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A non-reliance letter states the report is for information purposes only and the information contained in the report cant be the basis for any future legal claim against the diligence provider by the new recipient.
A reliance letter gives a third party the right to rely upon the accuracy of the report that was initially prepared for someone else, which results in increased liability for the inspector.
Reliance is legal concept defining the dependence by one person on another persons or entitys statements or actions, particularly where the person acts upon such dependence.
A Reliance Letter is letter that is used to convey the right for particular parties to rely on the contents of a report. Typically, the lender, CDC, and SBA are the relying parties. If there are other parties, they would also need to be included.
A reliance letter is an important legal document when it comes to Commercial Property Inspections and client due diligence reports. It allows a third party to rely upon the accuracy of the report even though it was initially prepared for someone else.
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Reliance Letter from a Commercial Property Inspector It allows a third party to rely upon the accuracy of the report even though it was initially prepared for someone else. This requires the inspector to accept additional liability if the work completed was done incorrectly or not up to standard.
A third party can ask an inspector for a reliance letter. The inspector addresses the reliance letter to whoever he is granting the right to rely on the report. Parties who ask for reliance are usually those related to the CRE transaction, such as a lender, buyer, seller, or an insurer.

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