Authorizations to Prepare a Home Inspection Report and an NHD Report — Form 130 and 131
Investigative reports flesh out the marketing package
The primary objective of a seller’s agent on taking a listing is to solicit and locate prospective buyers who submit an offer to acquire the listed property, as sufficiently disclosed by the seller and their agent so not to mislead the buyer about its condition. When a prospective buyer is located, directly or indirectly via a buyer’s agent, the seller’s agent owes the buyer a general duty to voluntarily and promptly provide critical information on the listed property that might adversely affect its value. This property information is collectively referred to as material facts.
Upfront factual disclosures put the buyer on notice of conditions on or about the property known to the seller or the seller’s agent. Without this information, a prudent buyer is unable to set a price and make an offer. For the most efficient delivery of property information for timely presentation to prospective buyers, the seller’s agent at the listing stage gathers data on the property and organizes it into a marketing package.
The marketing package contains third-party investigative reports prepared by unbiased professionals or government agencies addressing essential aspects of the property’s condition that are of concern to prudent buyers. [See RPI Form 133]
Two of the recommended third-party reports to be included in the marketing package are:
- a Natural Hazard Disclosure Statement (NHD), provided by an NHD expert [See RPI Form 131]; and
- a home inspection report (HIR) to accompany mandated property disclosures. [See RPI Form 130]
These reports put a face on the property so it can be fully evaluated by prospective buyers and a sale more effectively negotiated. Negotiations with a prospective buyer triggering a full disclosure commence when the prospective buyer or their agent first seeks out additional information on the listed property beyond the minimal data contained in a promotional flier.