The Home Inspection
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Inspection Contingency
An inspection contingency (also called a “due diligence contingency”) gives the buyer the right to have the home inspected within a specified time period, such as 5-7 days. It protects the buyer, who can cancel the contract or negotiate repairs based on the findings of a professional home inspector. An inspector examines the property’s interior and exterior, including the condition of electrical, finish, plumbing, structural and ventilation elements. The inspector furnishes a report to the buyer detailing any issues discovered during the inspection. Depending on the exact terms of the inspection contingency, the buyer can:
- Approve the report and the deal moves forward
- Disapprove the report and back out of the deal (and have earnest money returned)
- Request time for further inspections if something needs a second look
- Request repairs or concession (if the seller agrees, the deal moves forward; if the seller refuses, the buyer can back out of the deal and have his or her earnest money returned)
A cost of repair contingency is sometimes included in addition to the inspection contingency. This specifies a maximum dollar amount for necessary repairs. If the inspection indicates that repairs will cost more than this dollar amount, the buyer can elect to terminate the contract. In many cases, the cost of repair contingency is based on a certain percentage of the sales price, such as 1-2%.
The Agents Responsibility in The Home Inspection Process
144 Coordinate buyer's professional home inspection with seller
145 Review home inspector's report
146 Enter completion into transaction management tracking software program
147 Explain seller's responsibilities with respect to loan limits and interpret any clauses in the contract
148 Ensure seller's compliance with Home Inspection Clause requirements
149 Recommend or assist seller with identifying and negotiating with trustworthy contractors to perform any required repairs
150 Negotiate payment and oversee completion of all required repairs on seller's behalf, if needed
Home Inspection
The one who benefits most from the service is the one who should and does pay.That means the buyer pays for the inspection. Many home inspectors can do the home inspection and insurance inspection at the same time.
You should expect the full report , in digital form, withing 24 hours with pictures of each item listed. It is the report, and it's structure that will prove the greatest benefit.
Watch the Tutorial Video
The Home Inspection - Viewing Time is 2:31 minutes.
