Home Inspections: Navigating Equal Duty of Care, a Crucial Imperative for Real Estate

Navigating Equal Duty of Care: A Crucial Imperative for Real Estate

Are you tired of navigating the murky waters of property transactions, unsure of potential risks lurking beneath the surface? As a buyer, seller, or agent, the fear of undisclosed issues can weigh heavily on your mind. But fear not! Our comprehensive property inspection services offer a clear solution, providing peace of mind and facilitating smoother, faster transactions for all parties involved.

Real Estate Agents are often faced with a concern about certain aspects of a property that they are about to accept a mandate on. The concerns might be about a structural component of the building, the property condition, or its compliance status.

Agents have an equal duty of care and responsibility to the seller whose mandate they are about to accept and the buyer. Do they accept the mandate unconditionally with the limited Mandatory Disclosure Form as the sole record of the property condition or do they insist that the Seller engage a specialist to conduct a Pre-Sale Property Inspection? Do they identify the mandate as too risky and walk away? Do they accept the mandate in the knowledge that they are duty bound to inform a prospective Buyer of their concerns and encourage the Buyer to conduct their own independent inspection? 

The action that the agent takes could result in the loss of the mandate or might even result in a later claim against the Agent and the agency for failure to provide equal duty of care or even failure to disclose what they might have, should have or ought to have known. This could ultimately result in a cancellation of a sale and possible litigation by the plaintiff against the parties in the transaction chain.

The agent and the Agency have several options available to them at this point.

1. They can advise their client who at this point is the seller to fully understand the implications of nondisclosure and further advise a pre-sale property condition report by an independent and impartial property inspector. This inspection and report can then form part of the seller’s disclosure.
2. Should the seller refuse this option, the agent could then offer to pay for this inspection and report or share the costs thereof.
3. If the seller still refuses this option, this should be an indication that there are concerns surrounding the condition and compliance of the property and agents should bear this in mind when marketing the property and not just inform the buyer of their right to conduct an independent property condition inspection.
4. The moment that an agent commences the marketing of the property, the buyer also becomes the agent’s client and equal duty of care kicks in.

Given the scenario that is outlined here, the solution to this is always Inspect, report and disclose.
Agents and agencies benefit from this in several ways:

1. Reputations and credibility are built by this approach and through these actions, the news travels in the market. You will build a reputation as a solution driven agent and agency.
2. This will certainly result in more mandates and therefore more sales.
3. Sales transactions become less problematic, and the transaction velocity will increase.
4. Above all you would have reduced the risk of litigation or claim against you or your agency as well as limited the risk to both the buyer and the seller.
5. You can then move forward to the next deal and focus fully on that.

We strive to provide our clients with a complete and comprehensive inspection and report on various aspects of the property. This is what a client had to say.

​I wanted to take a moment to write a review and express my sincere appreciation for the outstanding work you have done as a property inspector. Your dedication, professionalism, and expertise have had a significant impact on our projects, and I am truly grateful for your contributions.

From the very beginning, it was evident that you possess an exceptional attention to detail and a deep understanding of property inspection. Your thorough assessment of properties, identification of potential issues, and provision of insightful recommendations have been truly impressive. Your inspection reports have been comprehensive, promptly addressing concerns and offering valuable guidance to our clients.

I must emphasize the incredible value you have provided us. Thanks to your thorough inspection, we were able to avoid purchasing a property with potential legal liabilities. This has saved us from the nightmare we could have faced had we proceeded without your expertise. The price we paid for your services is incomparable to the financial and emotional stress we would have endured otherwise.

Based on my experience, I wholeheartedly recommend Dave for his exceptional work as a property inspector. I would strongly advise anyone to utilize your services before signing any documents, including an Offer to Purchase.

Once again, thank you for your outstanding contributions, Dave. Your dedication to excellence and your commitment to providing top-notch service have made a significant difference for us

Regards, 
Mbele Lebohang"

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