Your Inspection Period - Caveat Emptor ~ “Let the Buyer Beware” - The Buyer’s obligation for due diligence & fact finding
Unless stated otherwise, the residential purchase contract provides the buyer 10 days for the buyer’s due diligence period.
This period is used for Inspecting and Investigating the property to determine the condition, value, and all other facts originally stated in the listing. During this period people typically will hire various companies to help inspect the property from Plumbers sewer scoping the main line, pest control companies looking fo termites, to a full on home inspector that spends half their day examining the condition of the property.
If there are any red flags that come up in a home inspection there are a number of ways to handle them. Make sure you talk with your Realtor to see what options you may have depending on your situation. This inspection notice to the seller is not meant to be negotiated back and further, you have one opportunity to ask the seller to correct your disapproved items.
Once the buyer has completed their review of the property they will have the opportunity to do one of three things.
You have finished your inspections and sent over your notice to the seller… now what?! The seller has 5 days to do their own due diligence and figure out how they are going to address your concerns. Once the seller responds, you also have 5 days to assess the situation and decide if the seller has addressed your concerns adequately. At this time you are able do two things.
This contingency is put into place to help the buyer better understand the home they plan to buy. It also provides you the opportunity to back out if you discover any red flags or if the seller doesn’t agree to fix or address those red flags. Your purchase offer is a legally binding contract when executed but that doesn’t mean you're fully committed without adequate time to throughly examine the property.