… referred to as the “binzer”

The Buyers Inspection Notice and Sellers Response-BINSR-0217 is probably the most complicated two pages of text involved in an Arizona residential real estate transaction. You should click the link and print the document, or have the PDF open in another window, so you have it to refer to as you read the following discussion.Buyers-Inspection-BINSR header-image


The BINSR is used by the buyer to give written notice to the seller of the buyer’s decisions regarding the physical condition of the property.

Inspection – Basis for Decisions

A professional inspection is not mandatory but of great benefit and peace of mind for the buyer and well worth the common expense. Specialized inspection is likely also a good idea for some property aspects – like septic systems. The inspection report is also a very objective basis for and repair or replace demands the buyer may make.

Agreement “Acceptance”

With the day of “Acceptance”, the date of the last signature on the last-signed document in the Purchase Agreement documents, being day-zero, the buyer has ten days within which to deliver the BINSR to the seller, or possibly some other number of days as written into Section 6a of the Purchase-Contract-0217.

No “Overs”

First, it is important to note on page 1 of the BINSR in the section … Buyer Acknowledges that:  the following item  … (d) Buyer is not entitled to change or modify Buyer’s election after this notice is delivered to Seller  … which means that each step in this entire process involves “no-overs” … for both buyer and seller. This point is also made in section 6i of the Purchase Contract, which includes “…  all Inspection Period items disapproved shall be provided in a single notice.

Buyer Notice – Ok, Cancel, Fix-it

The decision of the buyer regarding the condition of the property is contained in the BINSR section “Buyer elects as follows:“. If the box for “Premises Accepted” is checked, all physical inspection provisions of the contract are done.

If the box “Premises Rejected” is checked, the transaction is done … cancelled … caput. In the open section below, the buyer lists the “Items Disapproved:” … which need NOT be truly significant, except to the buyer … BUT … there must be a list of items disapproved, else the buyer could lose his/her earnest money deposit.

When the third box is checked, “Buyer elects to provide Seller an opportunity to correct …” which occurs by far the most, this is where the complications begin. In the open section of the BINSR just below this option, the buyer lists the items to be repaired, replaced, or otherwise changed from the current condition. Buyer signs for these demands at the bottom of page 1 of the of the BINSR.

Seller Deadline

As provided by Section 6j(2)a of the Purchase Contract, with the date of delivery being day-zero, the seller has five days to respond to the BINSR from the buyer. As also provided in this section, no response by the seller is effectively a refusal to correct any of the disapproved items … same as checking the “Seller is Unwilling …”  box on page 2 of the BINSR, discussed below.

Seller Response – OK to All, No to All, Yes and No

The SELLER’S RESPONSE to that third-box check and list of “disapproved” items by the buyer is on page 2 of the BINSR.

If the seller checks the top box, “Seller agrees to correct …”, all inspection issues are over, except only for the Buyer-Pre-Closing-Walkthrough-0217 where the buyer confirms that the corrections were all satisfactorily completed.

If the second box is checked “Seller is unwilling …”, the buyer has a decision to make … to either cancel the transaction or to accept the property as-is.

If the third box is checked, “Seller’s response to Buyer’s notice is as follows:“, there will be a list and/or explanation below. For example, the seller may say here that the item is working and no fix is required, i.e., the inspector made a mistake. Or that the seller is not going to fix certain ones of the listed items, or not fix it in a way stated by the buyer on page 1. For example, the seller could say he/she was going to fix something personally rather than hire a “licensed contractor”. The response possibilities are limitless.

Buyer Response to Seller Response – OK or Cancel

Where the seller is indicating that he/she is not going to comply with the buyer’s demands to some degree, the buyer in much the same position as if the “Seller is unwilling …” box were checked. The buyer must decide for each “fix-it” item the seller took exception to whether the seller’s response is acceptable, or not.

Finally, with either the second or third option response from the seller, we get to the section BUYER’S ELECTION at the bottom of page 2 of the BINSR. With the day of delivery of the seller’s response to the buyer being day-zero, the Buyer has five days to decide which of the two options to elect to take: Accept or Cancel. Yes … cancel the transaction! Until the BINSR process is successfully completed, the transaction is very much “out on a limb”.

TNT have developed a third alternative that works very well for the buyer … and also for a seller who would really rather not lose the deal over the correction issues; but in 99.9% of cases, the buyer will Accept or Cancel.

Buyer may Waiver Inspections – Rare

Very rarely, a buyer may choose to not perform any inspections or submit any sort of “fix-it” list by signing under “BUYER’S WAIVER OF INSPECTIONS” at the top of page 2 of the BINSR, leaving all items on page 1 blank, and delivering that BINSR to the seller. This entirely circumvents the inspection process.

SPDS Connection to BINSR & Inspection

If the BINSR is the most complicated document, the SPDS (referred to as the “spuds”) has, by far, the most long-term liability for the seller … more so even than the Purchase Contract.  A buyer can sue the seller years after the purchase if there was intentional misrepresentation of a material issue on the SPDS

SPDS – Seller Property Disclosure Statement  This is the form the seller uses to give written disclosure to the buyer of what the seller knows about all aspects of the property. The Purchase Contract requires that this document be delivered to the buyer within three (3) days of “Acceptance”, defined above.

Very important:  The buyer should provide a copy of the SPDS to the physical inspector prior to the inspection to identify any items that should be given special attention.

Click here for a full discussion of the SPDS

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