Inspector's Viewpoint
"Your Source For Independent Inspection Information"

Spring 2002 - By Dennis R. Robitaille, Director
Independent Home Inspectors Of North America

Home Inspection Clauses:

An inspection addendum or clause is the part of the sales contract for allowing a buyer to have the home inspected prior to finalizing the sale. While there are some variations around the country, many simply state that the buyer has a right to a home inspection by an inspector of their choosing. There are two important aspects of this clause which vary from region to region.

One, is the time frame. Some purchase & sales (P & S) agreements allow the buyer only 5 days from the signing of the P & S to obtain an inspection. Some allow 10 days. The buyer should be aware that this time frame is not set in stone. Real estate agents would like to have this time period as short as possible. A buyer, however, may need a longer period of time. Although the time period may be pre-printed on the P & S form, it could be changed as long as both parties to the P & S agree upon the time period. I often get calls from homebuyers seeking to schedule an inspection within a day or two of their calling. Since I'm usually booked out about 5 days, I cannot accommodate these buyers.

Two, are the variables that attach restrictions or options to what the buyer can and cannot do with the inspection findings. Some clauses simply state if the buyer for any reason is not satisfied with the inspection findings they may cancel out of the P & S and receive their deposit back. This would be the best clause for the buyer, however, there are clauses out there which are very restrictive. Some have wording which states, "Purchaser may inspect the property for major defects and/or hazardous conditions..." some addendums go on to define a major defect as, "a defect which threatens the structural integrity, or denies the intended use of a substantial portion of the property, or cost over $5000 to repair or replace."

Since there are numerous defects commonly found in homes that would not meet these criteria, the buyer may be stuck buying a property that has a lot of items they would not really want to deal with. When added up, the defects that don't fit the definition of a "major defect" could cost a buyer thousands of dollars after they own the property. For instance, would a house with minor termite damage, a faulty dishwasher, a basement that had minor water seepage, or an outdated electrical system deny the intended use of a substantial portion of the property? It might be hard to argue that it would. There could also be situations where no major problems are found in the house itself, but the buyer discovers the house is under a flight path of a nearby airport or there is a quarry operation that carries out daily blasting on the other side the hill in your backyard.

So the best inspection clause/addendum for a home buyer would be one that allowed at least 14 days to have the property inspected from the time the P & S is signed and one that allowed the buyer to cancel out for anything found not to their satisfaction. Of course if there are things found that disappoint the buyer, but the interest to purchase is still strong, re-negotiation of the P & S might be possible. Whenever dealing with contracts and agreements it is recommended that homebuyers seek out the services of an attorney.