waive their right to sue for any defects by failing to conduct the necessary investigation of the real property. The fundamental legal question is whether the failure to conduct an inspection limits a buyer from suing a seller for undisclosed defects. California Civil Code Section 2079.5 states: “Nothing in this article relieves a buyer or prospective buyer of the duty to exercise reasonable care to protect himself or herself, including those facts which are known to or within the diligent attention and observation of the buyer or prospective buyer.”
Section 2079.5 serves to put a buyer on notice of the importance of their duty: “Nothing … relieves a buyer or prospective buyer of the duty to exercise reasonable care to protect himself or herself.” The California Association of Realtors’ form titled “California Residential Purchase Agreement” also contains a number of advisories concerning a buyer’s duty to investigate the real property for sale. Therefore, if a buyer elects to proceed with a sale without conducting an inspection, a buyer will most likely confront many challenges in showing that they were not aware of any defects before purchase. Of course, a buyer can rely on the disclosures made by a seller concerning defects; however, a buyer would have the difficult task of showing that these defects were not “known to or within the diligent attention and observation of the buyer or prospective buyer.”
Simply stated, it does not appear that waiving inspections is worth it in the long run. If defects arise after the buyer acquires the property without conducting the necessary inspections, a buyer may find themselves without any legal recourse.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.
Recent and Popular Articles From Our Blog:
2020 Blogs:
- April 28 – A New Reality – Temporary or Permanent – Virtual Showings and Disclosures
- May 22 – Servant Leadership
- June 8 – Paycheck Protection Program Flexibility Act is Enacted
- June 10 – Impact to Credit Score After Filing Chapter 7 Bankruptcy
- June 26 – SBA Rolls Out Updated PPP Loan Forgiveness Application
- July 2 – Understanding the Home Equity Sales Contract Act 2020
- July 14 – Governor Rolls Back Re-Opening
- August 4 – August 2020 COVID-19 Update
- August 18 – Status Of Selected California State Operations re: COVID-19
- September 1 – COVID Update on Foreclosures and Evictions
- September 3 – State Passes AB 3088
- September 15 – Update on PPP Forgiveness and Impacts
- November 10 – Changes to the Fair Housing and Discrimination Advisory CAR Form
- November 24 – In a Season of Difficulty – We Choose Gratitude
- December 15 – Cal/OSHA Issues New COVID Prevention Rule
2021 Blogs:
- January 5 – Introduction to New Laws 2021
- January 26- Rain and the Prevalence of Failure to Disclose Claims
- February 2 – California Enacts COVID Tenant Relief Act (SB 91)
- March 9 – Understanding the Trust Exception to Real Estate Disclosures
- April 20 – Cash for Keys and SB 91
- May 4 – Help! Tenant Won’t Cooperate with Sale of Home
- May 11 – California Passes AB 80
- June 15 – Pinhole Leaks in Copper Pipes in Folsom