– What is the Buyers Inspection Notice and Sellers Response Form (BINSR)? –
If you are purchasing or selling a Scottsdale home, part of the process will include a form called the Buyers Inspection Notice and Sellers Response form. Many times you will see it abbreviated as BINSR, or hear it most commonly pronounced as the “bin-sur.”
The Due Diligence Period
For the purpose of this illustration, let’s use the purchase of a single family home as an example. In this transaction, there will be a buyer and a seller.
Once the terms of the contract have been finalized by both parties, the contract is now in effect and the due diligence (or inspection) period begins. In our standard Arizona contracts, the default time for the due diligence period is 10 calendar days. (However, this time frame is negotiable and can even be waived altogether if desired.)
The due diligence period is when the buyer has the opportunity to investigate and inspect items related to the home and community as well as anything else related to the home purchase that the buyer deems important or relevant. Some very common inspections are a home inspection, a pool inspection, termite inspection and so on.
How Does the BINSR Process Work?
The BINSR comes in once the buyer has completed all of their due diligence. Via this document, the buyer has three options:
- Option 1 – The buyer accepts the home as it is and is not asking for any repairs or corrections. The contract moves forward.
- Option 2 – The buyer chooses to cancel the contract by listing the item(s) disapproved. The contract is terminated.
- Option 3 – The buyer gives the seller an opportunity to correct the items that the buyer disapproves of. These items will be listed on the form. The seller now has to determine which, if any, of the items they will correct.
We commonly see buyers go with the third option. (Note: The buyer also has the option to waive any/all inspections as well and proceed with the contract.)
If the buyer has elected to go with option 3 above, the seller has five calendar days to review the requests and respond to the buyer.
At this point, the seller has three options.
- Option 1 – Correct all of the buyer’s disapproved items. In this case, the contract moves forward and no further repair requests can be made.
- Option 2 – Correct none of the disapproved items.
- Option 3 – Correct some of the disapproved items and list which items will be corrected.
If option 2 or 3 is chosen, the ball is back in the buyer’s court. At this point, the buyer can accept the response and move forward with the contract. Or, they can elect to cancel the contract within 5 calendar days.
This is a simplified overview on how the BINSR works in a Scottsdale real estate transaction, but we hope it answered any questions you may have had.
If you would like to take a closer look at the BINSR, here is a link to 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.