Inspection Contingency Alternative
1. The buyer could forgo their right to request seller concessions based upon the results of the inspection.
EXAMPLE: Buyer’s offer is contingent upon a satisfactory inspection at Buyers expense within ____ days. Upon receipt of the inspection, Buyer shall have the following two options only: (a) terminate this agreement in writing; or (b) proceed to close pursuant to the terms hereof. Failure to terminate this agreement in writing within the stated timeframe shall constitute a waiver of this contingency.
2. The buyer could agree to limit their right to terminate the agreement only to situations where there is a major property defect.
EXAMPLE: Buyer’s offer is contingent upon satisfactory inspection at Buyers expense within ____ days; provided, however, that Buyer may not terminate this agreement based on the results of the inspection unless it reveals a single defect the estimated repair cost for which is in excess of $_________.
3. The buyer could agree to forfeit their earnest money deposit if they find the inspection results unsatisfactory.
EXAMPLE: Buyer’s offer is contingent upon a satisfactory inspection at Buyer’s expense within ____ days. If the inspection reports are not satisfactory, Buyer may terminate this agreement by providing written notice to Seller within said timeframe, in which case the earnest money deposit shall be released to Seller and neither party shall have any future rights or obligations hereunder.
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Craig
