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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">So what if any remedy does the seller has if unauthorized disclosure of the inspection report is made especially if the deal closes?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Bryce H. Dille | Attorney at Law<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Dille Law, PLLC<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Kary Krismer<br>
<b>Sent:</b> Monday, October 7, 2019 2:29 PM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> Re: [WSBARP] NWMLS Form 35<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p>The forms have numerous situations where an event triggers the cancellation of the contract, and then explicitly states what happens to the EM. That is not the case with this new Form 35 language.<o:p></o:p></p>
<p>But in any case, the forfeiture of EM liquidated damages provisions only apply per Form 21: "In the event Buyer fails, without excuse, to complete the purchase of the property . . ." Where the buyer still wishes to proceed to closing, the liquidated damages
clause is not applicable.<o:p></o:p></p>
<p>As to your concern about the change, nothing prevents the listing agent from asking for the page(s) of the report that describe an item requested for repair/adjusted price. Sometimes that is necessary, but usually that's due to a poorly worded inspection
request. For example this year we had a buyer asked for "Seller to repair missing siding piece" without describing where the missing siding was located. It turned out it was a location you could only see from the roof. We had to request more information
from the buyer's agent.<o:p></o:p></p>
<pre>Kary L. Krismer<o:p></o:p></pre>
<pre>John L. Scott, Inc. <o:p></o:p></pre>
<pre>206 723-2148<o:p></o:p></pre>
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<p class="MsoNormal">On 10/7/2019 1:55 PM, Craig Blackmon wrote:<o:p></o:p></p>
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<p class="MsoNormal">Colleagues, I've considered the issue and have reached the opposite conclusion. By providing a portion of the report, buyer breached. No further performance is due, and seller is entitled to the liquidated damages (forfeiture of earnest
money). <o:p></o:p></p>
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<p class="MsoNormal">This is exactly the purpose of liquidated damages. The seller's injury -- learning of a defect that must now be disclosed in the future, with the resulting loss in value -- cannot be ascertained. The way the contract is written, I think
seller is entitled to the earnest money. Presumably the parties can negotiate a better resolution than that -- but seller keeps the earnest money otherwise.<o:p></o:p></p>
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<p class="MsoNormal">Note that I am really disappointed with this recent change to the form. I feel it impairs a buyer's ability to communicate the defect that must be cured in satisfaction of the inspection contingency. The authors of the form felt that the
change was needed to prevent buyers from using inspection reports (and the resulting duty to disclose to a subsequent buyer) as an unfair negotiating tactic. <o:p></o:p></p>
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<p class="MsoNormal">I'd like to see an exception inserted that allows a buyer to provide those specific and limited portions of a report that identify repairs the seller must address in order to satisfy the inspection contingency. In the meantime, I see risk
of a dispute between buyer and seller either just before or right after closing, as to whether the seller fixed the defects as "agreed." The parties can foreseeably have a misunderstanding, given the inability to share the relevant portions of the report.<o:p></o:p></p>
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<p class="MsoNormal">We'll see how it unfolds.<o:p></o:p></p>
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<p class="MsoNormal">Craig<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Craig Blackmon, Attorney at Law<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><a href="http://www.seattlepropertylawyer.com/" target="_blank">Seattle Real Estate Lawyer</a></span><span style="font-size:9.5pt"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><a href="http://www.seattlepropertylawyer.com/blog?category=Buy+without+an+Agent" target="_blank">How to Buy Without an Agent</a> | <a href="http://www.seattlepropertylawyer.com/blog?category=Sell+FSBO" target="_blank">How
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