Due Diligence and The Inspection Period
Once the offer is signed it becomes a contract and the inspection period begins. Now the burden is on the buyer to begin the due diligence regarding the property to determine if it is the right property for them. The inspection period is typically a 10 calendar day window provided to the buyer to research important facts and perform a physical inspection.
What To Do During The Inspection Period
The contract requires the seller provide two disclosures to the buyer. These are the Seller Property Disclosure Statement, commonly referred to as the SPDS. It is a form that assists the seller in providing material facts about the property which is required by Arizona law. The second one is the insurance claims history that covers insurance claims history for the last 5 years. These disclosures should be reviewed by the buyer to gain a more accurate insight into the property. Want a customized home search where listing are delivered automatically as they come on the market? Click on Customized Home Search
Another important document that is mentioned in the purchase contract is the Buyer Advisory. It is a useful document that highlights areas and items that a buyer should be aware of during the inspection period. It covers a wide range of items such as expansive soil, water and well concerns, crime statistics, sex offender database, and common documents used in a real estate transaction. My favorite section is the “Talk to the Neighbors” advice. Neighbors can be a excellent resource to understand the area, schools, parks and the house that the buyers are considering purchasing.
Schedule A Home Inspection
When you walked through the house, you may think you were able to get a good idea of the condition of the home, even if the showing took 45 minutes. To get a more thorough understanding, it is important to hire a licensed home inspector to do a more in-depth inspection so you can understand the condition of the home, the good and the bad! An inspector will evaluate different systems; such as the heating and cooling, plumbing, structure, foundation, roofing, pool, etc. It is money well spent. The results of the inspection will assist you in filling out the Buyer’s Inspection Notice which will most likely include requesting the seller address items found in the inspection report.
Complete The Buyer's Inspection Notice
The main purpose of the inspection period is to assist the buyer in completing the Buyer’s Inspection Notice where the buyer can: 1) Accept the premises as-is, ore 2.) Cancel the contract based on items found during the inspection period, or 3.) Request the seller remedy certain items found during the inspection period which most likely will come from the results of the home inspection.
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