AGENT INSPECTION & DISCLOSURE
INSPECTION AND DISCLOSURE
1. RESIDENTIAL PROPERTIES: 1-4 dwellings. If a Property is mixed use, then the agent’s inspection duties apply to the “Residential” portion only.
2. INSPECTION OBLIGATION: An agent has a duty to conduct a reasonably competent “visual” inspection of each “Residential” property and disclose any “defects” that affect:
a. Market value or
b. Desirability.
3. SCOPE OF INSPECTION: The agent’s “visual” inspection should include inspection of the following areas:
a. INSIDE: inspect all rooms, guest houses and garages.
b. OUTSIDE: inspect yard, fences, landscaping, missing tiles, stucco and driveways.
c. NEIGHBORHOOD: inspect for nuisances, aircraft/train noise, smells.
USE ALL OF YOUR SENSES:
a. Eyes: Report what you see.
b. Ears: Report what you hear.
c. Nose: Report what you smell.
4. RED FLAGS: Defects that the agent is obligated to disclose are often referred to as Red Flags. Disclose anything that would bother you if you were the buyer:
– leaks (vs. stains) – interior/exterior stains – teenage band on block
– missing roof tiles – interior/exterior stains – noisy dogs next door
– low water pressure – interior/exterior strange smells – aircraft/train noise
– leaning walls – overgrown landscaping – any abnormalities.
5. AVID: Agent Visual Inspection Disclosure – Required for all “Residential” transactions.
a. Complete the entire form as to all rooms. If a room has nothing wrong, then state “NOTHING NOTED.
b. Only report your observations: only what you see, hear or smell. – Mold: report “black substance.” Algae: report “green substance.”
c. Do not use adjectives or make conclusions
– Do not say “small stain” or “insignificant crack” or “minimal leak.”
d. Disclose INACCESSIBLE areas of the property.
– boxes in 3rd bedroom prevent inspection
– furniture against south wall in dining room prevents inspection
– large throw rug over wood floor in living room prevent inspection
– boxes in garage prevent inspection
– large painting on south wall in dining room prevents inspection.
e. Make no representations about permits, zoning or code compliance.
6. AMENDED DISCLOSURES: If seller discovers and/or discloses a defect after removal
of buyer’s contingencies, then buyer has FIVE (5) DAYS to cancel based upon that late disclosure.
7. VIDEO/PICTURES: Some agents take video or pictures of their inspection. If you do
this, then.make sure that the defects appearing in the video or pictures appear on your AVID.
