Clarification needed

I was hoping for some clarification. I was always under the impression that we are hired by the buyer. I was looking at the online contract NACHI supplies and noticed this:

“The inspection and report are performed and prepared for the use of CLIENT, who gives INSPECTOR permission to discuss observations with real estate agents, owners, repairpersons, and other interested parties.”

Why is this in here?

I have clients all the time that do not want the inspection discussed in front of the agents. I also only send the report to the client unless they request it to be sent to someone else. I had an out-of-country buyer the other day that did not want any realtors to get a copy of my report. The realtor at the inspection was upset and said that I had to supply her with a copy under disclosure rules and I can be held liable for not disclosing things wrong with the property to her. I am hoping this is a bunch of BS, or have I been wrong for over 10 years of inspecting?

It depends on your state law typically.

It would be helpful if you added your location:

Read it again. Most PIA’s have a place for your “client” to sign which gives you permission to release a copy to specified parties.

Your “client” can be anyone. That is most often the buyer, but sometimes is the seller or even the agent.

As to the “disclosure” that is in regards to the home owner, and the agent herself. Anything they know, they must disclose to any potential buyer. So what she is telling you is BS. You are under no obligation to tell the home owner or the agent anything unless they are YOUR client (or unless they are in danger.) If your client walks, and another buyer comes along, you are also not obligated to tell them anything either. Your inspection is for your client only (unless you and your client agree to something different.)

I think the clause is there to protect the HI in case he gives a copy to someone other than the client. However, I always ask the clinet if they want their realtor to have a copy - they say yes 99% of the time. In any case, I abide by their wishes, regardless of the wording the agreement. Note if the realtor gets their hands on it, it will probably get forwarded to anyone they wish, but that liabiliy is theirs.

I’ve had that part reworked to make non-disclosure (except for safety at my discretion) the default. My client has to explicitly designate whom I discuss the inspection or share the report with. So if my client doesn’t make a specific , by name declaration in the agreement then they are the only one whom I speak with or give a report to.

I might add that the vast majority of my clients like it this way. They understand right off what I mean and since I make it easy for them to share a report with anyone they choose once they’ve read it it’s a rarity to have them allow disclosure.

Of course all of this is dependent on state law so the rules of your state are what applies.

I had a client that told me absolutley not to give the report to anyone but her…Thats exactly what I did and the agent was some what pissed at me. Oh Well.

What Mark said.

Thanks everyone for your comments. Larry, Im located in S. Florida.

I read that clause as giving permission to give report to client’s realtor for purposes of negotiation. Client has the right to deny that permission, but in 5 years of inspecting, that has only happened once.

In-Illinois you better not send to Realtor without permission.
The contact is with your client only. Period.

That clause is there to grant that permission.

I prefer the reverse. All are excluded unsless specificaly approved by the client.

I am fine with verbal permission.