Immediately following the Inspection Deadline Period is the Inspection Resolution Period, during which the Buyer and Seller must agree on the Buyer’s requested repairs. According to a survey from the National Association of REALTORS®, only 5% of home sales contracts were terminated in early 2024, with failed inspection contingencies contributing to this figure.
Calculating the start date of the Inspection Resolution Deadline Period is crucial in the real estate transaction process, and it’s something that SmoothTC handles for all its agents.
What is the Inspection Resolution Period?
The Inspection Resolution Deadline is the point by which the Buyer and Seller must come to a written agreement on how to address any outstanding repairs. Typically, this is done through a fully executed Repair Amendment, but it can also be resolved if the Buyer delivers a notification to accept the Property As-Is or chooses to terminate the Contract. The period can be extended via an Amendment if necessary.
How Do You Calculate the Start Date of the Inspection Resolution Period?
The start date of the Inspection Resolution Period is when the Buyer delivers the written notification to the Seller, typically in the form of a Repair Amendment.
What Happens if the Inspection Resolution Deadline is Missed per the Contract?
Per the contract, if one of the following actions is not completed, the Agreement will terminate, and the Earnest Money will be returned to the Buyer:
The Seller and Buyer enter into a Repair/Replacement Amendment or a written equivalent; OR
The Buyer provides written notice to the Seller that the Buyer is accepting the Property “AS-IS”; OR
The Seller and Buyer agree to a written amendment extending the Resolution Period.
Whose Obligation is it to Ensure This is Done by the Requisite Time?
Both parties share the responsibility of meeting this deadline.
How SmoothTC Makes the Inspection Period Deadline Easy for Agents
Navigating deadlines can be challenging, especially when managing other responsibilities. Here’s how a dedicated Transaction Coordinator can assist:
Calculates the Resolution Period: When the Buyer’s Agent sends the Repair Proposal to the Seller, SmoothTC tracks the days contractually agreed upon for the Period.
Sends SMS & Email Reminders: SmoothTC provides SMS and email reminders for the Inspection Period Deadline.
Creates Calendar Invitations: SmoothTC sends calendar invitations to ensure that this deadline is not missed.
Prepares Amendments: Agents can quickly submit content from their Agent Launchpad for swift signature collection.
Avoid Troublesome Pitfalls
Here are some potential pitfalls we help you avoid:
Incorrect Computation: The Inspection Resolution Period starts when the Buyer’s Agent delivers the written instrument to the Seller. The day of delivery counts, regardless of whether it’s before the number of days contractually specified for the Inspection Period Deadline.
The Bigger Picture: Supporting Your Clients and Your Business
SmoothTC expertly manages the Inspection Resolution Period, allowing you to focus on providing top-notch service to your clients. Our support not only simplifies your workload but also adds professionalism and reliability to your business. Your clients will appreciate the seamless, stress-free experience, leading to more referrals and repeat business.
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