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If you’re in the process of buying or selling a home, there’s a good chance you have implemented, seen or heard of an inspection contingency. This contingency is almost always offered at the time when a property goes under contract.
The Cincinnati Area Board of Realtors cites a specific time frame within which the buyer is allowed to show the property in question to professionals for the sake of inspecting it for defects. If during the inspection process anything is found to be unsatisfactory, defective or questionable, the buyer has a legal right to provide the seller written notice of this fact.
Furthermore, this added step in the home buying/selling process allows the buyer a chance to walk away from the transaction if they are not happy with something. This means they may change their mind if they are not satisfied with the property for any reason as a result of the inspections. The contingency in place allows them to be able to cancel the contract – regardless of the reason. In fact, the buyers do not even have to state a reason for changing their mind.
The Inspection Addendum is drafted on behalf of the buyer and presented to the seller, after which the seller may choose to do one of several things. They may opt to respond to any repairs the buyer may have requested to rectify specific problems. The sellers may choose to offer or accept the buyer’s request for financial concessions and therefore accommodate repairs needed as a result of the inspection. Or the seller may decide to review the terms and choose whether or not to accept them.
As you can see, the settlement period is virtually a second round of negotiations, centered on the findings of professionals hired to check the property in detail for defects or aspects that may be unacceptable to the buyer. Just as the buyer has the right to back out of the deal, so does the seller have the right not to agree to changes proposed by the buyer.
When going through a purchase or sale, it is important to keep in mind the inspection contingency, a very critical part of the contract.
For questions about this, or any other real estate related inquiries you may have – please do not hesitate to contact me today. I would be happy to assist you!
