Ten-day inspection periods are common. The buyer makes an inspection contingent offer on a home. The inspection period starts the day after the final acceptance date on the purchase agreement. If there is no final acceptance date then I guess the ten-day period could start anytime.
During that ten-day period a few things need to happen:
- The buyer has inspections and tests done at his or her expense.
- The buyer decides if they will ask for repairs or not.
- If the buyer asks for repairs the seller reviews the repairs and responds with a yes, or a no, or a counter of some sort.
- Both parties agree in writing to the repairs.
That is why it is important to get the inspection done as soon as possible or ask for a longer than 10 day inspection period. If the ten days run out before there is an inspection then technically the buyer just bought a home.
I do everything I can to make sure no one is buying a home without an inspection no matter which party I am representing. However, I don’t make up the rules or the laws and it is up to my clients how they want to handle all of this. I can only advise them.
Sometimes the inspection is all done but one part or the other needs to research the repairs and get a price. As I have mentioned before sellers should not commit without knowing if they can get the work done or how much they will cost. Negotiations will need to go beyond the stated inspection period.
If extra days are needed for research the inspection period can be extended if both parties agree and sign an amendment.
Occasionally sellers just won’t respond. In that case, rather than letting the inspection period expire buyers may want to cancel the contract while they can still do so without penalty.
Inspection periods used to be separated. Buyers had X number of days to have the inspection, sellers had X number of days to respond and both parties had X number of days for negotiation. Many of us prefer the old system but it wasn’t perfect either as parties would disagree over which day or period was which and when they started or ended.
Occasionally for houses that are going to sell with multiple offers, the buyer will have an inspection done before making an offer or waive the inspection. I am not a fan of waiving a complete home inspection for any reason. Third party inspections protect buyers, sellers, and real estate agents.
It should be noted that even if the contract states that the sellers can continue to show the house the showings will slow down or stop once the seller has accepted an inspection contingent offer. Sellers can only sell to one party but can collect offers during the inspection period as backup offers.