The home building inspection and Inspectors

The Inspection Addendum

This is used to when the buyer's offer is contingent upon getting and reviewing a building inspection.  It allows the buyer to terminate the contract for any reason, or to ask the seller to make concessions and / or repairs.  With rare exceptions, it is always advisable to get an inspection - even in new construction - you would be amazed at what sub-contractors overlook.

 

In the event of a multiple offer situation, where more than one party is trying to get the same house, the tactic of not making your offer contingent on an inspection might be used - in these cases an inspection is generally made before the offer is written.  If you find something bad and decide not to make an offer, you are out the $300+ with nothing to show for it.  Still, of you love the house and want to write a bomb-proof offer this is one tactic to employ.

 

This is one of the most critical phases of the purchase, and is where most offers fall apart.  Please be advised that the description below is simplified in the extreme, but gives you the gist of the process.

 

Here are some the fields to fill in and some of the options available on the inspection contingency:

	Usual names dates etc.
	Neighborhood review - number of days to look around the neighborhood to make sure it is where you want to live - if you don't like it you can disapprove the inspection and terminate the contract
	You can specify how many days you have to make the inspection
	You can specify how many days you have to get additional inspections if you need a specialist for something
	Option 1-A: Buyer's Satisfaction.  You can disapprove the inspection for any reason (or no reason at all), or you can choose and direct steps to be taken to correct problems - however, the seller can reject any of your requests and "counter back" to you.  This option gives the buyer more control, and is more likely to be rejected in a multiple offer situation (seller in control) if another party uses the next option:
	Option 1-B: Gives the seller the chance to make repairs that you identify.  This option is exercised under time-lines mutually agreed upon in your disapproval of inspection.  Seller will respond with a list of remedies to the problems you identify.  You may change or amend that response again and again until you either agree how the problems will be addressed, or terminate the contract.  If you let a timeline slip by without proper notice, you will be under contract to buy the house or lose your earnest money if you don't.
	You can elect to waive the inspection, or buy the house "as-is".  Not a smart thing to do if you have any question at all about the house or land.
	There is an option for the earnest money to be held by the broker, and not deposited to escrow until the inspection is approved.  This makes it easy to move on to another deal without having to get your money back from escrow, which can take some time.

(Neither Mapleleafnews.com or Coldwell Banker warrants or guarantees any work performed by those listed - they are provided for your convenience only.  They have however been satisfactorily employed in the past and recommended by other agents)

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