Caveat Emptor
By Jim Palmer Jr.

In the past, real estate buyers took more risk than in these modern times.  Improved business practices now demand full disclosure and complete access for investigation and in these consumer-minded times fraud of any type is simply not tolerated. 

Modern brokers have created improved business practices, and legislators have enacted Disclosure Statutes that protect buyers much more than was the previous norm.  The State mandated Disclosure Statement and the now generally used practice of completing home inspections, as a contingency of the sale, make it easier for buyers to purchase with eyes-wide-open.  The reason it’s up to the buyer to inspect is that Washington is a caveat emptor  (the Latin term for buyer beware) state.  This means buyers have the responsibility to hire inspectors, pay for inspections and investigate a property to their subjective satisfaction regardless of what disclosures or representations a seller has made.

Thirty years ago it was rare for a buyer to take advantage of a home inspection, but now educated brokers are careful to always include the specifically crafted Inspection Contingency which basically gives purchasers a free look, or what we call a get-out-of jail-free-card.  That means they can walk away during the time frame specified without losing their earnest money.  Buyers still have risk, but that is mostly limited to the cost of hiring a qualified home inspector to check out every nook and cranny, every system and appliance, and critical structural aspects of the property.

Some of the details of this addendum include the following; 1) the home will be inspected by a licensed inspector.  2) It specifies a time frame for the inspection to be completed or else it is waived 3) a Buyer may require additional time for further evaluation by specialists.  4) Buyers may request modifications or repairs, and then seller can agree, reject or propose alternatives. 5) As mentioned above, a buyer can walk away from the deal for any reason if they cannot come to an agreement acceptable to them.

Attitudes among Realtors® concerning this topic have changed dramatically through the years, especially among listing brokers. It became obvious to most listing brokers that a thorough inspection by the buyer was also a huge risk reduction for sellers.  When a proper home inspection is allowed, the seller inadvertently sheds some liability and buyers become more acutely aware of what they are purchasing, thus limiting litigation in the future.