BIC TIP #1273: They Gave Me the Report, Now What?
They gave me the report. So, now what? In this BIC TIP, Stephen Long answers a question he hears constantly: a buyer terminates, the listing agent is holding their home inspection report, and the previous buyer does not want it shared. The bottom line is that the listing agent still has a duty to disclose material facts in writing before the next buyer makes an offer.
Everything in That Report Is Material
When a buyer terminates and the listing agent has received the home inspection report, the information in that report does not go away. If it identifies issues with the property, those issues are material facts the listing agent now knows about.
Sharing the report with future buyers is often the simplest way to meet that disclosure obligation, and in many cases that is exactly what listing agents should do.
When the Previous Buyer Says “That Is Ours”
Occasionally, the terminated buyer or their agent objects. “Hey, that was our home inspection. We paid for it. We do not want you sharing it.” That is a choice they can make about their document.
But their objection to sharing the document does not erase your knowledge of the facts inside it. You cannot unknow what you read.
Transpose the Facts Into Writing
If the previous buyer is adamant that you cannot use the report, the listing agent needs to take everything in that report that is material and put it in writing in a separate document.
That written summary of material facts is then provided to prospective buyers prior to them making an offer. This approach respects the previous buyer’s request about their report while still meeting your obligation to disclose material facts in writing before contract.
It is also a smart time to talk with your seller. They may want to address some of those items, which could make the disclosure conversation much easier.
The Practical Takeaway
Once you know about material issues from an inspection report, you are obligated to disclose them. If you can share the report, share it. If you cannot, write up the material findings and get that document into the hands of buyers before they go under contract.
When in doubt about what counts as material, check with your broker-in-charge.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.
