Buy the Beach agents are not permitted to perform home inspections and, just as importantly, walkthrough inspections for Buyers. Sooner or later you will be asked to break this rule, usually by being asked to perform a walkthrough inspection for an out-of-town buyer. It is important that you understand why you cannot simply oblige your customer and what alternate arrangements you can suggest to resolve the issue.
You are not permitted to perform this function because:
- It is a clear conflict-of-interest. Both you as an individual and Buy the Beach Realty Group are receiving contingent compensation if (and usually only if) the transaction settles. You therefore have a direct financial interest in the outcome of the transaction. Although I have every confidence in that any of our agents would never, ever fail to disclose a defect that became evident during a walkthrough, the conflict would make you and your employer (the Company) extremely vulnerable if some latent defect became evident to the Buyer once he or she finally occupied the property.
- You are not qualified to inspect property. Your real estate license does not make you a property inspector. You have no qualifications for this duty and even if you personally think that you do, my company did not engage you for this type of work and we do not carry the insurance or occupational licenses needed to perform it.
So when you get asked to “just do the walkthrough” you are not “performing a favor” or “just helping out” your Buyer, you are looking for trouble and the possible forfeit of your commission. I am always amused when lawyers acting as Buyers’ closing agents ask us to “just do the walkthrough.” I always ask them if they will give my agent an unconditional, written waiver of any liability in connection with this request. I have never yet seen one. The only correct reply to your buyer or his/her attorney, mortgage lender or whoever else asks you to perform inspections, including walkthrough is:
“I’m sorry, I’m not allowed to do that. Our company does not permit me to perform this work because I am neither licensed nor qualified to perform home inspections and because there is a conflict-of-interest when inspections are performed by someone being paid contingent on your sale closing. This is not meant to be unhelpful, it is for your protection that we should have a qualified and impartial person perform any inspections including walkthroughs.”
Most inspection companies offer to perform walkthroughs and reinspections at a reduced fee for customers who used them to do the initial property inspection. This is the generally the best avenue to suggest. Another is a local friend, relative or co-worker.