In a residential real estate transaction in Arizona, the Buyer and Seller use the Buyer’s Inspection Notice and Seller’s Response (BINSR) to request and negotiate repairs to the property. The BINSR is an addendum to the Arizona Association of Realtors Residential Purchase Contract that allows, in an organized manner, the Buyer to request repairs and the Seller to respond.
The BINSR has 3 important steps:
STEP 1 – Buyer Request
During the Buyer’s inspection period, the Buyer completes all their desired inspections within the outlined time period on the contract. This gives the buyer an opportunity to look at the condition of the home and indicate on the first page of the BINSR that:
a) they are accepting the property without any repairs and proceeding forward with the purchase; or
b) they are disapproving the property and canceling the contract; or
c) they are giving the Seller the opportunity to correct some disapproved items (the Buyer’s requested repairs), which they then list on the front page of the BINSR.
The Buyer signs the document and submits it to the Seller and awaits the Seller’s response.
Alternatively, the Buyer can choose to waive inspections. In this case, the Buyer notifies the Seller of their election to waive inspections and proceed with the purchase by signing a different section of the BINSR.
On page 2 of the BINSR, the Buyer also has the opportunity to list Non-Working Warranted Items (items that must be in working order according to the Arizona Purchase Contract.) These are non-negotiable repairs that the seller must correct.
STEP 2 – Seller Response
In the event that repairs are requested, the Seller has 5 days to respond back to the Buyer with their decision to repair all, some or none of the requested repair items that were listed on page 1 of the BINSR. The Seller submits their response in writing on page 3 of the BINSR, and then signs and delivers the document back to the Buyer.
STEP 3 – Buyer Election
In the event that the Seller has not agreed to correct all of requested repairs, the Buyer now has the opportunity to accept the Seller’s response and move forward with the purchase of the home, or cancel the contract. The Buyer has 5 days from receipt of the Seller Response to make this election in writing and deliver it to the Seller.
If the Seller has agreed to do any repairs, the contract outlines that those repairs must be made by a licensed contractor with accompanying receipts.
The BINSR was not designed as a tool to renegotiate a different purchase price although some parties agree to a credit at close of escrow in lieu of the repairs being completed by the Seller. The rationale for the credit may be that the Buyer would like to have their own contractors do the work on their soon-to-be new home so they can monitor the workmanship to guarantee it meets their particular standards.
Another scenario in which a credit may be issued in lieu of the Seller making the repairs is in a quick close situation when there isn’t enough time for a Seller to get the repairs completed. If a credit is to be issued, all parties will agree on a pre-determined amount that is credited to the Buyer’s side of the HUD settlement statement completed by the escrow company.
If you are new to Scottsdale, contact us to learn more about the area and the home buying process in Arizona. Make AZGolfHomes your “go to” source for real estate and community information.
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
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