Buyer’s Duty in a Transaction

Buyer’s Duty in a Transaction to investigate all aspects of the Property.

  1. BRBC [Buyer Representation and Broker Compensation Agreement]  (or PSRA)
    1. Prior to “working with” or “showing a property to” a Buyer, this agreement must be done.
    2. Buyer is responsible to pay the Buyer’s Broker compensation amount agreed to in the BRBC unless Buyer requests in the Offer that Seller pay all or part of Buyer’s obligation to the Buyer’s Broker [RPA 3.G.(3) and SPBB].
  2. Disclosures – Buyer is to review all statutory or other Seller disclosures including:
    1. TDS [Transfer Disclosure Statement]
    2. SPQ [Seller Property Questionnaire] or ESD [Exempt Seller Disclosure]
    3. FLD [Lead-Based Paint Disclosure] for homes built before 1978.
    4. Other Point-of-Sale disclosures as applicable. (i.e. BHIA
    5. Local County Disclosures as applicable.
      1. Most Bay Area counties have a County Disclosures & Disclaimers Advisory specific to that county.
    6. Local City Disclosures as applicable.
      1. Some cities have specialized addenda [PAA] regarding Sewer Lateral compliance.
      2. Some cities have 2nd-Hand Smoke Ordinances.
      3. Other City Disclosures [Livermore, San Pablo, San Rafael, etc.]
    7. Natural Hazard & Environmental Disclosures
      1. NHD Report needs to include tax data & environmental disclosures.
      2. NHDS [Natural Hazard Disclosure Statement] is in the NHD Report.
      3. NHD companies generally carry up to $3MM E & O Insurance, so, by using a 3rd-Party NHD company, Seller is shifting liability to them.
    8. Consumer Booklets [Buyer and Seller to sign Receipt form] FAQ Site
      1. Homeowner’s Guide to Earthquake safety.
      2. Protect Your Family From Lead in Your Home.
      3. Residential Environmental Hazards [includes Mold, Radon & Gas and Hazardous Transmission Pipeline disclosures].
      4. Home Energy Rating System (HERS) Program Booklet.
  3. Preliminary Title Report – Buyer shall have the right to review the Preliminary Title Report and all attachments.
  4. HOA Documents & Minutes – Buyer shall have the right to review all applicable HOA [Homeowner Association] documents including the HOA Demand and the most recent 12 months of Minutes.  Use BHAA [Buyer’s Homeowners Association Advisory].
  5. Inspections – Buyer shall have the right to conduct inspections, investigations, tests, surveys and other studies (“Buyer Investigations” as described in BIA) using only the services of licensed and insured professional inspectors.
    1. General physical inspection [Home Inspection].
    2. Buyer shall carry, or Buyer shall require anyone acting on Buyer’s behalf to carry, policies of liability, workers’ compensation and other applicable insurance, defending and protecting Seller from liability for any injuries to persons or property occurring during any Buyer Investigations or work done on the Property at Buyer’s direction prior to Close Of Escrow.
    3. Pest Control inspection specifically for wood destroying pests and organisms.
      1. Without Seller’s prior written consent, Buyer shall neither make nor cause to be made: invasive or destructive Buyer Investigations, except for minimally invasive testing required to prepare a Pest Control Report.
    4. Inspect for lead-based paint and other lead-based paint hazards.
    5. Buyer may choose to do additional inspections on the Property: Chimney, Roof, Pool, Soils, Foundation, etc.
  6. Satisfy Buyer as to any matter specified in the BIA [Buyer’s Inspection Advisory].
  7. Buyer is urged NOT to remove any contingencies with Offer. If so, then use NCOA [Non-Contingent Offer Advisory].
  8. Agent is NEVER to do any of these tasks for the Buyer. Buyer is responsible.

    1. Review the registered sex offender database.
    2. Confirm the insurability of Buyer and the Property including the availability and cost of flood and fire insurance. Use BHIA [Buyer’s Homeowners Insurance Advisory].
    3. Review public records regarding Building Permits, Rent Control policies, etc.
    4. Review and seek approval of leases that may need to be assumed by Buyer.
    5. Review and seek approval of warranties that may be assumed by Buyer.
in Buyers, Compliance, Disclosures | Inspections