Buyer Step 12 - What is An Inspection Contingency Notice?
Step 12
Navigating Inspection Outcomes: Crafting Your Contingency Notice
As the curtain falls on the home inspection, Step 12 unfurls the Inspection Contingency Notice, a pivotal addendum to the purchase-and-sale agreement. This notice signals to the seller that the inspection is complete and outlines your course of action within the specified timeframe. Failure to submit this notice in time relinquishes your right to demand property issue resolutions.
Your Options in the Contingency Notice:
- Remove Contingency: If satisfied, you can proceed by removing the inspection contingency.
- Requests for Resolution: Dissatisfied? You can opt for various requests, such as:
- A reduction in the asking price to a specified amount.
- A repair credit provided at closing.
- Specific services, repairs, or replacements to be executed by the seller before closing.
- Contract Termination: If the property proves unsatisfactory, you reserve the right to terminate the contract without requesting repairs or credits.
Navigating Negotiations:
Repair credits and price adjustments can be mutually beneficial. Sellers may prefer these options, avoiding the complexities of repairs, while buyers can oversee fixes to meet their standards. Our collaboration with your loan officer ensures informed decisions regarding price adjustments or repair credits.
Interactions with the Seller:
A meeting is scheduled with the seller or their agent to elucidate the scope and cost of inspections. The seller holds the cards, choosing to accept, reject, or negotiate repairs, especially for substantial issues like electrical faults or foundation cracks.
Seller's Response:
Acceptance: If the seller accepts the contingency notice, whether by committing to repairs, a repair credit, or a price reduction, the contract remains intact.
Rejection or Alternative: The seller may propose alternatives. You can:
- Reject, preserving your earnest money and terminating the contract.
- Accept the alternative.
- Continue with the contract, acknowledging the seller won't perform repairs.
This negotiation dance may continue until a common ground is found, or a decision is made to part ways. Emotions can soar, fueled by the seller's emotional connection to the property and the inspector's meticulous scrutiny. Your Realtor® becomes a crucial mediator, objectively steering the process to safeguard your interests and maintain the deal's integrity. In this intricate performance, we skillfully navigate each step, orchestrating a seamless transition toward the realization of your homeownership dream.
