Pre-Sale Inspection Report Clause
A Pre-Sale Inspection Report Clause is a provision commonly included in real estate purchase agreements, which stipulates that the seller will provide a detailed inspection report of the property before the sale is finalized. This clause serves to inform the buyer about the property’s condition, allowing them to make an informed decision.
The clause typically outlines the following key elements:
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Inspection Requirement: It mandates that an inspection of the property be conducted by a qualified inspector prior to the sale. The seller is responsible for ensuring that this inspection occurs.
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Report Accessibility: The seller must provide a copy of the inspection report to the buyer, ensuring that all findings are disclosed. This report may include details about the property’s structural integrity, electrical systems, plumbing, roofing, and any potential issues that may affect the property’s value or safety.
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Negotiation of Repairs: Based on the findings of the inspection report, the buyer may request repairs or negotiate a price reduction. The clause often outlines the process for addressing issues identified in the report, allowing both parties to reach an agreement about necessary repairs before closing the sale.
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Contingency Considerations: The clause may include contingencies, stating that if significant issues are uncovered, the buyer can withdraw from the purchase without penalty or seek further negotiations, such as credits or repairs.
For example, if a pre-sale inspection report reveals that the roof needs significant repairs, the buyer can use this information to negotiate a lower purchase price or request that the seller complete the repairs before finalizing the sale. This clause ultimately protects the buyer’s interests and promotes transparency in real estate transactions.
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