Inspection

July 16, 20251 min read

PROTECT YOUR INVESTMENT WITH THE INSPECTION CLAUSE

What does the inspection clause mean?
It’s the period during which a thorough physical inspection of the property can be conducted to identify any hidden damages or deficiencies that weren’t visible during the initial visit.

Home inspector examining property systems as part of the inspection clause to protect real estate investment.

Where is this clause established?
In the purchase agreement, it specifies:

  • The deadline to complete the inspection

  • The maximum estimated repair costs or damages that would allow the cancellation of the contract

Who performs the inspection and how?
A licensed inspector can perform it using tools and measurement techniques to check:

  • Structure

  • Appliances

  • HVAC system

  • Water heater

  • Electrical wiring

  • Roof condition

  • Water pressure/plumbing

  • Light switches

  • Water source and quality

  • Septic system

  • Presence of pests (termites, cockroaches, rats, mice, etc.)

The inspector prepares a detailed report with repair or replacement estimates to give a clear understanding of the property’s condition.

If you choose not to hire an inspector, you may conduct the inspection yourself.

Is the seller responsible for repairs or credits?
No. The inspection only gives the buyer the right to move forward, attempt negotiation, or cancel the contract based on the amount set in the clause.

Summary:
The inspection clause lets buyers assess a property's condition before purchase. If issues exceed the agreed limit, you can negotiate or cancel. Sellers aren’t required to fix anything—just accept or reject your terms.

Real Estate Expert focus on Pre/New construction residential  properties

Andres Manco

Real Estate Expert focus on Pre/New construction residential properties

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