No Cure Period Notice is Necessary When Buyer Does Not Provide a Residential Buyer’s Inspection and Seller’s Response (BINSR)
The buyer and seller entered into an Arizona REALTORS® Residential Resale Purchase Contract. The 10-day inspection period passed, and the buyer did not cancel, present a BINSR or otherwise disapprove of any items.
The seller claims the buyer is not acting in good faith and insists that the listing agent prepare a 3-day cure notice.
Is a cure period notice necessary when a buyer does not provide a BINSR?
A buyer is not contractually obligated to provide a BINSR pursuant to the contract. Rather, by failing to provide a BINSR or cancel, the buyer has waived the inspection contingency and is obligated to close escrow without any repairs. In fact, lines 287-289 of the contract provide:
BUYER’S FAILURE TO GIVE NOTICE OF DISAPPROVAL OF ITEMS OR CANCELLATION OF THE CONTRACT WITHIN THE SPECIFIED TIME PERIOD SHALL CONCLUSIVELY BE DEEMED BUYER’S ELECTION TO PROCEED WITH THE TRANSACTION WITHOUT CORRECTION OF ANY DISAPPROVED ITEMS.
As a result, there is no need for the seller to issue a cure period notice because the buyer is obligated to close escrow regardless.