I want to buy a property In N.J. In the N.J. real estate contract (and I would assume in the most part of our country because this is what the whole inspection industry is about) there is a section where a buyer can put in a certain amount of days (usually 15) after the attorney review that we can have a home inspection. The home inspection report can be a way to get out of the contract just by stating that the costs are too high to fix the property and/or if the seller wants to fix the issues. We already know this part. The question is, can I be the buyer and the home inspector. I can find all the issues on the property, but I need to bring in my contractor to see how much it would cost to fix. My contractor to me is my 15 day due diligence period to get out of the contract. Can I legally do this?? Thanks Rick
If I was the seller, I would want the inspector to be a third party.
You can do pretty much anything, that you and the seller both agree to. If I were the seller, I probably would not agree to it either.
Would you could do is have another inspector that you trust do the inspection and report for you, and bird dog him at the inspection yourself.
You may actually be the one finding the defect, but he is reporting it.
The tag team approach.
Do not assume that the results of the inspection will get you out of the contract. It would be dependent on what the contract states. Here in the northeast, most inspections are performed prior to contract signing, so no contingency is applicable.
As to performing your own inspection, there is nothing to prohibit it. If the contract has contingencies, it will likely require a licensed inspector look at the property. If you try and influence the process, and balk at the purchase, the seller can claim that an independant inspection was not performed, and may go after your deposit.
You pay a realtor and attorney to represent you. Hopefully, in your walk-throughs prior to making an offer, you were “inspecting”…
Here in NY, when an unlicensed person is performing an inspection (like a family member) I advise the realtor to compel the buyer to sign an inspection waiver.
Guys, thank you for the insight. I plan on making many offers on short sales, bank reos and even private sales. Out of all the offers I would be lucky if I get two offers accepted because of my low offers. I have only one hard money lender lined up. So if two are accepted, I was looking for an out on one of them. I see that I would have to hire an independent home inspector other then myself to do so. The other out in a contract is not being able to come up with the finances and state that in writing to the seller. Rick
Write into the contract…“pending partners approval”.
Whichever contract you want out of, have your “partner” not approve it.
Your partner could be anyone. Maybe a good friend who is your adviser for a dollar. He just wouldn’t like the one.