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Inspection contingencies in real estate contracts are quite common, because they allow a buyer to inspect the property AFTER the purchase offer has been submitted but BEFORE the contract becomes binding.
Who Pays For Inspections
Buyers can choose to inspect properties themselves, but most elect to hire a qualified home or property inspector who has the expertise to thoroughly evaluate a property’s condition (including structural, electrical, plumbing, and HVAC components). Buyers typically pay for the inspections.
Inspection Objections – Buyers
After an inspection is completed, if issues have cropped up, buyers will usually submit an inspection objection that lists the issues with the property. This inspection objection creates new contingencies (and deadlines) in the real estate contract.
In the inspection objection, buyers can inform the seller that:
•they’re walking away from the property and won’t complete the sale
•they would like some or all of the issues fixed
•they would like to have the price of the property lowered
Inspection Objections – Sellers
Once sellers have received inspection objections from buyers, they have several options:
•they can refuse all of the requests
•they can fix some or all of the issues that the buyer requested
•they can lower the price to the price that the buyer requested or to a different price
Inspection Objection Contingency Deadlines
It’s important to note that buyers need to submit inspection objections before the inspection objection deadline that was included in the contract.
Inspection Objections And Earnest Money
If the buyer and seller can’t agree to terms with the inspection objections, in most cases, the buyer has the right to back out of the contract and still keep the earnest money.
We’re Here For You – Experienced Real Estate Attorneys
If you have a dispute over an inspection contingency clause or any other aspect of a real estate contract, we can review your real estate contract and let you know your options.
See related topics:
Earnest Money – Real Estate Sales Contract
Financing Contingency – Real Estate Sales Contract
Appraisal Contingency – Real Estate Contract
Title Contingency – Real Estate Contract
Property Sale Contingency – Real Estate Contract
At Timely Contract, we have local real estate attorneys who have experience throughout Idaho, including: Boise, Post Falls, Coeur d’Alene, Lewiston, Moscow, and Sandpoint.
We also have local real estate attorneys who have experience throughout Montana, including: Missoula, Billings, Bozeman, and Kalispell.