What is an Inspection Notice?

Many home sale contracts contain a provision allowing the Buyers to obtain private inspections. This period is often referred to as the “Inspection Period” or the “Due Diligence Period.” The Buyers usually have until the end of this period to submit an Inspection Notice to the Seller. If they don’t, the Buyers risk waiving their rights regarding inspection issues.

In most typical cases, it very important that inspections are scheduled as soon as possible after the contract is signed in order to meet this deadline. This will give the Buyers’ lawyer sufficient time to prepare an Inspection Notice that will be legally binding and meet the Buyers’ needs. Depending on how complicated the issues are, Buyers’ attorney may need to review the inspection report or draft an addendum to the standard Inspection Notice used by real estate agents.

This Inspection Notice is then sent from the Buyers (or their attorney or agent) to the Seller, requesting that the Seller make repairs, reduce the sale price, or pay a portion of Buyers’ closing costs for the deal to go forward. (Be aware that if the Buyers are requesting a monetary change, their lender may require a Contract Amendment).

 There are a number of reasons why Buyers send Inspection Notices.   These include:

  • The Buyers learn through private inspections that the home is not in as good condition as initially thought;
  • The Buyers do not have the money to make certain repairs, based on contractor estimates obtained;
  • The Buyers feel that certain repairs are the Seller’s responsibility;
  • The Buyers believe that the Seller is in a better position to fully explain the scope of the problem and provide access to a contractor;
  • The Buyers needs further financial concessions in order to proceed to closing.

If you would like us to prepare an Inspection Notice for you, or have questions about one, please call us at 314.862.2237 or contact us here.


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