Originally Posted By: kweiss This post was automatically imported from our archived forum.
An acquaintance of mine asked me to do an inspection for his son on a HUD home he is buying with an FHA loan. I am not currently set up to do inspections for HUD or FHA. He wants me to look at it purely for his peace of mind and to help him identify any huge problems.
When he contacted his Realtor about accessing the home the Realtor said that if I did not have the HUD standard key, I should not be inspecting the home.
Is there some sort of rule like that? Again I am not going to be inspecting it for FHA or HUD, he is aware of the FHA appraisal/inspection that will occur. I am only inspecting it for him. Is this allowed? If I do inspect it for him and find something major that he does not want to deal with or cannot financially deal with, can he get out of the contract based on my inspection?
Any clarification on the rules in this area would be appreciated. I know the family well enough that I would be willing to go walk through the home with him and just advise him as a friend on the general condition and needed repairs. But that would not be a real inspection and would not allow him to get out of any kind of contract that I am aware of.
Originally Posted By: mboyett This post was automatically imported from our archived forum.
Kevin,
I’ve never heard of any rule against HI’s inspecting foreclosed/HUD homes. I’ve probably inspected at least 6-8 of them in the last 6 months or so. Call the Realtor back and explain to him/her that they are wrong, you can legally inspect HUD homes for a prospective buyer. Just get the Realtor to get you access (they must accompany you during the inspection) and inspect it like you would any other home using the TREC Stds of Practice and form and cover all the areas or disclaim them in the report if you do leave anything out. If the Realtor disagrees have them give you the specific ruling against it, who regulates it, where it can be found, etc.