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What happens if you can't agree to a resolution of inspection items?

After agreeing to a sales price, buyers conduct inspection within time frame and identify inspection items. They propose a monetary resolution. The seller proposes partial non-monetary resolution. If the two parties can't come to an agreement within the inspection resolution time frame, what happens? Can either party terminate the contract at any point during the counter-offer process?
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August 08 2013 - Chesterfield
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Answers (7)

Read the contract.  All the terms and conditions which govern the parties to the transaction are spelled out.  That said - providing you are using a sales contract approved by the Missouri Board of Realtors and not one from the internet.

If you cannot come to an agreement during the inspection contingency period either accept the property or terminate the agreement.
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August 10 2013
In Oklahoma you have 10 days normally to conduct inspections after the offer has been excepted.

Then by contract "in the sole opinion of the buyer, results of investigations......., the buyer may cancel the contract.

Can you share with us the main item found in the inspection that was of concern? Just curious....... 
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August 10 2013
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"...but in Virginia, at any point during the inspection negotiations, if the party misses the deadline, the contract becomes void."

Curious...

Which "party", given that the onus for the inspection is on the buyer? Are you saying that if the buyer does not perform the inspection in time, then the contract is now void? As a seller, I'd be PO'd if a buyer tried to walk on the deal because they (the buyer) failed to perform on their contingency.

I could see if the buyer puts a fuse on their request and the seller does not respond in time. But, technically, my understanding is that the buyer does not even have to give the seller an option to remediate - so this distinction is a bit moot.
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August 08 2013
The buyers have the right to cancel the contract if they find the inspection to be unsatisfactory. If the sellers propose a partial non-monetary solution and the buyers do not agree to it, then the buyers can withdraw from the contract on the same basis: the inspection results are unsatisfactory to them.

The seller does not have a say in whether the contract continues based on inspection results. So if the seller refuses to compromise on the repairs, the buyers can either cancel or take on the repairs themselves and continue the contract.

If the flaws discovered in the home are flagrant, such as leaks in the roof, and the buyer cancels,  the seller and the seller's agent are obligated to disclose those problems to the next set of potential buyers.

So it may (or it may not, depending upon what the buyers are asking for) be financially worthwhile for the seller to compromise on the repair costs.


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August 08 2013
I am not sure how the contract reads in Missouri, but in Virginia, at any point during the inspection negotiations, if the party misses the deadline, the contract becomes void.  Do you have your home inspection addendum handy?  Also, do you have a real estate agent?  They should be guiding you through this process.
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August 08 2013
Yes.. I agree with SoCal Engr.. you should become a realtor... :)
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August 08 2013
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I'll caveat with "I am not in the RE business", and then offer an opinion anyway...

Assuming the buyer put in an "inspection contingency", the buyer has an opportunity to request remediation of issues - and terminate the transaction if they are not satisfied with the findings/remediation.

The seller's options are to remediate any findings (note that "remediate" does not necessarily mean "fix"), or to refuse to do anything about the issue(s). However, I don't believe the seller can terminate the contract at this point - just refuse to negotiate and put the ball back into the buyer's court.

I'd be very interested to hear if the seller actually has any outs they can exercise.

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August 08 2013
 
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