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Buyer’s Inspection Notice Seller Response: The BINSR Process for Arizona Home Buyers

Brian Reese
August 21, 2023

Home buyers have a lot of paperwork to fill out before they can get the keys to their new home: two of the most important are the realtors’ residential purchase contract and the BINSR. 

Standing for Buyer’s Inspection Notice Seller Response, this document represents the negotiations between the buyer and seller regarding what repairs must be done before the closing documents can be signed.

The Arizona Association of Realtors has a sample form of the BINSR form that you can download, which should be examined thoroughly before diving into the home-buying process.

Important Notes about the BINSR

The BINSR is a form that records the negotiation between buyer and seller regarding inspection issues and requested repairs. It has no bearing on the purchase contract; it fulfills the notice process that’s part of the purchase contract sections 6i and 6j.

This is also only sent to the escrow company if you cancel the transaction based on the home inspection. In that case, you’ll send the second page to the escrow company to receive your earnest money deposit back.

Seller Property Disclosure Statement (SPDS): The First Step in the Process

Before you start the home inspection and the BINSR, the seller will submit an SPDS, also known as a “spuds.” SPDS is a written notice of everything the seller knows about the property, including mold problems, broken appliances, and HOA fees.

SPDS is comprehensive; you should read it carefully to see if anything would make you choose not to go through with the sale.

This buyer advisory must be supplied within three days of contract acceptance so that you can begin the inspection period and move on to the BINSR.

Read the SPDS carefully, as there may be things here that lead you to cancel the transaction and receive a full refund of your earnest money. You should also provide this to your home inspector so they can monitor the issues mentioned in the SPDS.

Home Inspection: The Basis of the BINSR

After you’ve read the SPDS, it’s time to contact a home inspector, who will take a comprehensive look at the home to determine if any issues must be rectified before it’s habitable. This can include mold, electrical or plumbing problems, structural issues, roofing and drywall, and flooring.

The buyer will waive inspections in rare circumstances, but this can be costly. You can only negotiate repairs for issues you know about, so you should always insist upon performing a home inspection, even if you’re purchasing from a family member or friend.

Should you choose to waive inspections, you will still need to fill out the BINSR form, but you’ll sign the “Buyer’s Waiver of Inspections” section on the second page of the form, leaving the first page blank.

You’ll then submit your buyer’s waiver of inspections to the seller, and the sale will proceed.

Inspections Buyers Should Consider

These are the essential inspections that every buyer should ask for during this process:

  • Termite
  • Roofing
  • Radon
  • Mold
  • Structural
  • Pool
  • Septic tank
  • Electrical and plumbing

BINSR process

Step 1: Buyer Requests Repairs

In the ‘buyer’s requested repairs’ section of the BINSR, you have three options:

“Premises Accepted:” You agree to purchase the house just as it is and won’t request repairs. With that, the BINSR is complete when the seller signs off.

“Premises Rejected:” The inspection period has revealed severe issues which have made you not want the home. The buyer notifies the seller that the transaction is canceled and you get your money back.

Buyer elects to provide Seller an opportunity to correct …” In this part, the buyer lists everything they want to be repaired, which will then be sent to the seller.

Sometimes the buyer’s agent will state that a licensed contractor must do all the work. Arizona real estate transaction, you cannot specify that a licensed contractor must do all repairs; instead, Arizona law only specifies that licensed contractors must perform those costing more than $1,000.

This means that if you’re having the seller fix a broken pane of glass in a window, for example, it doesn’t have to be done by a professional, just completed in a “workmanlike manner.”

Now you’ll wait for the seller’s answer. They have five days to get back to you – and no, holidays don’t give them extra time.

“Premises Accepted:” You agree to purchase the house just as it is and won’t request repairs. With that, the BINSR is complete when the seller signs off.

Step 2: Seller’s Response

Now the seller can respond and either approve or disapprove the requested repairs.

A seller’s response might go in three ways: the seller approves all of the buyer’s requests, disapproves everything, or lists the items disapproved. These are listed as checkboxes on the second page of the BINSR, and we’ll discuss each here.

“Seller agrees to correct ….” means they’ve agreed to everything, and the inspection period is over. Now the seller and buyer sign the form, confirming that it’s decided to, and the closing can proceed.

Seller is unwilling …” The seller refuses every repair, and the buyer must decide whether to accept or cancel the sale.

Seller’s response to Buyer’s notice is as follows:“ The seller is approving some of the repairs and rejecting others. Each disapproved item will be listed as the buyer requested with a yes or no.

Often, if the seller has some things they’re worried will nullify the sale, the seller’s agent will discuss these problems with the buyer before doing anything with the BINSR.

Step 2: Buyer’s Response

Now it goes back to the buyer, who has five days to accept, cancel, or negotiate repairs. Everything is done if they accept or cancel: the transaction is nullified. However, if the seller’s response included a list of items disapproved or approved, it’s time to negotiate.

Negotiation: An Alternative to Accepting or Canceling

Most of the time, both parties want this to go through and aren’t going to cancel over something that could be rectified. In this instance, their choice is to negotiate a price reduction. This is the only option other than accepting or canceling because there are no do-overs on the BINSR.

Negotiations About Purchase Price

It’s important to note that you’re asking for a price reduction regarding an issue you found during the inspection period; more than discussing this regarding the BINSR is needed.

You need to return to the purchase contract and include an addendum about the updated purchase price; you might also ask for a repair credit to get things taken care of if the seller doesn’t have time to deal with the disapproved items.

If everyone agrees, you can move on to the close of escrow and the entire purchase of your new real estate.

Real estate transactions are complicated, with many moving parts. If you have questions about BINSR or anything related to home buying, contact us for extra guidance from an expert home finance team.

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Buy
Home Purchase
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Read about all the benefits
Process overview
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Free refinance for 3 years
Refinance with no closing costs
No closing costs
Zero costs options, what it means
Realtor credits
Get .5% towards your closing costs
18 Day closing
2X more likely to get your offer accepted
Price match guarantee
We beat competitors’ rates by .125% or more
Rate defense
Never miss out on rates dropping
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