Inspection Clause Verbiage Examples

General Inspection Clauses
Seller agrees to have the following item(s) completed and provide paid receipt(s) and lien waivers for invoices exceeding $500 to the buyer prior to final walk-thru 3 days prior to closing. Seller will have proper permits pulled and closed out for items the city requires as part of their policies.

Radon
Radon mitigation system to be installed by a licensed radon- reduction contractor to reduce the radon levels to below 4.0 pCi/l. Radon to be retested by the seller after installation and results to be provided to the buyer. 

HVAC
The HVAC system must be cleaned and certified by a licensed MN HVAC technician to be in good, safe, and efficient working order. If the technician determines that the HVAC system is not in good, efficient working order, the seller must complete all necessary repairs or replacements.

All HVAC work must be completed by a licensed MN HVAC technician. Results and paid receipts must be provided to the buyer before the final walk-through. If the HVAC system is found to be unsafe or not in efficient working order, the seller must repair or replace it at their expense before closing.

1. The HVAC system must be cleaned.
2. The HVAC system must be certified to be in safe, efficient working order.
3. The thermostat must be in working order.
4. The motor and all filters in the air exchanger must be replaced.

All windows must be fully functional by the final walk-through. If any windows require repair or replacement to become functional, the seller must have the work completed by a licensed MN contractor and provide copies of paid receipts before the final walk-through. The seller is responsible for any re-inspection fees required by the appraiser to finalize the appraisal and financing for closing.

Open Permit
Seller agrees to provide proof from the city that the current outstanding permit has been closed ie. basement permit.

Electrical Examples
The seller will pay up to $_____ towards electrical repairs, including ceiling fans, light fixtures, and installation costs. All electrical work must be performed by a licensed electrician. The buyer will be responsible for any costs exceeding $_____. The invoice will be paid from the seller’s proceeds at closing. All necessary permits must be obtained and closed out before closing.

All electrical items to be completed by a MN licensed electrician.

1. All breakers in panel box  to be properly sized in accordance with the wire size.
2. Open breaker slots to be covered with snap-in protective breaker covers.
3. Relocate service panel box to a proper location out of bathroom per electrical code.
4. Exposed romex wire in the garage to be installed inside rigid conduit, or inside the wall or ceiling.

All plumbing items to be completed by a MN licensed plumber.

1. Repair the leaking shower surround in the basement bathroom to ensure it no longer leaks.
2. If the washing machine drain in the wall is not being used, it must be capped.
3. Replace the interior shutoff valve for the exterior hose spigot. (located on the ceiling of the mechanical room)
4. Floor drain in the basement to be inspected and repaired to resolve the gurgling sound.
5. Water leak down the garage wall must be inspected and repaired to prevent further leakage. Any resulting damage or mold must be properly mitigated.

Escrow Examples
General Outline
Seller agrees to escrow 1.5 times the estimate/invoice received on _____ date for ____ repair.  All work shall be completed by the company issuing the estimate/invoice.  Seller and buyer agree to cooperate for property access to allow for swift completion of the work needed.  Proper permits and paid receipts will be provided to the buyer and buyers agent upon completion. 

1 – For Buyer (specific)
Seller agrees to bring certified funds of $______ for unfinished garage repair to closing. Funds will be held in Keller Williams Premier Realty escrow account to cover the remaining invoice for the garage door replacement/repair and any additional cost that may come up during installation.

Keller Williams Premier Realty will pay Ole and Lena’s Garage Door Service directly for the invoice. Any remaining funds will be returned to the seller, Kelsey Okey. Payment to both the garage company and seller will be disbursed within 5 business days after work has been completed along with a copy of the paid invoice.  All work to be completed within 2 weeks of closing or all funds will be refunded to the seller.

Checks to be paid to the following…

Ole and Lena’s Garage Door Service, LLC
P.O. Box 20732
Bloomington, MN 55420952-888-1110

Kelsey Okey
5245 43rd Ave. So.
Minneapolis, MN 55417

2 – For Seller
Seller will be placing $5,839.00 out of the seller’s proceeds at closing into Keller Williams Premier Realty-Lake Minnetonka’s escrow account to cover the cost of the three remaining windows and installation that will be installed by PCS Residential in January 2014. Keller Williams Premier Realty- Lake Minnetonka will disburse the final payment of $5839.00 directly to PCS Residential upon completion of the final three windows being installed by PCS Residential providing Keller Williams Premier Realty- Lake Minnetonka with a copy of the final inspection approval of the closed out permit from the City of Plymouth.

PCS Residential final check will be mailed to 2005 Pin Oak Dr, Eagan, MN 55122 within 3 business days of receipt of the above described closed permit.

Home Warranty
Seller to pay for a home warranty of buyer’s choice up to $____   Buyers agent will order and provide title companies and listing agent with invoice for home warranty prior to closing for payment on Alta statement by the seller.  (make sure to check the costs for the specific property by contacting the warranty company – remember to check for well/septic/extra furnaces/ pools / hot tubs / any addition add ons that would be property specific so your buyer has proper coverage) 

MISC examples
Seller to hire professional insured title contractor to regrout the master shower title with same color grout as currently installed to prevent any further water intrusion.

Seller to hire professional insured appliance contractor or plumber to repair the dishwasher to no longer leak to prevent future water intrusion.  If it cannot be repaired, the seller agrees to install a new dishwasher of similar kind, color and quality. 

Seller agrees to have the following items completed at seller’s expense and provide paid receipts to the buyer by _______, 20__. This signed amendment removes the inspection contingency. 

I. The following to be repaired by a MN licensed Electrician
GCFI outlets to be installed in the following locations: Microwave; Stove/Oven on110 Volt in Kitchen; 110 Volt Laundry Outlet;Dishwasher/Garbage Disposal on same outlet – needs GCFI;

II. The following to be repaired by a MN licensed HVAC
Air conditioner and Furnace appear to be original and well over 20years old. Both to be serviced, tuned up and certified to be in proper working condition. Repair as necessary.

III. The following to be repaired by contractor/handyman
Upper level bathroom exhaust can loose from roof decking. Moisture in the attic will allow biological growth. Inspect and Reattach to roof decking. Ensure proper operation.

• Seller will have subcontractor fix/replace the microwave fan, handle on gas valve and attach exhaust fan duct properly in attic
• Seller will have licensed electrician repair/replace obstructed outlets and ungrounded 3 prong outlets. Electrician will also repair double all tapped breakers in the electrical panel.
• Seller will have licensed contractor repair/seal friable asbestos on the basement boiler pipes