REINCheck

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VO [00:00:06] You're listening to REINCheck with Andrea Rice Contracts and Industry Specialist at REIN, where you get the latest member news and information delivered straight from the source, REIN MLS.

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Andrea Rice [00:00:20] Hello and welcome to REINCheck, I am your host, Andrea Rice, and today we are checking in with REIN Sales Managers Advisory Committee members, Becky Claggett and Edwin Rucker to discuss the No Physical Inspection Addendum and how this relates to a recent change in the standard purchase agreement. Becky and Edwin, thank you for being here.

Becky Claggett [00:00:41] Thank you for having us. Appreciate it.

Edwin Rucker [00:00:44] And I'm excited to be here. Happy New Year.

Andrea Rice [00:00:47] Thank you and, you know, Becky and Edwin were the very first guests we had here on REINCheck back at the end of 2020 where we sat down and discuss the REIN COVID-19 forms. So, while we have left 2020 in the past, unfortunately, we have not left COVID-19 in the past. So, if you have not had a chance to check out that episode, I invite you to go to REIN.com on the agent login and check out episode one of REINCheck. But today we're going to talk about the No Physical Inspection Addendum and actually, this is not a new form, but a name change. So, Becky, can you tell us a little bit about that?

Becky Claggett [00:01:26] Sure, I'll be happy to. As Andrea said, this is not a new form. This one has simply been renamed. It was previously the Site Unseen Addendum. And now it's the No Physical Inspection Addendum. No physical inspection is simply better wording than the previous name and better identified as the addendum. As this addendum not only identifies the purchaser is not physically viewed the property versus, say, a virtual viewing, but that the buyer acknowledges that any images, videos, or other representations used for marketing purposes may not depict an accurate appear an accurate appearance or condition of the property. And the buyer understands this.

Andrea Rice [00:02:09] Right. So, it's really just the I think everyone was used to the Sight Unseen Addendum. So really just the same thing with a new name to more accurately reflect what is going on. Right.

Becky Claggett [00:02:23] Absolutely.

Andrea Rice [00:02:27] OK. And this name change took place in January of this year. At the same time, there was an addition to paragraph 12 of the standard purchase agreement making a reference to this particular form. Edwin, can you explain the relationship between the physical inspection addendum and the standard purchase agreement?

Edwin Rucker [00:02:48] Definitely. First, understand in paragraph 12, paragraph 12 is the property condition. And basically, it is saying that the prospective buyer is accepting the condition of the property when they write the contract with the exception of any agreed-upon repairs. So, what we've done is actually added some additional verbiage to indicate that the buyer has or has not physically inspected the property. And they have a couple of checkboxes there. And of course, if they check that they have inspect the property, then we're good. If they check that they have not, then they need to do the physical no inspection, No Physical Inspection Addendum.

Andrea Rice [00:03:33] Right, so if they have not set foot in the property then they would include this form with the contract, correct?

Edwin Rucker [00:03:42] That's correct, yes. Right. And the problem I think we've had in the past is that it was difficult to tell whether or not a person had actually physically inspected the property where they may have seen online and saw videos of virtual tools, etc. and they thought that that was sufficient to say that they had inspected.

Andrea Rice [00:04:04] OK, right. And in this current market where we're dealing with COVID and we have a lot of military in this area, do you find that there are a significant number of buyers that do not physically enter the property before making an offer?

Becky Claggett [00:04:21] I think yes. I think more and more every month we see a couple more, and so I believe that this one will better prepare buyers and sellers when they're dealing with this.

Andrea Rice [00:04:35] Edwin, do you see the same thing?

Edwin Rucker [00:04:37] Yeah, pretty much. It depends on the buyer and seller and what the buyer is located. They might be out of the area. They may be local. I think part of the problem, in the beginning, was that we had actually people that were local that were not physically visiting the property because of concerns. So now that we've had a little bit of experience that we're starting to see a balance and there's still a lot of people out there that are not physically visiting the property but, yeah, writing offers.

Andrea Rice [00:05:12] Right. Yeah, and I think that clears up because I know I've had a few calls of people asking where's the Site Unseen Addendum and maybe not realizing that there was a name change. So, I think that clears that part of it up. And just reiterating that if they do check that they did not physically enter the property, that there's No Physical Inspection Addendum needs to be executed with the contract. Do you have any parting thoughts before we sign off?

Becky Claggett [00:05:42] I think I'd just like to take a moment and say that I hope this helps everybody and I want to thank anybody that takes time to listen to this podcast and learn to better serve your buyers and sellers because that's what we're trying to do here.

Edwin Rucker [00:05:54] And if I have anything to say, I think the changes that we've made by first changing the name to the form and also adding the checkboxes in the purchase agreement. We've truly simplified the process. And I find it very hard to find someone could not understand it.

Andrea Rice [00:06:12] Well, thank you, Becky and Edwin. I really appreciate your time coming on here and clearing that up for us. And for those of you that are listening, if you have any suggestions for REIN Sales Managers Advisory Committee, you can submit those to SMAC@reininc.com and we will make sure that your suggestion gets on an upcoming meeting agenda. Again, thank you, and have a great rest of your day.

Becky Claggett [00:06:37] Thank you. Bye, bye.

Edwin Rucker [00:06:38] Thank you. Bye, bye.

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VO [00:06:42] You've been listening to REINCheck with Andrea Rice, stay in the know from those who know. Delivered straight from the source, REIN MLS.

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