Buyer Waiving Inspection Rights - Can Loan Be Approved?

**spdblondie** · 08-02-2009, 03:46 PM

We negotiated a price with the buyer. The contract originally was left black (in Missouri the blank means 10 days) regarding time to complete an inspection. When we renegotiated our agent put in 5 days to have the inspections completed and everyone signed this document. The buyer has approved funds and needs to move quickly before losing his locked in loan rate. After day three our agent contacts the buyers agent again, asking them if they have established the time for the inspections...... and a day later the buyers agent returns the call stating his buyer is going to waive his rights on the inspection and they will sign the waiver to decline the inspections. Keep in the back of the mind the buyers agent does not return phone calls and seems to busy to be bothered with this transaction once the paperwork was signed.

As a seller, no inspection sounds to good to be true...... BUT can a loan really go through when an inspection has not been conducted? He must close on our house August 13th.... today is August 2nd. We want to feel secure in this deal while we begin to quickly pack up all our belongings. The home we are buying, the owners there are very easy to work with and are packing quickly too to vacate so we can move in. (Thank goodness) this whole quick process is affecting two households.....

Guess my question is - can this really occur? Will a mortgage company dispurse money on a new home loan without the inspections being done?

Thank you in advance for your input.

Sandy in KC

**Greg** · 08-03-2009, 06:22 AM

Typically, a lender never sees or asks about the home inspection, unless they are using FHA and then there are another whole set of rules.

Have your agent verify their loan status before you get to far into the moving process.

**spdblondie** · 08-03-2009, 07:46 AM

Our agent has spoken at length with the buyers financing lender. They have said they are approved and ready to go....

Obviously after feeling so nervous about this, my husband asked our lender this morning and he stated that currently FHA nor VA require inspections. That just doesn't seem right, but he stated the rules have changed right now (guess perhaps all the foreclosures? I do not know).

So, we are assuming things are all good. If anything changes I will post back here.

Thanks and again, we are open to any and all input.

Sandy in KC

**jamesww** · 08-05-2009, 12:14 AM

Yes, a loan can be approved without a home inspection being completed. However, if you are an agent I would suggest that you never write such an offer. Your client truly needs to do a home inspection and you need to encourage them to do so. If they choose not to despite your pleas then get them to sign a disclosure stating they have chosen to not complete a home inspections even though you insisted.

I personally will not write an offer where the buyer is not doing a home inspection.

**spdblondie** · 08-05-2009, 10:19 AM

I am a seller - not an agent. We always get inspections when we purchase, as we completely understand and appreciate the need for an inspection. We have already conducted inspections on the home we are purchasing due to the sell of my home.

Much to our surprise, my buyer did signed a waiver form - and we have learned that VA and FHA loans are being approved when no inspections have been done.

The contract paperwork reads as follows:

Inspection Notice

INSPECTION WAIVER - BUYER AGREES TO ACCEPT PROPERTY 'AS IS'. BUYER HAS NOT CONDUCTED inspection(s) within the Inspection Period provided in the Contract and waives any right to canel or renegotiate pursuant to the inspection provisions of the Contract and agrees to accept the property "as is". SELLER and Licensees assisting in the sale are released from any further obligation of liability related to the condition of the Property.

I personally would not have done business this way, however our buyer indicated he has a locked interest loan rate that expires on August 13th, so he just wants to hurry and close on the deal.

We anticipate (and hope) that in 8 days, we will be closed and headed into our new home with the sale of this one behind us.

I cannot stress to everyone on this site, the importance of ensuring you have an outstanding real estate agent. Our agent is truly amazing, and I could not ask for anyone better to work for us, in every aspect of this sale. Our buyers agent was lack luster and absent for most of this transaction, ie, not answering phone calls or e-mails. I cannot believe an agent can get away with this type of behavior. I guess it takes all kinds.

When you go to buy or sell a home, ensure you know your agent very well and your personalities and perceptions "fit" with them. It is a relationship that will certainly be close since you are spending most of your money on one of the biggest investments in your life.

Happy house shopping!

Sandy in KC

**tucsonhomes** · 08-05-2009, 04:13 PM

Wow, someone who used an agent and followed their advise! Terrific!

**welovetampa** · 08-11-2009, 04:29 PM

Absolutely, the property can be sold without an inspection being done. I wouldn't recommend a buyer do this, even if the property is being sold as-is because they at least need to make sure they know what they're getting into, but it is completely their choice - lucky you!

Loree@welovetampa.com

**spdblondie** · 08-17-2009, 07:42 PM

Three days before closing on my house, the buyers financing fell through.... UGH!

Lucky for us, we put the house back up on the market and sold it again, in ONE DAY! It is priced to sell and in great condition.

This time the buyer stated she would accept it in "as is" condition, but is performing inspections.

So - I am back where I was a few weeks ago, but curious to know what "as is" truly means - can she back out of the deal or is this just for her info if they were to find anything wrong with the house?

Thanks!