Note: This article references business practices in Middle Tennessee. Customs in your region may be different.
The most common reason that contracts neglect to close is a problem(s) with the inspection. In an earlier post, I mention two other reasons, but the inspection ranks as numero uno.
What Is An Inspection?
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An inspection is a visual analysis of the condition of the Property and its systems.
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Including termite inspection and inspections of the “heating systems, cooling systems, electrical systems, plumbing systems, structural components, foundations, roof coverings, exterior and interior components, and other site aspects that affect the Property, and environmental issues.”
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An inspection excludes “matters of purely cosmetic nature (e.g. decorative, color or finish items.)”
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An inspection is a Buyer’s right.
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An inspection is paid for by the Buyer.
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An inspection is conducted by a licensed home inspector AND additional professionals at the Buyer’s option.
What Is The Time Frame For An Inspection?
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To be conducted during normal business hours.
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To be conducted within (TBD) days of the Binding Agreement Date.
What Happens After The Inspection?
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Buyer presents a list of unacceptable findings and terminates the agreement, or
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Buyer accepts the property “AS IS,” or
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Buyer presents the Seller with a list of items to be repaired or replaced.
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Buyer and Seller have (TBD) days to agree upon which items are to be repaired or replaced with “like quality or value by the Seller” (the Resolution Period.)
Snafus
When laid out in orderly bullet points, this sounds perfectly understandable. It’s not.
The potential for confusion (feigned or real) is enormous.
But if you (and your agent) are creative, flexible, and patient, the inspection provides valuable information about your prospective home. And it need not derail the purchase in the process.
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