– What is the Buyers Inspection Notice and Sellers Response Form (BINSR)? –
As with any home sale, there is paperwork that accompanies it. If you are buying or selling a home in or around Scottsdale, a document that will part of the paperwork is called the Residential Buyers Inspection Notice and Sellers Response form. Since this is such a long name, most people will shorten the name to make it the BINSR and call it the “bin-zer” when they are talking about it.
The BINSR and the Due Diligence Period
The BINSR comes into play at the end of the due diligence period.
At this point, the buyer and seller have entered into a contract and the buyer is now responsible for performing due diligence to determine whether they want to proceed with the purchase of the home.
The due diligence period is also referred to as the inspection period, and in an Arizona contract, the default time period for this is 10 calendar days. (Note: The number of days is a negotiable item in the contract and some buyers even elect to waive the inspection period alltogether.)
During this time, the buyer will conduct any inspections that they deem important. The most common inspections are a home inspection, a termite inspection and a pool inspection (if applicable). Two other ones that are also quite common are roof inspections and HVAC (A/C) inspections. Buyers also have the opportunity during this time to investigate other items such as schools, enviromental concerns, zoning and so forth.
The BINSR Process - How Does it Work?
The buyer has three options at this point:
- Option 1 – The buyer will take the home "as is" and does not ask for any repairs or corrections. The contract moves forward.
- Option 2 – The buyer opts to terminate the contract by listing which item(s) they disapprove of. The contract is terminated.
- Option 3 – The buyer details any warranted and/or non-warranted items that they would like to see repaired, corrected or replaced by the seller.
The most frequent path is Option 3. If this option is selected, the seller then has five calendar days from the receipt of the BINSR to review the items and respond back to the buyer.
At this point, the seller has three options.
- Option 1 – Elect to correct all of the disapproved items. In this case, the contract moves forward and no further repair requests can be made.
- Option 2 – Elect not to correct any of the disapproved items.
- Option 3 – Correct some of the disapproved items and list which items will be corrected.
If the seller chooses the first option, the transcation will continue to move forward. However, if the seller goes with option 2 or 3 , the buyer then has to decide to a) accept the response and move forward with the contract or b) cancel the contract within 5 calendar days.
We hope you enjoyed this quick overview of the BINSR and how it is used in Scottsdale home sales transactions.
If you would like to review the Arizona BINSR, click here for a sample copy.
Disclaimer: This post is not intended as legal advice. It is simply an introductory overview of the form and how it is used. Please seek professional counsel for any transaction-related questions you may have.