What is the inspection period and how does it work?
The inspection period is a set period of time when the buyer may examine their new property before fully committing to taking it as their own. The length of this period is negotiated in the agreement of sale and usually lasts for 5-10 days.
Within that time period, the buyer needs to conduct a home inspection and file a report. The content of that report includes whatever shortcomings the buyer feels the property has and would like addressed before they resume ownership. This could be on little things such as a broken faucet or light, or big things such as an outdated roof that the buyer would like to have fixed. If agreed to by the seller, the issues brought up by the buyer will either be fixed, or the buyer will receive credit to have them fixed.
Following the filing of the inspection report, the seller can either say yes or no to the buyer’s wishes. The seller cannot renegotiate price or terms after the inspection period, but they can refuse to address things that the buyer would like to have addressed. Because of this, the buyer can back out of the agreement following the inspection if they’d like. If this occurs, the buyer becomes eligible for a full refund and the seller has to begin the process of finding another buyer.
If the seller agrees to make the repairs that the buyer requests, then the sale reaches its final point before becoming final. Just prior to closing, the buyer gets a final walk through of the property to ensure that each of their concerns have been addressed before they move forward and close on the home. Once this is complete, closing should go smoothly.