After you’ve had your offer accepted on an Arizona home and signed the purchase contract, one of the most important steps in your journey to homeownership begins: the inspection period. During this time, you’ll investigate the property’s condition, and your findings will determine whether you proceed with the purchase, request repairs, or walk away.
The document that facilitates this crucial process is the Residential Buyer’s Inspection Notice and Seller’s Response, commonly referred to as the “BINSR” (pronounced “binzer”). This three-page form, created by the Arizona Association of REALTORS®, serves as the official communication channel between you and the seller regarding the property’s condition.
In this comprehensive guide, we’ll examine each component of the BINSR, explain how to use it effectively, and provide practical examples to help you navigate this critical stage of your home purchase.
The BINSR serves several vital purposes in your real estate transaction:
Think of the BINSR as your safety net during the inspection period. It allows you to document concerns discovered during inspections and gives you options for addressing them while protecting your earnest money deposit if major issues arise.
The BINSR is organized into three distinct sections that correspond to the typical inspection process:
Let’s examine each section in detail.
The first page begins with identifying information about the transaction:
Below this information is an important statement confirming that you’ve completed all desired inspection period items. This includes:
This comprehensive list reminds you of the breadth of investigations you should consider during your inspection period. It’s not just about hiring a home inspector—it’s about thoroughly researching all aspects of the property that matter to you.
After completing your inspections, you have three choices, indicated by checkbox options:
Most buyers select the third option, which allows negotiation with the seller about addressing discovered issues.
If you select option 2 or 3, you’ll need to list the specific items you’re disapproving. This section is critically important—be clear, specific, and thorough. Vague descriptions can lead to confusion and disputes.
Example of Poor Description: “Kitchen needs work.”
Example of Good Description: “Kitchen sink faucet leaks at the base when operating. Master bathroom toilet runs continuously and needs new internal components. HVAC system is not cooling properly—home inspector recommends professional HVAC evaluation and service.”
Some buyers attach a copy of their professional inspection report, but it’s generally better to list specific items you want addressed rather than overwhelming the seller with a lengthy report.
At the bottom of page 1, there’s an acknowledgment that the buyer understands:
This section protects the real estate professionals involved and reminds you that you’re responsible for selecting qualified inspectors and making your own judgments about the property’s condition.
The second page contains an optional section titled “Buyer’s Waiver of Inspections.” This is only signed if you decide to waive your right to conduct inspections, which is rarely recommended. By signing this waiver, you would release the brokers from liability for issues that could have been discovered during inspections.
Most buyers should NOT sign this waiver, as inspections are crucial for making an informed decision about what is likely the largest purchase of your life.
The top of page 3 is where the seller responds to your requests. This section is only completed if you’ve selected the third option on page 1 (providing the seller an opportunity to correct issues).
The seller has two options:
The seller can also provide a detailed response explaining what they will and won’t fix. Often, this becomes a negotiation, with the seller agreeing to some repairs but not others.
Example: “Seller agrees to repair leaking kitchen faucet and replace toilet components in master bathroom. Seller will provide a $500 credit toward HVAC service but will not replace the system. All repairs will be completed by licensed contractors with receipts provided to buyer.”
This section must be completed within five days after delivery of your notice (or another timeframe if specified in the contract).
The final section of the BINSR is your “election”—your decision based on the seller’s response. This is only completed if the seller has not agreed to correct all items.
You have two options:
This is a critical decision point. If you’re not satisfied with the seller’s response, you can walk away and typically receive your earnest money back. Alternatively, you can accept the property with the understanding that certain issues won’t be addressed by the seller.
The BINSR operates within strict timeframes established by your purchase contract:
Missing these deadlines can have serious consequences, including inadvertently accepting the property “as-is” or losing your earnest money.
Your lender will be interested in certain inspection findings, particularly those related to the property’s habitability and value. Some issues identified during inspections may need to be resolved before your loan can close, regardless of what you and the seller negotiate. These typically include:
If your inspection reveals such concerns, consult with your lender about their requirements before finalizing your BINSR negotiations.
The BINSR is more than just paperwork—it’s a powerful tool that protects your interests during one of the most critical phases of your home purchase. When used properly, it helps ensure that:
Remember that while the standardized BINSR form is the same for everyone, how you use it can vary based on your situation. First-time homebuyers might approach it differently than investors, and negotiations will vary based on market conditions and property age.
By understanding the purpose and proper use of the BINSR, you can navigate the inspection period with confidence, make informed decisions about your purchase, and take a significant step toward successful homeownership in Arizona.
Work closely with your real estate agent to complete this form properly, meet all deadlines, and develop a strategy that best protects your interests while keeping your transaction on track toward a successful closing.