In an effort to save time and show good intentions, a few agents are now removing the inspection contingency subject to a repair list.
As someone who sat on the CAR contract committee for the contingency removal, I’m well versed in its intent and why you should never remove a contingency in this manner!
The Inspection Contingency Removal and Request for Repairs are two separate issues.
The Request for Repairs is simply a request to the seller. NOT a demand. The seller has a right to accept/reject/counter the request.
By making the inspection contingency “Subject To,” the buyer is then demanding the seller complete the repairs or they will not remove the contingency (which may or may not be true!).
This could create an escape for a seller who is trying to get out of the contract.
Yosemite Seller Sam says, “That varmint buyer ain't removin' the inspection contingency cuz’ I’m rejecting the repair list, so I'm cancelling the contract!”
This also creates a problem later on if repairs are negotiated back and forth because it voids out the original removal (Subject to Addendum A that was rejected by the seller). Another contingency removal needs to be generated, signed and submitted to the seller for acknowledgement.
Remember, the inspection contingency is neither a request nor a demand. It’s a removal that the seller cannot accept/reject/nor counter. That’s why there is no signature line for the sellers to “accept” the removal, only an acknowledgement initial line.
Best practice is to negotiate repairs first (ideally prior to the inspection contingency removal date) and THEN remove the contingency once the repairs have been settled.