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<p>The statewide forms are amended by a group of attorneys I do not
know the identity of, except Justin Haag of the NWMLS and I
believe maybe Annie Fitzsimmons of Washington Realtors. I suggest
forms changes with some frequency and they agree to something
slightly less than half. Sometimes they are even quick about it,
like when the market started to turn around and I discovered that
the Short Sale form was inconsistent with the Backup Offer form.
Until the market turned that was not really something to worry
about much.</p>
<p>As to this inspection report issue, due to problems some buyers'
agents were creating they originally made it a default to disclose
the inspection results, but did not specify a remedy. Then a year
or two later they changed it to providing that disclosure resulted
in a waiver of inspection. Note: Quoting the inspection report
can result in waiver because it is "all or part." Unfortunately
some agents believe that an inspector's description of a problem
is how you request a repair to be made. It is not. The inspector
states what is wrong. The inspection response should state what
the buyer wants the seller to do.<br>
</p>
<pre class="moz-signature" cols="72">Kary L. Krismer
206 723-2148</pre>
<div class="moz-cite-prefix">On 9/28/2022 9:08 AM, Roger Hawkes
wrote:<br>
</div>
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<p class="MsoNormal">I don’t do a ton of real estate forms work;
but I am curious about the process by which the forms and
related requirements get changed; does anyone have first hand
info about this change for example?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div style="border:none;border-top:solid #E1E1E1
1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b>
<a class="moz-txt-link-abbreviated" href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>
<a class="moz-txt-link-rfc2396E" href="mailto:wsbarp-bounces@lists.wsbarppt.com"><wsbarp-bounces@lists.wsbarppt.com></a>
<b>On Behalf Of </b>Kary Krismer<br>
<b>Sent:</b> Wednesday, September 28, 2022 7:06 AM<br>
<b>To:</b> WSBA Real Property Listserv
<a class="moz-txt-link-rfc2396E" href="mailto:wsbarp@lists.wsbarppt.com"><wsbarp@lists.wsbarppt.com></a>; Erik Marks
<a class="moz-txt-link-rfc2396E" href="mailto:erik@egmrealestate.com"><erik@egmrealestate.com></a><br>
<b>Subject:</b> Re: [WSBARP] NWMLS Form 35 now prohibits
disclosure of inspection report???<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333">Yes,
it's been that way for some time, with the most recent
version providing a waiver of the inspection contingency.
<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333">It's
a good change because: (1) The seller did not pick the
inspector, and the inspector may be an idiot; (2) The
buyer will use it to blackmail the seller; and (3) It
creates disclosure headaches for the seller if the deal
falls through.
<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333">I
once spent considerable time verifying the proper flashing
with the contractor and architech, where the inspector
didn't know his stuff. Later I discovered an obvious
siding defect the inspector missed. Both would have
required work that would have cost $20-30k, but the
former was unnecessary.
<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333"><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333">Kary
L. Krismer
<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333">John
L. Scott, Inc.
<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span
style="font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333">206
723-2148
<o:p></o:p></span></p>
</div>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
<div>
<p class="MsoNormal">On 09/27/2022 5:29 PM Erik Marks <<a
href="mailto:erik@egmrealestate.com"
moz-do-not-send="true" class="moz-txt-link-freetext">erik@egmrealestate.com</a>>
wrote:
<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">I
am in the process of renewing my broker license and ran
across something that strikes me as very odd. I would be
interested in hearing from people on the list who might
work in the residential forms space and understand the
context. What I learned is that NWMLS Form 35 (Inspection
Contingency) now provides that the Buyer agrees NOT to
provide a copy of the Inspection Report to the Seller, and
that if the Buyer does so, then the inspection contingency
is deemed waived. <o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">My
first question is why is this in the form? The only
answer I can come up with is that the purpose of the
clause is to protect the Seller from gaining knowledge of
what is in the Inspection Report so that the Seller does
need to disclose that knowledge to a future buyer if the
pending sale falls through. Is that correct?<o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">And
if so, then holy cow am I confused by the decision to add
that provision. There are entire sections of the
license-renewal-course dedicated to saying that the
Listing Broker must avail themselves of reasonably
available information about the property, and cannot
intentionally keep their head in the sand. For example,
one quote from the materials is” "Strategic Ignorance is
unethical and illegal. Licensees must always conduct a
reasonably competent and diligent visual inspection of
property offered for sale and disclose the facts that such
an investigation reveals.” Reference is made in the
materials to Easton v Strasburger, 152 CalApp 3d 90 (1984)
as the seminal case underlying the principle that
intentional ignorance by the broker is a breach of ethical
duty. <o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">If
intentional ignorance by a broker is a breach of ethical
duty, wouldn’t the inclusion of a clause in the PSA that
prohibits a buyer from sending a 3<sup>rd</sup> party
inspection report to the Listing Agent, when the Listing
Agent knows the inspection report is likely to contain
material information about the condition of the property?
And, although the broker did not draft the form, the
broker did provide the form and the broker signed the
form. <o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">I
don’t get it…. Thank you to anyone who has special
insight on this issue to share.<o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Erik<o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:10.5pt;color:black">--
</span><o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><em><b><span
style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#4D573A">Erik
G Marks</span></b></em><span
style="font-size:10.5pt;color:#4D573A"> </span><o:p></o:p></p>
<div>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><em><b><span
style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#4D573A">Attorney
at Law</span></b></em>
<span
style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black"><br>
PO Box 16247</span><o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">Seattle,
WA 98116</span><o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;margin-bottom:12.0pt"><span
style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black"> <br>
(206) 612-8653<br>
</span><u><span
style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue"><a
href="mailto:erik@egmrealestate.com"
moz-do-not-send="true"><span style="color:#0563C1">erik@egmrealestate.com</span></a></span></u><o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;margin-bottom:12.0pt"><span
style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">Physical
Office:<br>
4220 SW Spokane St<br>
Seattle, WA 98116</span><o:p></o:p></p>
</div>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
</div>
<p class="MsoNormal">***Disclaimer: Please note that RPPT
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<pre class="moz-quote-pre" wrap="">***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
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